Those who declare the Income Tax for Individuals (IRPF) must be careful not to miss the shipping deadline at the beginning of the year, in addition to keeping up to date with any changes in the delivery process. It is also important to gather documents that help to fill in the required data, such as the income tax report for Income Tax.
This instrument serves as a guide when including values in the system, helping you not to get lost when filling out the declaration. The company you work for may issue it, as well as an organization for which you provide services.
The INSS also issues an income report to its beneficiaries. Banks and other financial institutions also produce this document for their account holders or customers. This helps when posting income from assets/investments.
To learn more about this instrument and the IRPF, keep reading and check out the guide we’ve prepared!
How to declare Personal Income Tax?
To declare the IRPF, you will need to follow steps that can vary from situation to situation. Further on, we separate the main steps.
1. Download and install the IRPF program
First, go to the IRS website, download the “Income Tax Return Program” and install it on your computer. If you prefer, you can download an app for Android or iOS to proceed with the declaration via a mobile device.
On the e-CAC (Virtual Service Center) portal, it is also possible to fill in the declaration online, but a digital certificate is required. There are also restrictions for some profiles, so not everyone will be able to use this option.
It is worth noting that this walkthrough was based on the computer program.
2. Create new declaration
After accessing the IR program, you should click on “Create New Statement”. It is possible to import data/file from past declarations if you have done one in previous years.
3. Choose the type of claim
Three options will appear: “Annual Adjustment Declaration”, “Final Estate Declaration” and “Definitive Country Exit Declaration”. Choose the first one and enter your CPF. Your name will automatically appear. Say “ok”.
4. Fill in your details
In the menu on the left, click on “Declaration Sheets”. Several options will come up. Depending on your condition, profile, income etc. you must fill them out. The more general ones, that is, which almost everyone needs to fill in, are below.
Before proceeding, however, be aware that the numbers that appear in parentheses after certain items are their codes in the system. This numbering makes it easier to search for them when filling out the document.
ID Taxpayer
Here is your personal data area. This includes:
- Name;
- birth date;
- address;
- marital status;
- nature of their occupation.
Some of this data may appear automatically because you entered your CPF initially.
Dependents
In the item “Option for Taxation”, located in the lower left corner, outside the “Declaration Sheets”, it is possible to choose the model “By Legal Deductions” and the “By Simplified Discount”. The system will indicate the tax that can be refunded on each option.
If you have dependents and want to get legal deductions for this, you should choose the first model. Dependents’ data must be included in the declaration forms, in the “Dependents” module. This includes reporting taxable income, rights/assets, debts related to them.
The alternative “By Legal Deductions” is recommended for those who have a lot of expenses to deduct due to dependents and other legal options that give the right to rebates.
In the second, simplified model, the IRS automatically applies a 20% discount on taxable income. For those who have few deductible expenses, this may be the most advantageous option.
Taxable Income Received from PJ by the Holder
Here you will need to record your income from the previous year. This information is in the earnings report sent by the company with which you had an employment relationship. If you worked for more than one, you will need to enter the values for each separately.
Income Subject to Exclusive/Definitive Taxation
In this area, you will need to declare:
- income from financial investments (06);
- profit sharing (11);
- interest on equity (10);
- others (12).
In all, you must indicate the name and CNPJ of the paying source (in the “others” field, it is possible by CPF and it is necessary to include a description), in addition to the amount earned. You will also have to indicate, initially, whether the beneficiary of these earnings was you or a dependent.
Payments made
There are some payments that allow you to deduct income tax amounts, such as those related to health. There are others that need to be informed for the control of the Federal Revenue, such as real estate rentals.
Goods and law
In this field, you must declare items such as:
- fixed income investments (45);
- land motor vehicle (21);
- house (12);
- apartment (11);
- land (13).
There is a “Discrimination” field, where it is important to report as much data as possible about these elements.
In the case of a property, inform who it was purchased from and when. Also report whether it was funded and which institution funded it. We’ll talk more about real estate declaration later.
Check pending issues
There is the item “Verify Pending Issues”, in which it is possible to check if any information is missing or if any field was filled out inappropriately.
5. Check other modules
There are other modules below the “Declaration Sheets”, such as “Rural Activity”, “Capital Gains” and “Variable Income”. They will need to be filled in if you have activities or movements related to them. There is a “Report Summary” with the information provided, where you can see the tax calculation and other data.
6. Place account for refund
If you have an amount to receive as a refund of IR, you will need to provide an account for the payment to be made. In the item “Report Summary”, option “Tax Calculation”, you will find the fields related to bank, branch and credit account at the bottom of the screen. Just fill them out.
7. Submit the declaration
After checking all your data, just click on “Send Declaration”. Some messages will appear for you to confirm and the system will inform you if you want to save/print a receipt for the document, with summary data.
It is also possible to save the document online, in the option “Save Online” located in the top menu “Declaration”. However, the submission of the declaration is only completed after clicking on “Submit Declaration” and the system notifies that the procedure was successful.
I bought a property in cash, how do I declare?
As mentioned, a property must be declared in the “Property and Rights” form. In it, you will need to choose the code corresponding to its type, such as house (12), apartment (11), living room or suite (15), among others.
The purchase price, which will be informed in the field “Status on 12/31/2018”, must be the actual payment, that is, without updates due to inflation or an appreciation/devaluation on account of the market.
In case of renovation, construction or repair, it is possible to modify the value. This is also true for painting. These expenses need to be released in the year in which they occurred. If this has not been done, it will be necessary to amend that year’s declaration.
You must prove the changes with receipts for individuals (PFs) and invoices for legal entities (PJs). Keep these documents for at least five years after the asset is disposed of, as they may be needed if inspected.
In the “Discrimination” area, include information such as:
- the mode of acquisition of the property, that is, if it was purchased — for information purposes, the person who received the property through a donation must report this;
- the date of that purchase or donation;
- the person responsible for the sale or donation (it will be necessary to enter CPF or CNPJ);
- an important point: as it was acquired in cash, it must be mentioned that it is paid off.
I financed and didn’t finish paying, what do I do?
In the case of a mortgage, you must indicate the amount already paid, which involves the down payment and the number of installments. This is also done in the “Properties and Rights” tab.
Under “Discrimination”, specify acquisition details, such as:
- the fact of being a financed property;
- data on who sold the property;
- the bank where the financing took place;
- the number of installments paid;
- the number of installments left to pay.
How to report ongoing financing?
If you purchased the asset through financing in another year and continued to pay for it in the past year, then the amount you enter must equal the amount already paid up to that period. That is, it is not the total value of the good.
Under “Situation on 12/31/2017”, mention the total amount paid up to that day. In “Situation on 12/31/2018”, state the amount paid up to that date, that is, the sum of what had been paid in 2017 with the installments paid in 2018.
During financing, the process must be done on each income tax return until the asset is paid off. From then on, the value informed will be the total of the property.
Remember to include in “Discrimination”, in addition to the data mentioned in the previous topic, the amount of installments paid in 2018, as well as the installments paid in the previous year (2017).
Where is the income report on Cyrela’s Customer Portal?
On Cyrela’s Customer Portal you can access a series of features, such as the income report on the property purchased. In the “Financial” tab, you will find a statement of the asset, with the total value and the installments paid so far with Cyrela. As for the payment of the loan with the bank, you must contact the financial institution directly.
In this way, you will have easy access to essential information for the Income Tax Declaration. This area is available during the time of submission of this document.
I bought it from someone else. What should I do?
Property acquired by more than one person must be declared by all involved, ie their owners. Each person must inform the amount they paid, that is, that it corresponds to their share of the property. If one holds 50%, it is the amount referring to that proportion that he will declare. Whoever owns the other 50% will also need to do the same.
Do I have to declare property paid off in the previous year?
If you had already been declaring a property paid off in a previous year, just repeat its value in the items “Status on 12/31/2017” and “Status on 12/31/2018”.
Remember that the value must be the same as the deed of the property, except if you have made improvements to it, as mentioned above, or if there are expenses with interest on financing, brokerage and Real Estate Transfer Tax (ITBI). These values must be declared in the year in which they occurred. If you have not done so, you must inform them in a rectifying statement for that same year (when you sent the statement without this information).
And if it’s rented, what should I do?
Anyone who rents a property must inform the amount paid to the lessor in 2018 on the Income Tax return. The Internal Revenue Service usually crosses the lessee’s data with the lessor’s for confirmation purposes. You will need to include:
- Code “70 — Real Estate Rentals”;
- CPF or CNPJ of the lessor;
- total rent paid in the year.
However, remember that whoever signed the lease must declare it. If you share the property with other people, and all are described in the contract, the declaration must be proportional. In other words, you will need to report the amount paid that corresponds to your share. It is worth noting that, in case of rental through a real estate agency, it is possible to obtain a report with the rents paid with it.
Those who receive rent for an asset and use the value to pay for another property must declare these two transactions separately. The amount received as rent, that is, the income will be declared in the form “Taxable Income Received from Individuals and Abroad by the Holder”. The rent payment will be informed in the form “Payments Made”.
Finally, know that the income tax report for Income Tax is an essential document to have at your side when carrying out these operations. In fact, try to get as many reports as possible (from the company, from banks, from the INSS if you are a beneficiary, etc.). This can help you fill in the declaration more accurately. Also remember to find someone knowledgeable in the field to help you with filling details, such as an accountant. That way you prevent yourself from falling into the fine mesh.
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