Anyone who declares income tax knows that the process is not a simple task, especially for those with a diversified source of income. An example of this is those who own property and earn money from rent, who need to be careful not to fall for the tax authorities.
The same applies to someone who lives in a rented house and pays rent every month. In both cases, it is necessary to declare the rent in the income tax.
How is the amount paid for rent declared in income tax?
Below, check the details for your rental income tax return.
lessors
In short, it is the tenant’s responsibility to collect income tax each year. At the end of the calendar year, he needs to file an income report, which proves that the tax has already been collected and that the owner uses this document to make his return.
In the Internal Revenue Service system, the form to be filled out in this report is Taxable income received from legal entities. There, the owner needs to inform the CNPJ and the name of the payment source. In addition, it is necessary to indicate the amount of rent and taxes withheld.
On the other hand, if the lease is signed between individuals, the property owner must pay income tax every month from the carnê-leão. It withholds taxes that are not taxed directly from the source. In addition, it is mandatory for owners whose income is over R$1,903.98 per month with rent.
tenants
Tenants need to report the payments made to the IRS so that the system can reference the information and find the same data provided by the landlord. The form used by tenants in the income tax system is Payments madeIn the Code 70 – Real estate rentals. There, you need to fill in the information for the property owner.
Anyway, do you want to stay informed of everything that is happening in the financial world?
So follow us YouTube channel And on our social networks, like FacebookAnd the TwitterAnd the Twitch And the Instagram. So, you will follow all about Banks Digital credit cardsAnd the loansAnd the financial technology and issues related to the world of finance.
picture: chianofol / Shutterstock.com
