Rental fees in pre-filled tax return 730: the amount needs adjustment

Declaration of Rental Income in Tax Return Forms

When it comes to declaring rental income in your tax return, it’s important to note that if you don’t opt for the flat-rate tax (cedolare secca), the rental income must be declared in the 730/2024 tax return form.
Rental income is subject to personal income tax (IRPEF) and as such, it needs to be reported correctly.
However, one common issue that arises is related to rental contracts that are subject to annual Istat adjustments for inflation.
In such cases, when using the precompiled tax return form, the information provided by the Revenue Agency may not be accurate.

Deadline for Filing Tax Returns

The tax filing season is in full swing, and not all taxpayers have submitted their income tax returns yet.
You can choose to file either the 730/2024 form or the Redditi model.
It’s important to remember that the deadline for submitting the 730 form this year is September 30.

For those who have already submitted the 730/2024 form, it’s no longer possible to cancel the submitted declaration, as this option was available only until June 24.
In case of omissions or errors in the submission, taxpayers will need to file an integrative 730 form through a tax assistance center (CAF) or a qualified professional by October 25, or submit a corrective declaration using the Redditi PF form.

Deductible Rental Expenses

One of the most crucial aspects for taxpayers is related to deductible and allowable expenses, which include all the costs incurred in the previous tax year that entitle them to an income tax discount.
This information should be reported in Section E of the tax return form, where expenses such as rent payments are also included as they qualify for a tax deduction.

Rental Income Amount and Adjustment

For landlords with properties leased under the flat-rate tax scheme, the monthly rent remains constant throughout the contract’s duration, as it’s not subject to Istat adjustments.
However, for landlords with leases outside this scheme, the rent may be adjusted annually based on the Istat index.
This means that the amount payable monthly by the tenant may increase if inflation rises, resulting in a higher income for the property owner from one year to the next.

For further information, read also Rent Rates Increase Due to Istat Revaluation, 2023 Overview

Rental Income in Precompiled Tax Forms

When using the precompiled 730/2024 form, special attention should be paid to rental contracts not under the flat-rate tax scheme.
The rental amount provided by the Revenue Agency in the precompiled form may not reflect any Istat adjustments.

For more details, check out Deductions in Simplified 730/2024 Model, Guide to Modifying Section E

How to Update Adjusted Rental Income

If the annual rent increases due to Istat adjustments, this change will not be automatically reflected in the precompiled 730 form.
In such cases, taxpayers need to manually adjust the rental amount in the declaration to align it with the updated Istat index.

Reporting Rental Income in Tax Forms

The relevant section for reporting rental income in the 730 form is Section B, specifically lines B1 to B6.
These lines require details such as the cadastral income of the property, the property’s use code, the possession period in days, the ownership percentage, and the rental code.

For more information, don’t miss Guide to Rental Income Reporting in Tax Form Section B