Many have doubts about how to declare personal income tax, in fact many people do not even know the need to quote the amounts in the Personal Income Tax Return. Mention of such resources is mandatory, but there is a correct way of describing values. Remember: in case you have taken personal loan last year, this year you will have to mention the amount borrowed.
First we have to understand that any and every loan over $ 5 thousand has to be listed in the annual statement. There is a space for this action. This is the field “Debts and Real Reals”.
How to declare a loan in the Income Tax
In addition to the value information, the nature of the money, along with the creditor’s data, such as name and CPF or CNPJ number, must be placed. The form of payment of the loan will have to be completed in the statement. The debt balance also can not be overlooked by the declarant. Incidentally, this last information goes in the field “Situation”.
If the personal loan or financing obtained served to purchase some asset, such as a car or a property for example, the purchased item will be placed in the “Assets and Rights” field. An important detail, which can not be overlooked in any way, is that in case of loan between people (between individuals as friends, relatives and relatives), if there is an increase of interest on the borrowed money it should be declared, this mention is mandatory.
“The fields are for people who borrow from financial institutions that must be remembered in the Income Tax statement with which a parent who lends to a child any amount that exceeds $ 5,000, that information needs to be included in the statement “. It is very basic, the data of who passed the amount, regardless of the connection you have with the one who got the money. See also: How to declare loans on Income and Taxes.
When not to declare loan in the IRPF?
But, there is another situation that does not need to declare the loans . If a person takes out a personal loan and takes it out in the same year, the declarant will be free of the need to mention the amount in the personal income tax return.
What is the reason for having to declare personal income tax? Well, the reason for having to mention the financial operations is to make sure there are no discrepancies in relation to the increase of the declarant’s assets.
Make the declaration to the IRS
Finally, let us recognize that the job of filling in is not one of the most complicated, there are few fields. When filling in the fields be careful not to make any mistake when sending the declaration to the Internal Revenue Service, otherwise you will have to give some explanations. Not to mention that the non-declaration of loans can contribute to the taxpayer falling into the fine mesh.
So, take a lot of attention when making your personal income tax return, and be sure to put all the information related to the loan you have taken into banks, financial institutions and credit companies.