Income Tax: How to declare rent paid and received – 05/29/2023 – Market

Those who receive and pay rent need to inform the values ​​if they are forced to declare the 2023 Income Tax. Federal.

Lease information varies depending on whether the party involved is an individual or a legal entity. In the second case, an amount of the amount paid or received is retained by the legal entity, which is obliged to send the income statement to the other party.

“If the shipment was not made, it is necessary to ask the company involved. The Revenue crosses the data, so it is important to have the values ​​matching. If you have any doubts, look for the other party to leave it well aligned”, explains the tax lawyer Renato de Andrade Bueno, from Ronaldo Martins & Advogados.

If the rent only involves an individual, you must have collected the carne-leão each month, have the Darfs (Federal Revenue Collection Document) and inform the amount paid.

Payment and receipt of rent is not accepted for Income Tax deduction, but must be reported. IPTU, condominium fees and brokerage fees can be deducted if paid by the owner of the rented property.

In this situation, the lessor must inform the amounts in “Payments Made”, in code 99 (Others), with the beneficiary’s name and CNPJ. Inform the city hall (in the case of IPTU), the name of the condominium or real estate agency involved, describe what refers to the payment with the property information and, finally, fill in the amount. For each payment, you need to open a new file.

“However, this deduction condition is only for the lessor. If the lessee was the one who paid, the amount is not deductible”, says Priscila Farisco, partner in the tax area at Viseu Advogados.

I get rent. How do I declare?

If the tenant is a legal entity, it must forward the income report to the landlord, which will have all the information to be declared. “It is up to the legal entity to withhold the amount of tax at source and send the income report. If this was not sent, ask the company, as they would need to have sent it by February 28”, says Priscila.

See the step by step to declare

• In “Declaration Forms”, go to “Taxable Income Received from Legal Entities” and click on New

• Fill in the name and CNPJ of the paying source, and the fields income received from a legal entity, official social security contribution and withholding tax, which are in the income report

If the tenant is an individual, the owner of the property is responsible for paying the monthly carnê-leão. The form is filled out monthly at the Federal Revenue’s e-CAC (Virtual Service Center). After this step, the taxpayer issues a receipt and makes the payment by the last working day of the month following the amount paid for the rent.

Those who didn’t do this procedure last year need to do it before delivering the Income Tax return. However, there will be payment of a fine of 0.33% per day, with a limit of 20%, and interest of 1% per month in arrears, in addition to the Selic rate. The Revenue provides Sicalc (Legal Additions Calculation System), which automatically makes the calculation.

“Anyone who pays the full amount at once can only stop at the fine mesh, as the late charge generates interest and fines, and it cannot be paid at once. The ideal would be to print a tab for each month and pay”, says Priscila Farisco.

See the step by step to declare

• In “Declaration Forms”, go to “Taxable Income Received from Individuals/Abroad” and select the “Other Information” tab

• If the carnê-leão has been paid, click on the button Import Data from Carnê-Leão, which is in the lower right corner. It will import the amounts paid month by month into the columns “Rentals” and “Carnê-Leão Darf paid code 0190”

• In case the data is not imported or the filling has not been done, manually fill in the two columns month by month

I paid rent. How do I declare?

For those who pay the rent, the way to declare it is practically the same. The only variation is that if it is a legal entity, it is necessary to inform the CNPJ, while for the individual the data is the CPF.

See the step by step to declare

• In “Declaration Sheets”, go to “Payments Made” and click on New

• Select code 70 (Property rentals), fill in the name and CNPJ (if a legal entity) or CPF (if an individual) of the lessor

• In description, inform that it is payment of rent and put the property data. Already in value paid, put the sum of the amount in 2022.

If the payment is split between two or more people, this must be in the contract, and each party must state the amount for it.