How to Declare Real Estate in the 2018 Income Tax

Operations such as the purchase, sale, donation, and possession of real estate must be declared in the 2018 Income Tax.


The ownership of real estate that costs more than 300 thousand reais, incidentally, is one of the conditions that oblige the taxpayer to present this year's declaration.

One of the main novelties of the declaration in 2018 are the fields in the program for the transmission of the declaration on complementary information of the property: Municipal Registration (IPTU), address, area, registration and in which registry the property was registered. Completing the new data is optional this year, but will be mandatory in 2019.

The purpose of Revenue is to have more subsidies to identify who is omitting assets. Therefore, it is best to fill in the information, even if it is still optional.

According to tax lawyer Samir Choaib, the "Register" field should only be filled if the property is not registered in the Registry of Real Estate and the taxpayer has some registry that can identify the property, with the details in the "Discrimination". If, however, the property is already registered in the Registry of Real Estate, by clicking "Yes", the "Register" field automatically disappears. In this case, just fill in the fields "Registration of Property" and "Name of Registry" with the information.

The IPTU (registration number in the city hall), address of the property and the area of the property can be found on the IPTU card. If the taxpayer does not have the passport, you can ask for a duplicate of the document in the city hall.

Choaib clarifies that, in the case of houses, only the total area of the land should be reported, regardless of the built area.

In relation to apartments, if the garage has individual registration and IPTU, it should be declared normally, in conjunction with the built area. When the garage is part of the same enrollment of the apartment, then the built area that consists of the IPTU already contemplates the added areas (apartment plus garage). So just inform this area.

How to declare

The properties must be informed in the "Assets and Rights" form of the program that generates the declaration, with the specific code of the property, according to the definition in the deed of the property. Apartments, for example, are declared with code 11, while houses are declared with code 12 and land with code 13.

The declared amount must be only what the taxpayer has effectively paid for the property until December 31, 2017, including, among other possibilities legally admitted, Real Property Transfer Tax (ITBI), as the case may be, as well as interest on the financing and the brokerage fee paid on the purchase of the property.

Therefore, the property must always be declared at the acquisition value, without price updates on account of any market valuations or according to the variation of inflation indices.

There is only one exception that allows changing the value of the property: the construction, renovations, paintings and/or repairs to the property. However, it is possible to add these costs to the value of the property as long as they can be proven through skillful and proper documentation, says Choaib. "Such documentation may be, for example, invoices for legal entities and receipts for individuals, which must be kept in archives for at least five years after the alienation of the property, for presentation in the event of a possible inspection."

These expenses shall be reported in the declaration for the year in which they were incurred. If the taxpayer has forgotten to declare them in the corresponding year, they must be added in the declaration of that year by means of a rectifying statement. This data can not be entered in the later declaration, for example.

In the "Discrimination" field, the following data should be included: if the property was bought or donated, the date of purchase or donation, who was the seller or donor (with CNPJ or CPF), if it was withdrawn and if it was financed. In the latter case the following information should also be included: in which bank the financing was made, how many installments have already been paid and how many remain to be paid.
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