BIR Ruling No. 390-61

No date supplied BIR RULING NO. 390-61 This refers to your letter . . . , requesting information from this Office as to what portion of the income realized from a sale of a parcel of land which your wife in inherited from her deceased mother will be subject to tax if she sells the same to the provincial government. In reply thereto, I have the honor to inform you that if the parcel of land in question is used in your trade or business, the entire profits realized from the transaction shall be included in your return for purposes of the income tax. If said property, however, is not used in the trade or business in which you or your wife is engaged in, it will be considered as capital asset and if your wife held the land for more than one year, only 50% of the profit or gain realized will be subject to income tax, in accordance with Section 34 of the Tax Code. LLphil