For those who have a tax credit derived from unreceived rental payments arrives there guide for the recovery of sums with the model 730/2024.
What happens if I sign a regular rental contract, but the tenant doesn’t pay the rent? Do I still have to pay taxes? How can I recover them? L’article 26 paragraph 1 of the TUIR regulates this case and allows you to obtain a tax credit for taxes paid on unreceived rental payments.
The Revenue Agency clarifies how to obtain the tax credit for unearned rent and the methods for obtaining the tax credit.
that’s how redeem the tax credit for rent not received
What taxes can be recovered for unpaid rent?
In the Guide to the 2024 tax return the Revenue Agency specifies that the lessor, starting from 1 January 2020, does not subject to taxation the rents not received, but to obtain this relief he must first order eviction for non-payment or provide with apayment order.
Once these operations have been carried out, you do not pay taxes on the fees not received, but on the revalued cadastral incometherefore, as if the property were not rented.
Furthermore, the Agency underlines, after the judicial measure validating the eviction can recover through tax credit the taxes paid on rents that were never actually received.
Revenue Agency Guide
Tax Credit Recovery Agency Guide
How to recover the tax credit for rent not received in the 730/2024 form
How can I recover the tax credit for taxes paid on uncollected rental payments? The tax credit is used in compensationtherefore going to download the sums subject to credit from taxes to be paid.
We remind you that rental payments for residential properties not collected by the lessor in the relevant tax periods and received in subsequent tax periods are subject to separate taxation, except for the option for ordinary taxation. According to article 21 of the TUIR, these fees must be indicated in the line D7 of form 730/2024 together with the sums received for reimbursement of taxes or charges.
To determine the tax credit accrued by the taxpayer it is necessary settle the tax return of each of the years for which, based on the jurisdictional provision validating the eviction, higher taxes resulting from uncollected rents were paid.
The tax credit thus calculated must be indicated in the first useful statement following the provision in which the tax credit is recognized and no later than ten-year ordinary limitation period.
However, the taxpayer can opt for a refundfor example in the case in which he does not have fiscal capacity. In this case he must propose refund request to the Revenue Agency within the 10-year limitation period.
In the event that the taxpayer subsequently manages to collect the rental payments, he must declare the amounts themselves so that they are subject to taxation again.
In summary, it is possible to obtain a refund of the taxation incurred in relation to unpaid rent, however it is necessary to have the following documents available when you want to use the tax credit or submit a request for reimbursement:
- eviction notice for default or payment order;
- final sentence validation of eviction for arrears for tax credit purposes;
- tax returns from previous years from which the income relating to uncollected rent is declared.
