What is Real Estate Accounting?

Real estate accounting is an accounting specialty focused on transactions and operations in the real estate sector. It involves the financial management of properties, asset evaluation, tracking of expenses and revenues, and compliance with specific tax regulations. Specialized professionals ensure that companies in the sector comply with laws and optimize their financial results.

The Role of the Accountant in the Real Estate Sector

The accountant specialized in the real estate sector plays a crucial role in the financial management and compliance of companies. They ensure the fulfillment of legal and tax obligations and assist companies in optimizing their results and growing in a competitive market.

Efficient Financial Management

The accountant records all financial transactions, oversees the purchase and sale of properties, rental payments, receipt of brokerage commissions, and the management of expenses associated with the properties.

Tax Optimization

Specialized accountants identify legal deductions and correctly apply the specific tax regulations for the real estate sector, choosing the most suitable tax regime to reduce the tax burden of companies.

Legal Compliance

The real estate sector is subject to rigorous regulations. The accountant ensures that all operations comply with applicable laws, avoiding legal and tax problems in the future.

Strategic Decision Making

The accountant provides valuable financial information that aids in strategic decision-making, such as identifying investment opportunities and evaluating the performance of properties.

Transparency and Accountability

The accountant ensures that all transactions are recorded transparently, promoting trust among tenants, investors, and other involved parties.

Monitoring Economic Cycles

The accountant monitors economic trends and helps companies adapt to different scenarios, providing financial stability even in challenging times.

Technological Integration

Proficient accountants use specific software systems for the real estate sector, facilitating financial management and report generation.

Taxes Paid by a Real Estate Agency

Real estate agencies are subject to various taxes, including:

• Income Tax (IR): Calculated based on taxable profit.
• Social Contribution on Net Profit (CSLL): Levied on the profit of companies.
• Service Tax (ISS): Applicable to brokerage services.
• Rural Land Tax (ITR): For rural properties.
• Urban Property and Land Tax (IPTU): For urban properties.
• PIS/PASEP and COFINS: Contributions on the company’s revenue.

Real Estate Agency Taxation

Taxation varies according to the legal structure and the chosen tax regime:

• Real Profit: Taxes paid based on actual net profit, considering all income and expenses.
• Presumed Profit: Taxation based on a presumed profit margin, defined by the Federal Revenue Service, with a simplified tax burden.

Accounting Obligations of a Real Estate Agency

Accounting obligations include:

• Financial Statements: Preparation of the Balance Sheet and Income Statement (DRE).
• Cost Accounting: Proper recording of acquisition and maintenance costs of properties.
• Daily Ledger: Recording of all financial operations.
• Tax Declarations: Submission of SPED Contábil, Dimob, ECF, and EFD-Reinf.
• Income and Expense Recording: Recording of all income and expenses related to the company’s operations.
• Document Archiving: Maintenance of accounting and tax documents according to current legislation.

At Conmax, we are ready to be your partner in real estate accounting management, offering specialized consultancy to optimize your tax burden and, essentially, ensure legal compliance. Count on us.