When the subject is Income Tax, many people get confused, especially when the topic is investments. After all, those who invest know that to ensure their money works in their favor, they need to make more strategic financial decisions.
But the big question arises: how to declare investments on the Income Tax without complications? The good news is that, although the process may seem a bit complex at first glance, it is much simpler than it appears. And understanding the details can make all the difference when it comes time to file the declaration.
If you are one of those who think that declaring investments is only for those with great fortunes or million-dollar profits, I can assure you that this idea is far from reality. Anyone who has made any type of financial investment, whether in a savings account, the stock market, investment funds, or even cryptocurrencies, must declare.
And the truth is that, by understanding the basics of how Income Tax deals with investments, you can avoid headaches in the future, such as fines or the need to amend the declaration.
Now, let’s simplify this process and understand, in a practical way, how you can declare your investments correctly, without stress and without forgetting any details. Get ready for a comprehensive guide that, in the end, will make you more confident when finalizing your declaration!
The Need to Declare Investments
First, it is essential to understand that the Federal Revenue Service requires all income and assets to be reported in your Income Tax return, and this includes investments.
It doesn’t matter if the amount is large or small, what matters is the financial movement, since all profit or gain generated by your investments needs to be taxed according to the rules established by the Revenue Service. Ignoring this detail can result in future problems, such as incorrect tax withholding or even fines for omission of information.
The big question that arises, then, is: “how to know what to declare and what not to declare?” The first step is to have a good overview of the types of investments you have, so you know how to handle them when it’s time to file. Some investments, such as savings accounts, for example, have a simpler tax treatment, while others, like stocks and real estate funds, require a bit more attention.
The good news is that, with the correct declaration, you can even offset losses from previous years, which can result in a significant reduction in the amount to be paid.
Organizing Your Information: Which Investment to Declare?
Now that you understand the importance of declaring your investments, it’s time to learn how to organize the information for an efficient declaration. The most common investments that need to be declared include:
- Savings and Savings Account Income: Although savings income is exempt from Income Tax up to a certain limit, it still needs to be reported on your tax return. The amount of the earnings must be reported in the “Exempt and Non-Taxable Income” section.
- Stocks and Real Estate Funds: Investments in stocks and real estate funds (REITs) have specific taxation rules. The profits obtained from the sale of shares or real estate fund units are taxed at a rate of 15%, but only if the amount sold exceeds R$ 20,000 in the month. Otherwise, the sale is exempt. For real estate funds, it is also important to declare the income received throughout the year, which is taxed monthly.
- Investment Funds: Each type of fund has its own particularities. Equity funds, multi-market funds, foreign exchange funds, and others must be declared in the specific “Assets and Rights” section. It is important to accurately calculate the income of each fund, as taxation varies according to the type of fund and the investment period.
- Cryptocurrencies: Those who invest in cryptocurrencies need to declare the transactions made during the year. The Federal Revenue Service requires that transactions, even if exempt from taxation, be reported. Moreover, any gain obtained from the sale of cryptocurrencies that exceeds R$ 35,000 is subject to taxation.
- Rental Income and Properties: If you have rental properties, the amounts received from rent must be reported in the “Taxable Income Received from Individuals and Foreign Sources” section.
How to Fill Out the Income Tax Return
With all the information gathered, it’s time to fill out your Income Tax return. Let’s understand, step by step, how to include your investments in the declaration:
- Access the Federal Revenue Program: The first step is to download the Federal Revenue program or access the online version. Next, you should start filling out your declaration, following the system’s own instructions.
- Report Your Assets and Rights: In the “Assets and Rights” tab, you need to list your investments. For example, if you have stocks, you must report their total value on the date of the declaration. If you have investment funds, you must report the account balance at the end of the year.
- Declare the Income: For the income, you should go to the “Exempt and Non-Taxable Income” section (in the case of savings and some types of funds) or “Taxable Income Received from Individuals and Abroad” section (in the case of rentals, for example). Remember to add up all the income received from each type of investment to ensure that no amount is missing from your declaration.
- Attention to Capital Gains: If you have sold any stock or property, you must report the capital gain obtained. Remember that there is an exemption from Income Tax for the sale of stocks, as long as the amount does not exceed R$ 20,000 per month. Otherwise, the tax will be calculated based on the profit obtained.
- Tax Calculation: When entering the values, the system will automatically calculate the amount of tax to be paid. If you have paid taxes in advance or offset any losses from previous years, the system will already deduct these amounts.
- Review Everything: Before submitting the declaration, conduct a thorough review to ensure that all information is correct. Make sure that all investments have been properly reported and that the income matches the statements and documents you have.
And if I have forgotten some investment?
Don’t worry. If you realize that you forgot to declare an investment after already submitting your declaration, you can amend the declaration. To do this, simply access the Federal Revenue Service and correct the information. However, remember: the sooner you make the correction, the lower the chances of falling into the fine mesh.
Declaring Right is Ensuring Peace of Mind
Declaring your investments on your Income Tax return may seem like a challenge at first, but with organization and attention to detail, the process becomes much simpler than it appears. By ensuring that all your investments are correctly reported, you avoid problems with the Federal Revenue Service and keep your financial life in order.
Remember that transparency is the key to a smooth and surprise-free declaration. So, take this moment to review your finances, check each investment you made during the year, and ensure that all income is properly recorded. This not only avoids problems with the tax authorities but also demonstrates your commitment to financial organization.
Finally, if the task still seems a bit difficult, don’t hesitate to seek the help of a specialized accountant. Often, a professional can make all the difference, ensuring that your return is done accurately and preventing you from missing any important deductions. With the right information and a little patience, your tax return will be done efficiently, and your year 2025 will start without any tax worries!