Do I need to pay tax when buying an apartment? What you need to know when buying an apartment?

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

Do I need to pay tax when buying an apartment? To give an accurate answer to this question, citizens must be well versed in taxation. Otherwise, the person will face serious problems. Tax arrears are fraught with pen alties. That is why everyone should understand when and for what he needs to pay. What about buying a home? Are there any taxes on the transaction? If yes, in what sizes? Can I count on any bonuses from the state?

How to sell or buy a home

Support for real estate transactions is a very common and popular service. It is needed when buying a new home, and during the acquisition of "secondary". The relevant agencies or notaries with lawyers accompany the purchase and sale of real estate.

Many are interested in how to sell a home. If the seller agreed to support real estate transactions, you can follow the following algorithmaction:

1. Collect documents for registration of sale and purchase.
2. Contact a real estate agency and write a listing for sale.
3. Meet potential clients and discuss the details of the operation. At this point, housing demonstrations usually take place.
4. Go to the real estate agency and sign the contract of sale. If a person independently performs the operation, you can contact a notary.
5. Pay for services from authorized persons.
6. Issue receipt of money for the transaction to the buyer. He is also given an act of acceptance and transfer of housing.
7. Pick up your copy of the "purchase" agreement.

Sounds not so scary. In fact, accompaniment of real estate transactions in Russia makes life much easier. Only this approach to the sale of property involves considerable additional costs.

How to choose a price

Do I need to pay tax when buying an apartment? First you have to understand how the seller sets the right price tag for his property. Much will depend on this.

When putting up a home for sale, the owner must evaluate the "real estate". The audit will reveal the true cadastral value. It is necessary to build on it when selling housing.

Too high a price tag for a property or its undervalued value makes buying and selling unprofitable. Therefore, it is better to make a small margin on the cadastral price.

Who will pay

What taxes do you have to paywhen buying an apartment? And what can Russian citizens expect in general?

Taxation on the sale of housing takes place. Taxes will be paid by the seller of the property. Buyers do not bear any additional costs. So, they do not have to worry about paying taxes for the operation.

Is there any way to get rid of this responsibility? Yes, but not always. Next, all possible scenarios will be considered.

Payments from income

Do they pay tax when buying an apartment? Yes, but this applies directly to the seller. Buyers, as already mentioned, do not incur additional costs for the acquisition of property. Moreover, under certain circumstances, the new landlord may receive a property-type tax deduction. This will be discussed later. Let's deal with taxation first.

Is the sale and purchase of an apartment taxable? Yes. The seller will have to transfer personal income tax to the state treasury. Payment is almost always made. Only occasionally personal income tax in the amount of 13% of the amount under the contract will not have to be paid. Exceptions will be discussed later.

NDFL for non-residents

It is worth paying attention to the fact that a person's lack of citizenship of the Russian Federation does not exempt him from liability to the tax authorities. If there is a sale of housing or other property owned by a non-resident, the person will still need to transfer income tax to the Federal Tax Service.

The only difference is the interest rate. For non-residents of the Russian Federation, today it is 30% of the amount,prescribed in the contract of sale.

Innovations in Russia

Do they pay tax when buying an apartment? Sellers yes, buyers no. This rule is written at the legislative level. Moreover, since 2016, significant changes have been introduced to the Tax Code of the Russian Federation. They began to mislead the population.

The thing is that earlier, when calculating the tax when buying an apartment and selling it, the market value of the property was taken into account. Now this figure has been abolished. From now on, citizens will have to prepare for the calculation of personal income tax under the new rules. The cadastral value of housing will be taken as the tax base.

This means that a lot will depend on this indicator. Yes, the seller can specify any value in the contract of sale. Only the tax authorities will take into account the cadastral price tag when calculating personal income tax. Strong deviations from the corresponding amount up or down will lead to huge costs. This means that such agreements will be unprofitable.

FTS Law

The sale of an apartment below the cadastral value is not a very frequent phenomenon, but it can occur in real life. How will the taxes for the sold property be calculated in this case?

Since 2016, the Federal Tax Services have been given the right to choose the method of calculating personal income tax when selling real estate. Taxes can be charged on the cadastral value multiplied by a factor of 0.7. This principle is not so common.

As a rule, the tax authorities are guided by it when the price of the contractturns out to be lower than the amount obtained by multiplying the cadastral value of the object by a factor of 0, 7.

Accordingly, in this case, the income may be lower than the real costs. The seller will have to think carefully before greatly underestimating the value of their property.

Severe excess

What tax should the parties to the operation pay to the state when buying an apartment? It's about income tax. It is only exempted under certain circumstances.

What if a person puts up a house for sale with an inflated price? A significant increase in the price of the contract compared to the cadastral one is implied.

This is another not the most profitable scenario. Why? It was determined whether it is necessary to pay tax when buying an apartment. But to what extent is not clear. It all depends on how much is specified in the "purchase" agreement. So, it is not recommended to overestimate the cost of housing. Not always such an action is beneficial to the seller. The fact is that personal income tax will be calculated exactly from the amount specified in the sales contract. And the payment will have nothing to do with the cadastral price tag.

Not rated

What tax do modern citizens pay when buying an apartment? We are talking about the transfer of personal income tax. Cash is collected exclusively from the seller of the object. Buyers are already incurring significant costs.

What to do if the property has no cadastral value? You can conduct an independent assessment, and then enter the relevant information into the databaseRosreestr. It takes a lot of time and effort.

Many citizens simply pay personal income tax in the amount of 13% of the amount specified in the "sale" agreement. As it was emphasized earlier, such a development of events takes place when there is no cadastral value for housing. Only in this case is it allowed to use the market price tag when calculating income tax.

Small cadastral value

Based on the foregoing, it follows that home sellers must pay personal income tax at a rate of 13%. Either the cadastral value or the market value will be taken as the tax base.

What about minor exceptions to the rules? Do I need to pay tax when buying an apartment if the cadastral value of the property is too low?

Modern citizens may not be puzzled by the transfer of personal income tax when selling property if the cadastral price tag of real estate is less than 1,000,000 rubles. At the same time, the price of the "purchase and sale" agreement should also be no more than one million rubles.

In real life, such objects almost never occur. So, you should not rely on them.

Long ownership

Tax on the acquisition of property in Russia is not charged. Moreover, buyers can, under certain circumstances, count on a property tax deduction. Taxes on the sale of real estate in the Russian Federation are paid only by owners-sellers.

But not always. Long-term ownership of a property releasesowners from the need to pay personal income tax. What does this mean?

If the property was purchased after 2016, then you will not need to pay income tax on the sale of this property after 5 years of ownership. In our case, from 2021.

This rule greatly simplifies the lives of citizens. Some homeowners are now specifically waiting for 5 years from the date of acquisition of ownership of the object, so as not to face taxes.

For old property

But that's not all. There are a lot of nuances when buying an apartment. What to do if the property for sale was purchased by the seller before 2016?

Such properties are subject to slightly different tax exemption rules. If the seller owns a home purchased before 2016 for more than 3 years, you can not pay income tax.

When they must pay

Do I need to pay tax when buying an apartment? Taxation for the transaction is provided, but only for the selling party. Buyers will not have to communicate with the Federal Tax Service about this.

Based on the above, it follows that:

1. Individual income tax for the sale of housing is paid if the owner purchased the property after 2016 and at the time of the operation has owned it for less than 5 years.
2. Income tax is not paid when the property has been owned for more than 3 years. In this case, the property must be registered in the ownership of the seller until 2016.
3. There is no taxation for the purchase and sale of housing if the cadastral and market value of the object is notmore than 1,000,000 rubles.

So, you will have to pay taxes in all other cases. That is, when owning real estate for less than 5 or 3 years, respectively. Filling all of this will not be difficult.

Additional costs

But this is not all the costs that the population will face. The thing is that in addition to mandatory taxes, citizens have to pay for transaction support.

Usually the agency commission depends on the price of the contract. In practice, you have to pay from 10 to 50 thousand rubles. Who exactly will bear the costs, the parties discuss in advance. Most often, they fall on the shoulders of buyers in the form of a mark-up on the purchased housing.

Registration rights

There is no property acquisition tax in Russia. Instead, the buyer will have to pay for the registration of the transfer of rights to the property. The payment has nothing to do with taxes, but you need to know about it.

Only 2,000 rubles are paid for registering the property rights of an individual. Organizations and legal entities will have to pay 22 thousand rubles for a similar operation. Cash is usually charged upon registration of the sales agreement.

Right of deduction

Purchasing an apartment by a pensioner is another not very common occurrence. Does such a person need to pay for registration of rights? Yes. And if a pensioner acts as a seller of housing, will taxation take place? Also yes. The age of the citizen does not affect the need to paypersonal income tax.

However, property buyers can recover 13% of the amount transferred for the purchase of housing. This is a tax deduction request. It relies on a person if:

• the buyer pays personal income tax in the amount of 13% of his salary;
• housing is bought in the name of the applicant and at his own expense;
• citizen has a permanent official place of work;
• the potential recipient of the deduction has the citizenship of the Russian Federation.

At the same time, more than 260,000 rubles in total cannot be returned in the form of a property return. That's not all. A person cannot claim a deduction in excess of the taxes listed in a given year.

How to claim a deduction

What tax when buying an apartment, and under what conditions it must be paid, was discussed above. How to get a tax deduction?

The homebuyer must:

1. Create a package of documents of the established form.
2. Fill out and submit an application to the local department of the Federal Tax Service.
3. Get a response from the tax office regarding the provision of deductions.
4. Wait for the transfer of money to the specified account.

It's actually easier than it looks. Problems can arise only at the stage of preparing documents for deduction. They are always different. It is better to clarify more accurate information on a specific case with the Federal Tax Service.

Tax Due Date

Do they pay tax when buying property in the Russian Federation? Yes, although not always. Moreover, it is not recommended to conduct calculations on your own. The citizen risks making mistakes.

BeforeWhen do you need to pay for the sale of a home? Usually this information is indicated in the sent payment order. You will have to apply with a declaration in the form of 3-NDFL as soon as possible. As a rule, income must be reported before April 30, in the year following the period in which the purchase and sale took place.

Results

Taxation in Russia raises many questions among the population. The article presented all possible cases related to taxation when concluding real estate purchase and sale transactions. All the above examples are relevant for any "real estate", and not just for housing.

Is it possible to be exempt from paying personal income tax somehow else under the law? No. If the seller does not pay income tax on time, he will have to face a fine. Usually it is 30% of the debt to the Federal Tax Service.