jewel heirs, works of art and other goods will not need to declare earnings in the Income Tax

STF decision exempts capital gains on these assets

Family Jewelry Heirs, works of art and donated or inherited objects that have increased in value over time have gained an important ally in the fight against the tax authorities: the Federal Supreme Court decided that the Union cannot charge Income Tax on capital gains arising from the appreciation of assets transmitted by inheritance or donation.

Lawyer Rafael Serrano, tax partner at CSA Advogados, explain what, in this case, the taxable event for the IR is the difference between the value attributed to the asset in the deceased's previous income tax returns and the value attributed to the asset when transferred to the heirs after death.

The taxpayer can decide whether to make the declaration at the historical value or at the current value, but at some point the difference enters the tax account. “The decision of the STF has practical implications, because the IR taxation impacts, up front, in the distribution of these goods in the inventory”, the firm.

In addition, non-payment of income tax on gains from donated and inherited goods is already a practice in family declarations. “What the STF did was reinforce understanding and bring more legal certainty to heirs who receive assets via succession”, complete.

The decision may help taxpayers decide on any other donated or inherited property that has increased in value over time., as collections, real estate, among others.