Escolar Documentos
Profissional Documentos
Cultura Documentos
v
Capital Asset
Erwin Selodio
NATURE OF ASSET
Inventory on hand at end of taxable year
ORDINARY ASSET (Sec 39A) Stock in trade held primarily for sale or for lease in
the course of trade or business
Asset used in trade or business, subject to
depreciation
Real property used in trade or business
shall have the same meaning attributed to that term under Article 415 of
Republic Act No. 386, otherwise known as the “Civil Code of the Philippines
Real Estate Dealer
BIR Form 1706 – Final Capital Gains Tax Return (For Onerous Transfer of Real
Property Classified as Capital Assets -Taxable and Exempt)
BIR Form 1707 - Capital Gains Tax Return (For Onerous Transfer of Shares of
Stocks Not Traded Through the Local Stock Exchange)
BIR Form 1707A - Annual Capital Gains Tax Return (For Onerous Transfer of
Shares of Stocks Not Traded Through the Local Stock Exchange)
Who/what are considered exempt from
the payment of Final Capital Gains Tax
Dealer in securities, regularly engaged in the buying and selling of securities
An entity exempt from the payment of income tax under existing investment
incentives and other special laws
An individual or non-individual exchanging real property solely for shares of stocks
resulting in corporate control
A government entity or government-owned or controlled corporation selling real
property
If the disposition of the real property is gratuitous in nature
Where the disposition is pursuant to the CARP law
THANK YOU
Real properties shall be classified with
respect to taxpayers engaged in the real
estate business
All real properties acquired by the real estate dealer shall be considered as
ordinary assets
All real properties of the real estate lessor, whether land, building and/or
improvements, which are for lease/rent or being offered for lease/rent, or
otherwise for use or being used in the trade or business shall likewise be
considered as ordinary assets.
Real properties shall be classified with
respect to taxpayers engaged in the real
estate business
All real properties acquired by the real estate developer, whether developed
or undeveloped as of the time of acquisition, and all real properties which are
held by the real estate developer primarily for sale or for lease to customers
in the ordinary course of his trade or business or which would properly be
included in the inventory of the taxpayer if on hand at the close of the
taxable year and all real properties used in the trade or business, whether in
the form of land, building, or other improvements, shall be considered as
ordinary assets
Real properties shall be classified with
respect to taxpayers engaged in the real
estate business
All real properties acquired in the course of trade or business by a taxpayer
habitually engaged in the sale of real property shall be considered as ordinary
assets
ORDINARY v. CAPITAL ASSETS