How to include real estate sales in the KPiR?
A company wishing to sell real estate constituting a company's fixed asset must properly document and record this transaction.
Real estate sales and revenues
The act on personal income tax clearly defines which income constitutes income from conducted business activity. Sources of knowledge in this regard should be sought in Art. 14 sec. 2 point 1 of the Act, which says that the revenues from the sale of the assets used for the needs related to the economic activity and in the running of special departments of agricultural production are the assets which are:
- fixed assets,
- the components of the property referred to in Art. 22d paragraph. 1, with the exception of ingredients, the initial value of which is determined in accordance with article 5. 22g does not exceed PLN 1,500,
- intangible assets
- included in the register of fixed assets and intangible assets.
As it results from the annex to the regulation on keeping the Tax Book of Revenues and Expenses, the revenue should be included in column 8 of the KPiR - other revenues.
Derogation from the rule
Pursuant to Art. 14 sec. 2c of the PIT Act, income from sale against payment used for business purposes and in running special departments of agricultural production: a residential building, its part or share in such a building, a flat constituting a separate real estate or a share in such a flat, land or share in land or the right of perpetual usufruct of land or a share in such right, related to this building or premises, a cooperative ownership right to a dwelling or a share in such right, and the right to a single-family house in a housing cooperative or a share in such right .
Then, this type of transaction is not shown in the Book of Income and Expenditure.
Real estate sales and costs
As you know, fixed assets are depreciated. The taxpayer has the right to include their depreciation charges in costs. In the case of sale of real estate that has not been fully depreciated, the regulations allow for the remaining part to be recognized in company costs. The appropriate column here will be the column 13 KPiR- other expenses.