Apartment Registered to a Child: How Parents Should Report Rental and Property Sale Income

Residential buildings. Photo: Novyny.LIVE

If a minor child is the owner of an apartment or other real estate, and the parents rent it out or sell it, the income belongs to the child. Even when the guardian actually receives the money, the minor owner's information and tax identification number must be reported in the tax filings. This clarification was published by the tax service.

This is reported by Novyny.LIVE with reference to the State Tax Service of Ukraine.

Advertisement

Whose information to provide if the property belongs to a child

If an apartment, house, or other property belongs to a minor child, and income from its sale or rent is accrued in the child's favor, the child's information must be indicated in the tax reporting.

This rule applies even when one of the parents or a guardian actually receives the funds. The mere fact that the legal representative received the money does not change who the income belongs to.

Therefore, the documents must include the minor owner's surname, first name, and patronymic, as well as their registration number of the taxpayer's account card (RNOKPP).

In which tax documents to indicate the child's data

The tax service explained that information about the income of the minor owner must be reflected in the relevant annexes to the tax reporting. Which specific document to use depends on who acts as the tax agent:

Annex 4DF — to the Tax Calculation submitted by legal entities and other tax agents.

Annex FIZ-4DF — to the Calculation submitted by individual entrepreneurs and persons conducting independent professional activity.

In both cases, the data of the minor child who owns the property and in whose favor income was accrued should be indicated. Replacing that information with data about the guardian solely because they received the money is incorrect.

What to consider before selling or renting a child’s property

Tax authorities also remind that minors have specific features regarding the exercise of property rights. Depending on the type of transaction, the consent of legal representatives and the permission of the guardianship and care authority may be required to dispose of the real estate.

In addition, tax agents must correctly reflect accrued and paid personal income in their reporting, and also fulfill obligations regarding withholding and remitting taxes.

Earlier Novyny.LIVE reported that Ukrainians who lived in non-privatized apartments may face difficulties when applying for compensation for damaged or destroyed housing. Changes have been proposed in the Verkhovna Rada that are intended to allow privatization of property that became uninhabitable due to hostilities. This could open the door for residents to participate in the eRecovery program.

Novyny.LIVE also reported that in Ukraine you can find apartments and private houses priced up to 20 000 dollars. Among the offers there is even three-room housing, but the price depends on the settlement, area, and condition of the property. Before buying, it is important to consider possible costs for repairs and utilities.