14-2000 issued December 29, 2000 amends
Sections 3(2), 3 and 6 of RR No. 13-99 relative to the sale, exchange or disposition
by a natural person of his "principal residence".
The residential address shown in the latest income tax return filed by the
vendor/transferor immediately preceding the date of sale of said real property shall
be treated, for purposes of these Regulations, as a conclusive presumption about
his true residential address, the certification of the Barangay Chairman, or Building
Administrator (in case of condominium unit), to the contrary notwithstanding, in
accordance with the doctrine of admission against interest or the principle
of estoppel.
The seller/transferor's compliance with the preliminary conditions for exemption
from the 6% capital gains tax under Sec. 3(1) and (2) of the Regulations will be
sufficient basis for the RDO to approve and issue the Certificate Authorizing
Registration (CAR) or Tax Clearance Certificate (TCC) of the principal residence sold,
exchanged or disposed by the aforesaid taxpayer. Said CAR or TCC shall state that
the said sale, exchange or disposition of the taxpayer's principal residence is
exempt from capital gains tax pursuant to Sec. 24 (D)(2) of the Tax Code, but
subject to compliance with the post-reporting requirements imposed under Sec.
3(3) of the Regulations.

issuing. and will be paid within thirty (30) days from the expiration of the said one-year redemption period. 1999 further amends Revenue Memorandum Order No. 4-99 issued March 16. accepting or transferring the real property wherever the document is made. the certificate of title of the mortgagor will not be cancelled yet even if the property had already been subjected to foreclosure sale. .REVENUE REGULATIONS NO. no Capital Gains Tax will be imposed because no capital gains has been derived by the mortgagor and no sale or transfer of real property was realized. In case the mortgagor exercises his right of redemption within one year from the issuance of the certificate of sale. the Capital Gains Tax on the foreclosure sale shall become due based on the bid price of the highest bidder. finance and insurance companies. signing. Instead. no transfer of title to the highest bidder can be effected yet until and after the lapse of the one-year period from the issuance of the said certificate of sale. 6-92 relative to the payment of Capital Gains Tax and Documentary Stamp Tax on extrajudicial foreclosure sale of capital assets initiated by banks. In case of non-redemption. issued. signed. The corresponding Documentary Stamp Tax will be levied. collected and paid by the person making. Where the right of redemption of the mortgagor exists. and the cancellation of the title and the subsequent issuance of a new title in favor of the purchaser/highest bidder depends on whether the mortgagor will redeem or not the mortgaged property within one year from the issuance of the certificate of sale. accepted or transferred where the property is situated in the Philippines. but only upon the expiration of the one-year period of redemption. Thus. only a brief memorandum will be annotated at the back of the certificate of title.

Commissioner. provided such method conforms with generally accepted accounting principles. under the IAS No. Inc. 17 will be higher in the initial months of the lease than the actual income earned during the relevant taxable period had it been determined based on the regular accrual method of accounting. Thus. as lessor of the condominium project may report as gross income. Cf. the accounting method being implemented by KSA in reporting its lease income in its books of accounts in accordance with the rules set forth under the International Accounting Standard (IAS) No. 211 F. 2000) . In other words.The general rule is that a taxpayer is allowed to report income and expenses in accordance with the method of accounting employed. including rentals actually earned but uncollected as of the end of such period. KSA cannot be said to have derived taxable income during the rent-free period for the lease of the said property.2d 232). Moreover.METHODS OF ACCOUNTING . 003-2000 dated January 05. However. income for the lease of the above-mentioned property during the rent-free periods granted in the Contract of Lease for the said taxable year. whether constructively or otherwise. for income arising from rentals of property. 2d 462. KSA cannot be deemed to have realized. KSA. Evansville Courier vs. or any amount credited by the lessee for the account of KSA. a taxpayer must report as part of the gross income advance rentals received during the taxable year. 17. only those rental income actually earned as well as advance payments which constitute its taxable income in the year when received. 259-92) (Hyde Part Realty. In the instant case. v. Commissioner 62 F. the sum of the expected rental for the lease term is computed and divided equally over the total number of months covered by the lease. This is true even though the lessor is on the accrual or the cash method of accounting (BIR Ruling No. since no monetary consideration or other material consideration that would flow to. by using the accrual method of accounting. (BIR Ruling No.