An Owner Who Leases a Lot and a House

July 29, 1959 BIR RULING NO. 382-59 Mr. Alfonso P. Syfu 1751 Felix Huertas St. Sta. Cruz, Manila S i r : In reply to your letter dated June 18, 1959, I have the honor to inform you that a person who, as owner, leases a lot and a house for P750.00 a month is a real estate dealer. At the commencement of the business real estate dealers shall pay the initial rate of P150.00 as fixed tax. Thereafter the rate of tax payable by them shall, in the case of lessors and sublessors of property, based on their actual income during the preceding calendar year, illustrated as follows: Actual Income Rate of Tax P4,000.00 P10,000.00 P150.00 10,000.01 30,000.00 300.00 over 30,000.00 500.00 Real estate dealers must keep a journal and a ledger or their equivalents. However, if their gross quarterly earnings or receipts do not exceed P5,000, they may keep and use only a simplified set of Bookkeeping Records, duly authorized by the Secretary of Finance wherein all transactions and results of operations are shown and from which all taxes due the Government may readily and accurately be ascertained and determined anytime of the year. Should their gross quarterly receipts exceed P25,000.00 they must have their books of accounts audited and examined yearly by an independent certified public accountant and their income tax returns accompanied with certified balance sheets, profit and loss statements, schedules listing income-producing properties and the corresponding incomes therefrom and other relevant statements. (Section 334, Tax Code) aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue