Excess of the Appraised Value of a Property Over Its Net Book Value
BIR Ruling No. 635-58 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 6, 1958
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October 6, 1958 BIR RULING NO. 635-58 Mr. Diosdado D. Rubio Meycauayan, Bulacan S i r : In reply to your letter dated March 18, 1958, I have the honor to inform you as follows: 1. The excess of the appraised value of a property over its net book value is not subject to the income tax, there being no income realized on account of the appraisal of said property. 2. A person who purchases rawhides which he salts preparatory to the resale thereof to leather manufacturers is a mere dealer, subject to the graduated fixed annual tax prescribed by Section 182(A)(2) of the Tax Code. Salted rawhide is not a manufactured product until manufactured into leather. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue
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