Practice question
How does Section 39(A)(1) treat real property used in the taxpayer's trade or business?
- It is always capital because land cannot depreciate.
- It is excluded from capital assets.
- It is capital only if its price rises.
- It is exempt from every tax.
- Its classification depends only on its size.
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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