Landlords with leases of two years or more must report to the tax authorities by this Wednesday as long-term contracts that are eligible for an IRS reduction from the 28% rate.
This is a tax relief that is granted to landlords who enter into longer lease agreements, the greater the longer the duration of the contract or the period of its extension.
To take advantage of this benefit of lowering the IRS rate that increases over time, landlords cannot include rent in the IRS because they have to tax those incomes with an autonomous rate.
A report to the Tax and Customs Administration (AT) through the Financial Portal for the purpose of reducing the rate must be made when it comes to signing a new long-term lease or the first renewal.
Similarly, termination of contracts must also be reported to the Tax and Customs Service (AT) by the deadline of 15 February.
This post is relevant so that the landlord’s tax situation can be taken into account when filing the IRS, with the AT stating that this “must be done in the first year in which the lease is eligible to use the IRS rate reduction. 72 of the IRS Code” and this “may occur in the first year of commencement of the contract or in the first year of commencement of renewal.”
The example provided by AT mentions that in a contract that starts in 2022 and lasts for two years (starting on 01/05/2022 and ending on 04/30/2024), the landlord must proceed to this environment. , to the “report on the duration of long-term contracts” for the specified contract, in order to be able to attribute the specified reduction in the IRS rate.
“If the contract is not terminated, but extended (from 01/05/2024 to 04/30/2026), it must again be the object of the “Message” until February 15, 2025, “for the registration of its new duration as a result of the renewal that has taken place at the same time”, clarifies AT.
It should be recalled that the reduction of the IRS rate from the 28% rate is two percentage points in contracts with a duration equal to or greater than two years and less than five years; five percentage points for contracts for a period of 5 to 10 years; and 14 percentage points for contracts of 10 to 20 years.
In the first two cases, the discount increases by the same amount with each renewal, but no more than 14%.
For contracts with a duration or extension of more than 20 years, the rate can be reduced to 10%.
Author: Portuguese
Source: CM Jornal
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.