Tax refund when buying an apartment: application, documents, terms of return

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

Today we will be interested in tax refund when buying an apartment. What kind of operation is this? To whom is it due? And how can you bring it to life? We will have to figure out all this and not only further. Only with proper preparation will a citizen be able to request a deduction without much difficulty. But for this you will have to take into account many legal requirements and nuances. Accordingly, sometimes the process causes a lot of trouble. But if you follow the instructions below, all the trouble can be minimized.

Description

What is a tax refund when buying an apartment? It is with this question that we will begin our consideration of the topic.

The tax refund is called a tax deduction. It is a reimbursement of part of the costs for certain operations on account of the transferred taxes (personal income tax). In fact, the Federal Tax Service pays a certain share of the funds to the taxpayer. In our case, for the purchase of real estate.

Conditions

It is worth paying attention to the fact that not every modern person will be able to use the studied state bonus. You will have to read the conditions for receiving a return.

At the momentrequired to:

1. The applicant was a citizen of the Russian Federation. Foreigners do not receive deductions.
2. The person submitting the prescribed form must have formal employment. Registration of an individual entrepreneur or LLC will also be taken into account.
3. Citizen transferred income tax in the amount of 13%. Other tax rates are not taken into account.
4. At the time of application, the applicant has not yet exhausted the limit on deductions of one type or another. After that, the right to reimbursement of specific expenses is abolished.
5. The purchase of goods and services for which you want to return the money is carried out at the expense of personal funds and in the name of the applicant.

Perhaps that's all. In fact, the income tax refund for an apartment does not provide for any special conditions. In fact, if a person decides on a mortgage, he will also have to meet similar requests.

Important: when buying an apartment with the participation of maternity capital, you can also apply for reimbursement of expenses. But with some peculiarities. We will talk about them later.

Types of returns

Income tax refund when buying an apartment, oddly enough, can be different. After all, real estate transactions are also different from each other.

The thing is that the population may demand money from the Federal Tax Service when buying:

• apartments on the secondary market (covering the entire amount under the contract immediately);
• mortgage;
• in installments.

In addition, if a loan is taken for the purchase of housing, it becomes possible to issue a refundfor mortgage interest. The main thing is to properly prepare for the operation.

How much to return

Want to claim a tax refund when buying an apartment? The return periods are quite flexible. But the citizen has the right to implement the task only for a certain period of time. After all, the operation has a prescription of calls.

According to the current rules, personal income tax can be returned no later than 3 years after the conclusion of the transaction. And it is allowed to demand money immediately for 36 months. This is very convenient, especially if the applicant initially transfers not so many taxes to the state treasury.

After 3 years, if the return limit has not been exhausted, a person will be able to apply to the Federal Tax Service for a deduction, but for other transactions. There is nothing incomprehensible or difficult about this.

Pensioners and deductions

Special attention deserves a tax refund for pensioners when buying an apartment. The elderly are divided into 2 categories:

• unemployed;
• working.

Accordingly, depending on this moment, further actions will take place. Unemployed pensioners can apply for the deduction within 4 years from the date of dismissal. This is a kind of tax transfer. It is only available to the elderly.

Working pensioners receive a deduction on the same basis as ordinary employed citizens. The application procedure usually does not cause any problems.

Important: if there are doubts about the right to transfer personal income tax upon tax refund, you can contact the Federal Tax Service to clarify the situation. Employees will quickly figure out for what years a person can demand money.

Amount limits

Almost every potential applicant is interested in the amount of the tax refund when buying an apartment. How much money can be refunded?

There are many nuances in this matter. The thing is that the tax deduction allows you to reimburse 13% of the amount under the contract. But with certain conditions and restrictions. Namely:

• you cannot return more money in a year than a person transferred taxes to the state treasury;
• property return allows you to return a total of no more than 260,000 rubles;
• mortgage deduction reimburses a total of 390,000 rubles.

That's it. Accordingly, it is far from always that citizens will be able to return money for certain transactions. All potential recipients of funds will have to be aware of these restrictions.

Maternity capital and deduction

We found out what kind of tax refund when buying an apartment you can get in Russia. And how to behave if maternity capital was involved during the transaction?

It has already been said that citizens will be able to claim a refund without any problems. But it is worth paying attention to certain nuances of the process.

The point is that state support is not the applicant's personal money. And so the amount of the subsidy will be deducted from the amount under the contract. 13% deduction is calculated from the figure received after the fee reduction.

Accordingly, in fact, the citizen will reimburse himself the money not from the full amount under the contract of sale, if he invests in the operationmother capital or enjoys other state support.

Otherwise, there will be no problems with the task. And each potential recipient will be able to quickly request a deduction for a property transaction. This practice is becoming more and more common.

Where they ask

Where exactly do you apply for a tax refund when buying an apartment? There is no single answer to this question.

At the moment, a refund can be claimed through:

• MFC;
• FTS;
• one stop shop service.

In fact, everyone decides for himself where to go with a petition of the established form. The fastest way is to contact the local tax office. Otherwise, you may need to wait longer for funds.

Important: It is proposed to claim a tax refund when buying an apartment through an employer. In this case, personal income tax on the amount of the deduction will no longer be withheld from the person. This option is rarely used.

Step by step instructions

Now let's look at the whole operation step by step. How to proceed in order to receive income tax refund?

Let's turn to the method of applying through the MFC or the Federal Tax Service. In this case, the citizen will need:

1. Conclude a sales contract and wait for the new calendar year. The right to deduction will not appear immediately.
2. Prepare a certain package of documents. Their list depends on the situation. Below are the various packages of papers.
3. Apply to the registration authority with the appropriatepetition.
4. Wait for a response from the Federal Tax Service. It arrives in about 1-2 months.
5. Receive money to the account specified in the application. This operation will take about two more months.

It's done. Income tax refund when buying an apartment does not cause any particular hassle.

Main papers

It remains to consider the documentation that may be useful in bringing the idea to life. Let's start with the basic papers. They are needed under any circumstances.

Among the certificates required for the property tax deduction are:

• applicant's passport;
• application for deduction indicating the details of the beneficiary's account;
• declaration in form 3-personal income tax;
• USRN statements for property;
• income certificates;
• checks and receipts/expense receipts addressed to the applicant.

But that's not all. Depending on the situation, you will have to prepare a number of other papers. What is it about?

For family citizens

Let's start with the more common cases. For example, if a tax refund is required when buying an apartment for family people.

In this case, the applicant will be required to:

• children's birth certificates;
• marriage/divorce certificates;
• adoption papers.

But the package of papers does not end there. In some cases, the applicant is asked for an extract from the personal account and a certificate from the BTI. But usually this kind of certificate is necessary to complete a transaction for the sale of property. And in the FTSno documentation provided.

Purchasing an apartment for the entire amount

And what if you want to buy an apartment for the entire amount at once? Without a mortgage and installments?

In this case, the citizen must necessarily need a contract of sale. It is advisable to take the act of acceptance and transfer of the apartment with you.

All of the listed documents are attached to the main package of papers. It is advisable to bring the originals along with copies. There is no need to certify them.

Mortgage and return

Is it planned to return income tax when buying an apartment? Mortgage also allows you to reimburse the costs of the transaction. Just a package of papers under such circumstances will be different.

It includes:

• mortgage agreement;
• debt repayment schedule;
• certificates about making certain payments.

It's actually easier than it looks. The listed certificates should be in every bona fide applicant. You can't do without them.

Mortgage interest

As already mentioned, a citizen can recover the interest overpaid on a housing loan. But how to do it?

You will have to act in exactly the same way as with a regular deduction request. You just need to prepare a certain package of documentation. It includes extra:

• payment schedule;
• documents confirming mortgage interest transactions.

You need to attach certificates to the main documentation package and to extracts,necessary to pay back the mortgage.

Reply timeout

How long will you have to wait for a response from the Federal Tax Service to implement the task? In general, a tax refund when buying an apartment in one way or another is far from the fastest operation. It takes quite a long time.

How much exactly? There is no single answer to this question. It all depends on the burden on the local tax authority and on where exactly the application of the established form is submitted.

If a citizen applies to the Federal Tax Service directly, a response from the relevant service will come in approximately 1.5-2 months from the date of the request. And about 60 more days you have to wait for the transfer of funds.

If you apply through the MFC, the waiting period is slightly longer. Usually, the response from the registration authority comes in 2-2.5 months. You will have to wait for the same amount of money as when applying to the Federal Tax Service.

Important: in general, it takes about 4-6 months to claim a personal income tax refund. There is no way to get funds quickly or instantly. This is normal.

Can they refuse

What tax refund when buying an apartment on a mortgage is due in 2018? Answering this question will no longer cause any trouble.

Can a deduction be denied? Yes, but only under certain circumstances. The reason for the refusal is prescribed in the response of the Federal Tax Service.

Usually, these situations occur if:

• citizen brought an incomplete package of documents;
• applicant does not meet the requirements listed above;
• the apartment is not decorated onrecipient of money, checks and receipts do not indicate the fact of payment for the transaction by the applicant;
• The papers used are invalid or counterfeit.

These are the most common scenarios. If the deduction is refused within a month, a citizen can correct the situation without re-submitting an application in the established form.

Conclusion

We figured out how to get your income tax refund when buying an apartment. An income declaration, certificates of a person’s income, as well as other statements will have to be prepared in advance. Otherwise, it will not be possible to cope with the task.

In fact, with the right approach, getting a tax refund will not cause much trouble. Even a person who is poorly versed in paperwork will be able to demand the funds due to him.