Practice question
A taxpayer argues that land used as its operating factory site must be a capital asset because land is not depreciable. Resolve the argument under Section 39(A)(1), without computing tax.
Legal references
- NIRC, Section 39(A)(1); https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- Revenue Regulations 7-2003, Section 2; https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/10/40237
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