Taxability of the Real Estate Dealers

October 10, 1958 BIR RULING NO. 670-58 Mr. Alberto L. Dalmacion 9-J Escoda Street North Balut Subdivision Navotas, Rizal S i r : Reference is made to your letter dated September 23, 1958 stating the following: LLpr "A and B are brother and sister. In 1936 A and B received 8 hectares of land from their mother as a donation. Last year the wife of A bought the one-half share corresponding to his sister B. A and his wife being the sole owner of the 8 hectares of land at present, they are now selling their land as a subdivision. Under these facts, is A and his wife under obligation to pay a tax before they can sell any of such lots? If so, what kind of tax and how much?" In reply thereto, I have the honor to inform you that A and his wife are, under the above facts, real estate dealers subject to the fixed tax prescribed by Section 182(A)(3)(s) of the Tax Code, the amount of which is as follows: P150, if their annual income from selling the lots is P4,000 or more but not exceeding P10,000; P300, if such annual income exceeds P10,000 but does not exceed P30,000; and, P500, if said annual income exceeds P30,000. prll Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue