2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Tax deduction when buying an apartment for an individual entrepreneur is a topic that causes a lot of controversy and disagreement among the population. Some believe that entrepreneurs cannot claim income tax refunds, while others say otherwise. How is the situation in reality? The answer to this question will be found below. We will try to provide all relevant information about property deductions and entrepreneurial activities when returning personal income tax. All this will help to avoid a huge number of problems in the future.
Deduction definition
Tax deduction when buying an apartment for an individual entrepreneur is a tempting offer. A deduction is the process of returning money for certain transactions on account of income tax.
In our case, part of the cost of buying an apartment can be returned back to the payer, but with some reservations. Not everyone will be able to make a deduction. What does the legislation say on this issue?
How much can be reimbursed
First you have to find out how much money you can return as a deduction. The legislation of the Russian Federation indicates certain limits that are granted to a person for life.
In general, the deduction provides for a refund of 13% of the amount of expenses for certain transactions. However, there are limitations.
In the case of a property deduction, you will have to focus on the following information:
- It is impossible to return more money than the amount of income taxes transferred for a given period of time.
- The property deduction allows you to reimburse a total of 260 thousand rubles. After this limit is exhausted, the right to deduct is cancelled.
- A citizen who has issued a mortgage can count on the return of the listed interest and the main loan. The mortgage deduction allows you to recover 390,000 rubles.
It's actually easier than it looks. It is enough to carefully study the current legislation to find out how a tax deduction is issued when buying an apartment for individual entrepreneurs and other recipients.
Statute of limitations
The second point worthy of attention is the period for applying for a tax refund when buying a property. The statute of limitations for claiming deductions is critical.
He is currently 3 years old. This means that a potential recipient can claim money both for a transaction made no more than 36 months ago, and for the entire three-year period (for example, when paying a mortgage).
Basic conditionsfor decoration
Can an individual entrepreneur return 13 percent from buying an apartment? And if so, how can the procedure be carried out?
The thing is that not all citizens can count on a refund for certain expenses on account of personal income tax. To get started, certain conditions must be met. There aren't many of them.
For a person to be eligible for a tax type deduction, you must:
- Having a permanent job.
- Transfer personal income tax in the amount of 13% of income to the state treasury. Interest rates above or below the specified value are not taken into account.
- Have citizenship of the Russian Federation (or be a resident of the Russian Federation) and be a capable adult.
- Make a deal on your behalf.
In reality, everything is much simpler than it seems at first. If you prepare in advance for the procedure, you will be able to reduce all the upcoming chores to a minimum, or even get rid of them altogether. But what about entrepreneurs?
Law and entrepreneurship
Can an individual entrepreneur get a tax deduction when buying an apartment? Unfortunately, there is no way to give a definite answer. It depends on several factors.
Theoretically, the right to a tax deduction when buying property from an entrepreneur is. In fact, such "bonuses" are extremely rare. And there are reasons for that. What exactly? We will tell about them below!
When you can demand money
Can an individual entrepreneur get a tax deduction when buying an apartment and how? First of all, you needmake sure that the entrepreneur complies with the rules established by the legislation of the Russian Federation.
We are talking about paying personal income tax. Entrepreneurs who transfer taxes to the state treasury in the form of 13% of income have the right to a tax deduction. Only in this case, the individual entrepreneur will be able to claim a deduction.
Usually, in practice, entrepreneurs working under the general taxation system are able to issue a refund for the purchase of real estate without any problems. A little later, we will find out how to act to achieve the desired goal. It's not too hard.
Special tax regimes
A tax deduction when buying an apartment for an individual entrepreneur is not always issued, but only under certain circumstances. In real life, this situation is less and less common. What is it about?
With the fact that entrepreneurs are trying to work with special taxation regimes. They provide special tax rates - above or below 13%. Accordingly, the right of deduction is abolished.
Where to go
How to quickly get a tax deduction when buying an apartment? To do this, you just have to follow a certain algorithm of actions. But before that, let's study a few important nuances of the operation.
For example, where to apply for a tax deduction. Similar applications are accepted:
- tax authorities;
- multifunctional centers.
No other public services provide the study "bonus". Need to contact locallyIP registration.
Procedure for registration
Can an individual entrepreneur get a tax deduction when buying an apartment? Let's assume yes. In this case, you should not hesitate to contact the Federal Tax Service. Otherwise, the operation will take a lot of time and effort.
To apply for a personal income tax refund for the purchase of real estate, a citizen must:
- Create a package of certificates requested by government agencies. The entrepreneur may have problems with this step.
- Fill out an income tax refund application.
- Submit a petition to the Federal Tax Service.
- Waiting for a response from the tax office.
- Receive money provided by the legislation of the Russian Federation.
Sounds easy and simple. A tax deduction when buying an apartment for an individual entrepreneur is not much more difficult to draw up than for an ordinary citizen. But at the stage of preparing documentation for bringing the idea to life, entrepreneurs have difficulties. This is normal.
Main papers
How can an individual entrepreneur get a tax deduction when buying an apartment? To begin with, you will have to make sure that the entrepreneur will be able to exercise the relevant right, and then prepare a certain package of certificates.
It includes without fail:
- IP registration certificate;
- income certificates;
- tax return for the reporting period;
- USRN statement;
- contract for the sale of real estate;
- checks confirming the cost of the operation.
That's not all. Often, entrepreneurs have to prepare an additional package of certificates. It will change depending on the life situation.
Additional papers
Do you need to apply for a tax deduction when buying an apartment for an individual entrepreneur? Documents for filing an application of the established form are prepared in advance. We have already familiarized ourselves with the main list of components.
According to the law, an entrepreneur can register housing as the property of a spouse or child. Then the individual entrepreneur will still be able to return part of the money for the purchase of real estate for their finances.
In this situation, the following papers may come in handy for an entrepreneur:
- birth certificate;
- adoption certificates;
- extracts on the registration of the child in the registry office;
- marriage contract.
That should be enough. It is advisable to immediately attach copies of the listed papers to the application in the established form.
Mortgage and return
The calculation of the tax deduction when buying an apartment in a mortgage raises many questions. It is better to clarify it with the Federal Tax Service or use online calculators that allow you to quickly calculate the amount of personal income tax refund, depending on the payments made by a person.
In order for an individual entrepreneur to apply for a mortgage deduction, he needs to make preparations;
- loan payment schedule;
- mortgage agreement;
- any payments indicating the fact of transferring money for interest and the main loan.
Of course, we must not forget aboutmandatory list of documentation for deduction. Without it, it is impossible to achieve a refund of income tax paid to the state treasury.
Waiting time
How can an individual entrepreneur get a tax deduction when buying an apartment? More such a question will not put the citizen to a standstill. From now on, it is clear that entrepreneurs with OSNO can claim personal income tax refunds.
How long to wait for cash? Making a deduction is a very long procedure. On average, it takes 3-4 months. That is why it is recommended not to hesitate in contacting the Federal Tax Service with a corresponding request.
As practice shows, an application for a deduction will be considered for about 2-3 months. In exceptional cases, the verification period may be extended. Another month is needed to transfer money to the account of the entrepreneur. Sometimes transactions are processed faster.
Can they refuse
We studied the tax deduction when buying an apartment for an individual entrepreneur. With proper preparation and certain conditions, the entrepreneur will be able to recover part of the taxes paid for the purchase of real estate. But, as practice shows, such cases are becoming rarer. It is more profitable for individual entrepreneurs to work with special taxation regimes. They do not provide for deductions.
Can the applicant be denied the transfer of money for the purchase of real estate? Yes, but there must be reasons for this. Moreover, the response of the Federal Tax Service must be issued in writing.
Most often tax deduction denials are due to:
- incomplete package of documents attached tostatement;
- missing deadlines for applying for money;
- the fact that the property is not registered to the spouse or child of the entrepreneur;
- using fake documents;
- lack of IP rights to issue a deduction.
If the Federal Tax Service did not give a written answer, you can complain to the prosecutor. If a decision is justified, it is allowed to correct the mistake within 1 month without re-applying to the registration authorities. For example, to bring the missing documents to the Federal Tax Service.
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