Income Tax 2022: How is the rent payment declared? | Income tax

Although the taxpayer who pays the rent cannot deduct these expenses from the income tax, the payments must be declared so that tax authority Review the data and make sure that the values ​​declared by the landlord and tenant are consistent.

However, taxpayers with taxable income of R$28,559.70 last year do not need to declare rent, as they do not have to file an IR statement.

See below the questions and answers to understand how to declare a rent. The answers come from expert David Soares, editorial analyst at IOB Consultancy.

The deadline for submitting an IR announcement is until April 29th. Ad version software It must be downloaded from a file tax authority (Click here to access).

Does every taxpayer who lives on rent need a declaration?

no. An individual tenant who in 2021 received taxable income in an amount less than R$28,559.70 is not required to submit an annual adjustment statement, provided that it does not fit in with other mandatory cases.

How should a tenant report rental expenses?

The lump sum paid as rent to individuals during 2021 must be reported on the Advance Payments form, under code 70 – Property Lease, and reported, in the respective fields, of the lump sum paid in the year, the name and CPF of the lessor (property owner), even if The real estate agent mediated.

Should IPTU, condominium fees or other property related expenses be declared?

If paying the IPTU fee and condominium fee is the responsibility of the tenant, these values ​​must not be reported in the advertisement. Only the amount corresponding to the rentals should be reported.

Only any improvements made to the property must be reported to the landlord. The amount spent can be added to the value of the asset.

Who shares the lease with another person?

In cases of this kind, the ideal is that the names of all the payers of the payments appear as tenants in the contract, with each one reporting the amount they paid on their income tax return.

If the contract is signed with only one of the tenants, the main tenant may enter into a subletting agreement with the second tenant. However, in this type of case, the sub-lessor may deduct from the amount received the amount of rent paid to the original lessor to avoid the obligation of the monthly payment (carnê-leão).

“The sub-lessor may deduct from the amount received for the sub-lease the amount of the rent paid to the original lessor. If, for example, the taxpayer rents a property for R$3,000, and sublet it for R$2,000, he can deduct from R$2,000 Rr Soares R$3,000 refers to the rent paid to the property owner. Thus, the base of the IR calculation will be negative R$1,000. In other words, there will be no tax to be paid.”

What are the precautions to be taken when advertising for rent?

The taxpayer must keep all receipts of rent payments for the past five years. This is the deadline set by the IRS for the taxpayer to file a final correction return.

“The lessor must keep the rental agreement, rental receipts, as well as receipts for housing unit fees, IPTU, and expenses related to the renovation of the property, for which he has been held liable, for a potential offer on tax authorityOn demand, ”the specialist instructs.

Do homeowners or real estate agents have to file an income report?

The individual lessor is not required to provide proof of income for the individual lessee. However, if the lessee is a legal entity, it must provide documents with the amounts of rent paid in 2021.

However, it is important that the renter and landlord report the amounts paid and received as consistent rental income in advertisements, to avoid the risk of getting caught in a fine net.

You are required to declare income tax in 2022:

• Who is the Receiving taxable income above R$28,559.70 in 2021. The amount is the same as last year’s income tax return. Interest: Emergency aid is considered taxable income;
• taxpayers who received Income that is exempt, non-taxable, or exclusively taxable at sourcewhose sum was greater than 40 thousand Brazilian riyals last year;
• Which happened, in any month of 2021, Capital gains from the disposal of assets or rightssubject to the occurrence of tax, or carried out operations on stock exchanges, commodities, futures and the like;
• which was, in 2021, Total revenue of more than R$ 142,798.50 in rural activity;
• who had, as of December 31, 2021, Possession or ownership of goods or rights, including abstract land, with a total value of more than R$300,000;
• Who is the Changed to resident status in Brazil in any month He remained in this state until December 31, 2021;
• Who has the Capital gains tax exemption In the sale of residential property, followed by the acquisition of another residential property within 180 days.