What is a property deduction, who is en titled to it and how to calculate it? Article 220 of the Tax Code of the Russian Federation. property tax deductions

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In Russia, citizens have many different forms of state support. Here you can count not only on benefits and payments, but also on the so-called deductions. They are of interest to many people in the country. Today we have to find out what a property deduction is. This will help you save on the purchase of real estate. But how? And what is required to receive a deduction for property? Having understood all these issues, everyone will be able to achieve the desired result in the shortest possible time.

Definition

What is a property deduction? So it is customary to call the return of part of the money spent on the purchase of real estate on account of income taxes paid in a particular tax period.

Current legislation states that a citizen has the right to a property deduction not only when buying, but also when selling housing or land. In this case, it will be possible to partially or completely not pay income tax on the amount received for the sold property. It is connected withreduction of the tax base for personal income tax by one amount or another.

Most often, property deduction means the first interpretation of the corresponding concept. The population is mainly faced not with the payment of taxes on the sale of real estate, but with the return of money for the purchase of it.

What is provided for

What is a property deduction? This is a reimbursement of part of the costs incurred in the acquisition of real estate. But not everyone and not always can use this right.

Property deductions are available for the following items:

• apartment;
• room;
• townhouse residential block;
• house;
• land for building a house;
• land purchased for residential property;
• shares in listed property.

It will not be possible to reduce the personal income tax base or return part of the money spent for any other objects. This is not provided for by the legislation of the Russian Federation.

Types of property deductions

Buying a home can be done in different ways. This will determine the maximum reimbursement. Someone immediately pays the entire amount under the contract, while someone prefers to arrange a mortgage. In both cases, the buyer is theoretically en titled to a tax deduction.

Property return can be divided into several types:

• main;
• mortgage.

In the first case, part of the funds spent directly on the purchase of housing will be returned. In the second, a citizen will be able to reimburse the interest paid onloan.

Important: when applying for a mortgage, it is allowed to draw up both the main and the mortgage property deduction.

How much can be returned

What is a property deduction? The answer to this question should no longer cause difficulties for citizens. And how much will be able to return the funds in the end? What do you need to know about this?

Article 220 of the Tax Code of the Russian Federation states that a citizen, when buying a home and making the main property deduction, can count on a deduction of two million rubles. The return rate is 13%. Accordingly, you can return a maximum of 260,000 rubles.

The situation is somewhat different with mortgages. The deduction is calculated from the amount equal to three million. This means that the state can return a maximum of 390,000 rubles to the applicant.

If we talk about the sale of housing, then a million is allowed to reduce the base for personal income tax. This is the maximum offered by the state.

Important: you cannot demand more money than a citizen transferred income taxes for a particular tax period.

When the right or time for registration arises

According to article 220 of the Tax Code of the Russian Federation, the right to a property tax deduction arises for a citizen in the year in which he made the corresponding transaction. But it can be realized within a limited period of time.

The limitation period for property deductions is 3 years. This means that after three years from the date of sale or purchase of real estate, a person will not be able to apply to the authorized bodies for compensation.personal income tax.

In Russia, you can apply for a tax deduction for several tax periods at once (1 period=1 year). Namely, for all three years at once. Very convenient, especially when it comes to paying off a mortgage.

Basic conditions

What is a property deduction is now clear. But how to get it? And who is legally en titled to it?

There are conditions that must be met when claiming a tax deduction. At the moment they look like this:

1. Applicant must be a resident of the country.
2. Purchased housing must be located on the territory of Russia.
3. Citizen must have official income subject to 13 percent income tax.

At first glance, it seems that pensioners and the unemployed cannot exercise the right under study, even if they have purchased property. In fact, this is not entirely true.

Important: Parents, guardians and adoptive parents can claim a tax deduction for housing registered for a child under 18.

Opportunity for the elderly

A lot of questions are raised in Russia by the property deduction for pensioners. If an elderly citizen works, he enjoys the studied right on a general basis. Otherwise, problems are not ruled out.

The right to a property deduction for pensioners is provided with the possibility of transferring personal income tax. This means that an elderly non-working citizen can apply for a deduction taking into account the income taxes paid over the past three years.

What's insideincludes

Everyone should understand what the property deduction includes. More precisely, what costs will be taken into account when registering it.

If an apartment is purchased, a person can include in the expenses:

• the amount specified in the PrEP;
• buying items for repairs;
• funds paid for repairs.

It happens that people do not buy apartments and rooms, but houses or land plots for individual housing construction. In this case, the following amounts will be considered expenses:

• for developing a house project;
• for building materials;
• for finishing materials;
• paid for the purchase of the residential building itself;
• given for construction and finishing works;
• for conducting communications to housing.

All listed expenses are documented. Otherwise, they will not be taken into account. In both cases, when applying for a mortgage, interest paid on a home loan will be taken into account.

Important: when making a deduction for the sale of real estate, these costs must also be taken into account.

How many times to ask

Property deduction for an apartment or other property can be issued once. But it happens that the real spending of the buyer on housing is less than the specified limits. In the current situation, it is allowed to draw up deductions for property as much as is required until the maximum amounts allocated by the state are fully spent. But in our case there is one seriousrestriction - the transfer of the balance of the deduction is allowed only for those who bought a home after 2014. If the property was purchased earlier, you will not be able to use the mentioned benefit.

The same applies to the reduction of the personal income tax base for the sale of housing. A citizen can deduct from the profit received the amount of expenses incurred by him earlier, but not more than 1,000,000 rubles. If it is less, it is allowed to transfer the balance of the deduction to the future.

If the applicant acquires several objects, he can draw up a deduction for one of them, and transfer the balance, if any, to another property. Very convenient!

Rules for counting when buying

How to calculate the property deduction? "Entertaining mathematics" must be treated very carefully. And then everything will work out.

To find out how much you can return for buying a home, you need:

1. Calculate all of the above costs incurred by the buyer/seller.
2. Compare the amount received with the limits set by the state. If the amounts are larger, you will have to take 2 or 3 million rubles as a base for a regular purchase and a mortgage, respectively.
3. Calculate all paid income taxes for the selected tax period.
4. Multiply the amount of expenses by 13 percent.
5. Compare the figure obtained in the previous step with the amount of income taxes paid.

All that's left now is to figure out how much you can get back. If the amount of the deduction is more than the paid personal income tax, the entire income tax for a particular period is refunded, and if less - the fullthe amount of the deduction received.

Important: in order not to make mistakes with the calculations, you should use tax calculators. They help, free of charge and quickly, using the data specified by the user, to calculate what the size of the property tax deduction will be in this or that case.

About authorized bodies

You can make a deduction only in certain places. At the moment, you can apply with the appropriate application through:

• multifunctional center;
• local tax office.

If necessary, it is allowed to send an application to the Federal Tax Service by mail, but this step significantly slows down the process.

You can apply for a deduction at the place of employment. That is, request it at work. This is not a very popular technique, but everyone should remember it. In the course of its implementation, no personal income tax will be paid on the amount of the deduction from a person’s earnings.

Important: if a citizen decides to apply to the Federal Tax Service directly, the applicant's place of residence must be taken into account.

Spouses and deductions

It is not uncommon to buy real estate in marriage. What should husbands and wives know before making a deduction?

If the housing was purchased during marriage and with common money, and the second spouse is the owner of the corresponding residential property, both the husband and wife have equal rights to the deduction. However, there is one caveat.

In order to eliminate problems when applying for it, you must submit an application for the distribution of the property deduction between spouses. Husband and wife mustthink about how they demand it. It may be more profitable to issue a deduction for one of the spouses or in equal shares.

If housing is bought with the money of only a husband or wife, the second spouse is not a co-owner of the object, you should not count on equal rights regarding the deduction. They are simply not provided for by the legislation of the country. An application for the distribution of property deduction between spouses in this situation is not submitted. Instead, it is enough to fill out a regular application for "compensation" for the purchase of a residential property.

Quick Design Guide

Claiming a housing deduction is not as difficult as it may seem, but the process requires advance preparation. What is needed to achieve the goal?

In our case, it is recommended to act like this:

1. Make a deal to buy or sell a home.
2. Fill out the 3-personal income tax declaration. Property deduction without this document will not work. A tax return is usually filled out for the tax period, you can immediately enter data for three years into it.
3. To carry out the formation of a package of documents necessary for further servicing a potential applicant.
4. Apply to the authorized body at the place of residence with an application and a tax return.
5. Wait for a response from the Federal Tax Service.

Further everything will depend on what decision is made by the tax authorities. If they agreed to provide the opportunity, it will be enough for the citizen to wait for the fact of transferring money to the account specified in advance. property deduction formortgage interest or PrEP is not issued in cash.

Otherwise, you need to investigate the reason for the failure. If it can be corrected, it is recommended to do this within one month - then you will not have to re-apply to the authorized service for the appropriate service.

Rules for completing the declaration

Everyone can file a tax return to deduct for an apartment or house. You can do this manually or with the help of special programs. It is best to use the second method. It will avoid most of the problems associated with filling out the form. The "Legal Taxpayer" program was recognized as the best.

Declaration 3-NDFL for property deduction for 3 years is drawn up in three separate documents.

The form of the document must match the forms used in the year in which the person applies for "compensation". As a rule, it changes from year to year. This must be carefully monitored.

In the prepared certificate, you must specify:

• all expenses incurred;
• taxable income;
• data from pre-prepared documents.

As a rule, if a person uses a program for generating tax returns, he will simply need to fill in the fields on the "D1" form, then select the type of deduction and fill out the form again. The completed declaration will be generated automatically.

Important: if there are problems with the preparation of the 3-personal income tax form, you can ask for helpto intermediaries. Private companies often help with deductions, but at an additional cost.

Main papers

Do you want to get a property deduction? What documents will be required to complete the task?

The list of references to achieve the necessary goal is different every time. First, let's look at the main documents. Confirmation of the right to a property deduction is carried out with the help of title documents for housing, as well as receipts indicating expenses incurred.

Citizen will need:

• passport;
• application form;
• tax return;
• income certificates;
• contract of sale or mortgage;
• receipts and checks indicating applicant's expenses;
• USRN statement.

These are mandatory certificates, without which it will not work. If you took out a mortgage, you will additionally need to prepare a loan repayment schedule.

For families

How to fill out a property deduction declaration is now clear. And what exactly is required for registration thereof?

In addition to the above certificates, family people must attach:

• marriage certificate;
• marriage agreement;
• birth or adoption certificates for children;
• any certificate indicating that the purchase was made from the personal money of the husband or wife.

Usually, all of these documents are provided along with copies. When sending them by mail, you will have to certify photocopies with a notary. Do not send originals.need. They will be required only for personal contact with the authorized body.

How long to wait

How long does it take to apply for a property deduction and process it? There is no definite answer, but this is far from the fastest process. Applicant needs to be patient.

On average, the tax authorities are responsible for submitted deduction applications for up to two months. It is also worth considering the time to transfer money to the applicant. On average, this operation takes another two months.

Reason for refusal of deduction

The study deduction is sometimes denied. Such a decision must have a written justification.

Most often, the Federal Tax Service refuses to issue deductions if:

• errors were made when filling out the declaration;
• a person does not have the right to a deduction for one reason or another;
• provided certificates are expired or recognized as fakes;
• citizen brought an incomplete package of certificates required to request a refund;
• Deduction expired.

A citizen can always clarify the reason for the refusal of the deduction in the tax authority. If "errors" can be corrected, this should be done as soon as possible. Otherwise, it will not be possible to reimburse the money for the purchase or sale of housing.

If a citizen doubts his abilities, he can always turn to intermediaries for help in making deductions. You can also consult with tax officials regarding your case. They arebe sure to tell you how to act at one stage or another of the deduction.