Tax deduction for mortgage interest. property tax deduction

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

Today, not every citizen has enough free cash to buy an apartment. Many have to use loans. Targeted loans give the right to claim a tax deduction for mortgage interest, provided that the documents are executed on the territory of the Russian Federation.

Concept

An asset deduction is a benefit that allows you to save money on your mortgage. When a person buys real estate, he can return the paid personal income tax in the amount of 13% from the budget. The maximum amount is limited to 2 million rubles. If property is more expensive, then only 2000 x 0.13=260 thousand rubles can be received from the state. And those who have not fully accumulated this amount, since 2014, are allowed to receive additional funds from another property. Mortgages also have the right to receive compensation in the amount of 390 thousand rubles. (13% of 3,000 thousand rubles) from interest paid.

Terms of compensation

Compensation can only be obtained from a targeted loan. That is, inthe agreement with the bank must indicate that the funds were issued for the purchase or construction of housing in the territory of the Russian Federation. A deduction from expenses can only be received from the same property on which the main property is registered, if the transaction was concluded before 2014. Funds must be spent for the specified purposes. The interest deduction is no longer tied to the principal, it can be applied to another property.

Law

Until 2013, the property tax deduction for mortgages was provided in the amount of interest paid. Since 2014, amendments to the code have come into force, which introduced a limitation in the amount of compensation of up to three million rubles for transactions that were concluded after 2013. A tax deduction for mortgage interest is provided in addition to the principal for the body of the loan. It is also limited to 2 million rubles.

Nuances

It turns out that citizens seem to have a bonus. But they cannot use it, because the tax deduction for mortgage interest is limited. Legislative changes are designed to correct this shortcoming. The opportunity to receive additional compensation is, of course, good. But the question is, how much can an average Russian really buy apartments in his lifetime? The government assumes that in the near future mortgage rates will drop to 12-13%, which, together with the innovation, will spur demand in the real estate market.

Tax deduction (mortgage): list of documents

Because the title deeds were handed in with the firstby filing a declaration, then for registration of compensation you need to collect and provide:

• declaration 3-personal income tax;
• copy of passport;
• certificate of income level 2-personal income tax;
• compensation claim;
• loan agreement;
• receipt of payment or account statement;
• repayment schedule;
• certificate from a credit institution on actually paid interest.

This package of documents must be submitted to the tax office at the place of residence.

Shared property

If the apartment was purchased by several owners before the end of 2013, then at the first submission of the declaration, an application is made to distribute the deduction between all owners. In the same ratio, compensation of the principal amount of the debt and interest is distributed. For transactions completed after 2014, this statement is updated annually.

Shared ownership

Mortgage tax deduction starts from the year when the balance of the principal compensation is received. Previously, it is pointless to deal with this issue. In the case of fractional ownership of property, the deduction is distributed in the same ratio as indicated in the certificate of ownership.

How do I get a mortgage tax refund?

Interest compensation is calculated based on the amounts actually paid. Therefore, every year you need to take a certificate from the bank, which describes the scheme for repaying the debt. Based on this document, a 3-NDFL declaration is issued.

Compensation amount

For objects purchased before the end of 2013, the deduction can be issued for the entire amount of expenses. Transactions entered into since 2014 are subject to different rules. If the cost of paying interest for the entire period of the agreement does not exceed 3 million rubles, then you can get a tax deduction for the mortgage for the entire amount. Otherwise, only the agreed 300 thousand rubles are compensated. If the loan amount exceeds the cost of the apartment, then the interest refund will be calculated based on the purchase costs in the total amount of the contract. Therefore, the maximum amount is 260 thousand rubles. when buying real estate with your own money, and when applying for a mortgage - 786,700 rubles

Mortgage tax deduction calculator

• The cost of the apartment is 1.7 million rubles. Deduction amount: 1.7 x 0.13=221 thousand rubles. (loan body only).
• The cost of the apartment is 4 million rubles. The amount of the main compensation: 2 x 0, 13=260 thousand rubles

The remaining 200 thousand rubles. are not deductible. Only the amount spent on the purchase of an apartment is taken into account. The resulting figure is divided between the shares in a certain ratio. If a simultaneous transaction is carried out (buying a new apartment and selling an old one), then this money can be used to pay personal income tax from the sale of property.

Who can be compensated

The military mortgage tax deduction is an income tax refund. Therefore, compensation can only be received by citizens of the Russian Federation who receive official income and pay withhim personal income tax in the amount of 13%. The same applies to non-residents who work on the territory of the Russian Federation for at least 6 consecutive months a year. If the property is registered in the name of a minor child, then the deduction can be received by the parents. Pensioners who have a source of income in the amount of 5534 rubles / month. (excluding benefits) may also apply for compensation. Women who are on maternity leave can receive money after they return to work. If housing was purchased earlier, then documents can be issued separately for income, before and after the holidays. If in the current year the salary is not enough to receive a deduction, then this money does not disappear anywhere. They are simply carried over to the next calendar period. This situation is often found in people who officially receive only the minimum wage, and the rest of the amount in an envelope. There are even situations when the mortgage is actually paid, but the compensation is not issued, since the income is minimal. How do I get a deduction?

The first option is to contact the tax office

From January 1 to April 30 of the period following the accumulation of the amount, the following documents must be submitted at the place of permanent residence:

• passport (residence permit);
• declaration;
• certificate from the employer 2-personal income tax;
• account details;
• TIN;
• contract of sale.

All papers are provided in original and certified copies. An application for a deduction is written on the spot. Documents are considered within 3 months. In rare cases, the taxcan call a person to clarify questions or obtain additional information. If approved, the due amount of the deduction will be credited to the specified account within 30 days. First, the body of the loan is payable, and then the interest. But it is better to indicate both amounts in the declaration from the first period, so that later the tax officials would not have any questions.

There is no statute of limitations on documents as such. Even if the apartment was bought five years ago, money can be received from the accumulated income for the past period by submitting a declaration in advance. If the mortgage was issued in a foreign currency, compensation is still paid in rubles at the rate of the Central Bank, as of the date of payment.

The IRS may refuse to receive a payment if:

• property is acquired in the name of the employee at the expense of the employer's money;
• part of the cost was paid by the Young Family program, military mortgage, maternity capital; in this case, the deduction can be made only on the amount of own money;
• transaction parties – related parties: children; parents, grandchildren, spouses;
• not all documents provided.

Second option - at work

Tax deduction when buying an apartment is issued as non-payment of personal income tax from wages. To use such a scheme, you need to obtain a certificate from the inspection on the right to a benefit and provide it to the employer along with the following documents:

• Property Registration Certificate;
• contractsdeal processing;
• application for compensation;
• receipt of cash from seller.

These documents are given to the employer once every 12 months for compensation. If a person has changed several jobs, then a deduction can be made at a new place only from the next calendar year.

Example

In 2014, a person bought an apartment worth 7 million rubles, of which 3 million rubles. were paid for by a loan issued for 13 years. The amount of accrued interest is 1.5 million rubles. The income of an individual for the same period amounted to 900 thousand rubles.

The body of the loan exceeds the maximum amount that can be deducted. Therefore, 2 million rubles are used for calculations. The compensation amount will be:

2,000 x 13%=260 thousand rubles - from the loan body; 1,500 x 13%=195 thousand rubles. – with interest.

Amount of tax withheld: 900 x 13%=117 thousand rubles.

The amount of personal income tax paid from wages during the year does not cover the deduction. Therefore, in 2015, a person will receive 117 thousand in compensation. And the balance (143 thousand rubles) is carried over to the future period.

Tax deduction for mortgage interest in the amount of 195 thousand rubles. can be used for 13 years, that is, throughout the entire loan period. This compensation is provided as the commission is actually paid to the bank. Therefore, every year you need to take a package of documents, including a certificate that describes exactly how the debt is repaid, and transfer them to the tax office. This example is suitable for the case of a single apartment owner. If there are several owners or if there is equity participation, then compensation is distributed among all owners in a certain proportion. The due amount is transferred to a bank account, and then the money is sent to pay off the debt on the loan. They are not handed out. Payment documents must be issued to the person who makes the deduction.

In the bottom line

Property deduction allows Russians to offset part of the cost of a mortgage. The maximum amount of compensation is 786.7 thousand rubles. But this money is not being paid out. They are credited to the bank account and used to pay off the balance of the debt.