Declaring a property on Income Tax 2021 may seem like one of the most boring tasks of the beginning of the year. Still, the document must be filled out and requires a lot of attention from whoever is in charge, especially when the subject is property declaration.
So that you don’t face any problems, here are some tips to help you in this task.
Step-by-step declaration of a property in the IR
1) Real estate must be listed in the “Property and Rights” form. If it is an apartment, the declaration is on line 11; if it’s a house, the declaration is on line 12. Now, if it’s land, go to line 13.
2) The ideal is to provide as much information as possible on discrimination. Write who owned the property, when you made the purchase, if the property was financed, if it was a property on the plan, among other acquisition data. There is a space reserved to specify the property address, the municipal registration, the purchase date and the total area of the land.
3) The value to be declared is the amount for which the property was acquired. Even though there may be appreciation later, what matters is how much you paid.
4) If your property was purchased and financed in 2020, you must fill in the field “Situation on 12/31/2019” with “R$ 0” and the field “Status on 12/31/2020” with the down payment added to the total value of the installments paid up to that moment.
5) If your property was purchased and financed before 2020, you must add the declared value in 2019 with the installments paid over the past year and write the total in “Status on 12/31/2020”. The field “Status on 12/31/2019” remains with the same value declared at the beginning of 2020.
6) If your property was purchased in cash in 2020, just fill in the field “Situation on 12/31/2019” with “R$ 0” and the field “Status on 12/31/2020” with the total value of the property.
7) If your property was paid off in 2019, you must fill in the fields “Status on 12/31/2019” and “Status on 12/31/2020 with the same amount”.
8) If you sold your property in 2020, you must declare this action. Just fill in the field “Situation on 12/31/2019” with the value of the property paid off and the field “Status on 12/31/2020” with “R$ 0”. Finally, it is necessary to inform the sale price and the CPF or CNPJ of the buyer.
9) If you made any renovations to the property, it is necessary to declare the amounts spent in this process. The total amount must also be written on the “Properties and Rights” form, but on line 17. In addition, all proofs referring to the renovation must be kept and you must inform which property the service took place.
Looking at it like this, it doesn’t even seem like a seven-headed animal to declare your property on Income Tax, does it?! Take advantage of the tips and be sure to fill in your declaration by April 30th. Just download the program and start declaring.