Return of mortgage interest. How to get a refund of mortgage interest paid

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

Having your own home is a measure of value. About 30 years ago, the decision of this issue remained with the state. Now citizens must provide themselves with housing. But you can still count on some help. For example, the return of interest on a mortgage. About the essence and details of this process, read on.

Explanation of concepts

Mortgage is one way to buy your own home. If it were not for the high interest rates for this service, then every Russian would have had his own square meters for a long time. However, the state provides for the possibility of partial reimbursement of costs. So, what is actually a return on mortgage interest.

1. The state recognizes that buying a home is a very important event in the life of citizens, therefore it is amending the Tax Code.
2. The cost of purchasing real estate is reduced by reducing the tax base, from which a citizen pays 13% of personal income tax. For example, if a person is paid a salary of 30 thousand rubles, then for the year he receives360 thousand rubles If he manages to buy real estate for this amount, then the taxable base is reduced by a similar figure. That is, the state undertakes to return: 360 / 100 x 13 \u003d 46.8 thousand rubles. This is part of the tax accrued in the year in which the purchase was made. The amount of accrued rather than paid income is taken into account.
3. The number of people who can buy an apartment at a time is small. Much more transactions are made in installments. The state has developed a program that provides for a reduction in the base by the amount of interest that a person pays in the form of monthly payments. Because the bank commission is the main part of the cost of buying an apartment. 13% of this amount is refundable.

Who is en titled to the deduction

Citizens who have sources of income subject to personal income tax. First of all, these are people who work for hire and receive a “white” salary. If a "gray" scheme is used, then you can count on compensation from the official amount of income. If a citizen receives income from several sources (two or more jobs, rent, profit from the sale of securities, etc.), they can also be used for calculations.

If the borrower is an entrepreneur who works on a "simplified" basis, then he is not en titled to such a benefit. The same applies to non-working pensioners.

Women can apply for a refund of paid mortgage interest after leaving maternity leave. If housing was purchased before it, then income before the “vacation” is taken into account. If theywill not be enough, then the balance can be obtained after the holiday.

People who officially work on the territory of the Russian Federation for more than 6 months a year, but do not have citizenship, can receive a refund of mortgage interest.

The exemption does not apply if the transaction was executed between relatives, colleagues and other related persons.

Deduction amount

The basis for the calculation are the funds spent on construction, purchase of real estate. If the transaction was formalized with a target loan, then interest on it is taken into account. But the contract must clearly state that the money was given "to buy a house." Other wording is not allowed.

If a mortgage was issued on a house without finishing, a refund of 13 percent will be made based on the amount of the principal debt, interest on the loan, project development costs, purchase of materials, payment for finishing, connection to electricity, water and gas networks. Completion costs can only be taken into account if the contract states that an object under construction is being purchased. If a foreign currency mortgage was issued, then all expenses are recalculated at the exchange rate of the Central Bank on the day of payment.

The maximum amount of deduction is limited to 2 million rubles. when returning the principal debt and 3 million rubles. - when returning interest. The latter provision applies only to contracts concluded after 2013. Tax deductions cannot include expenses incurred at the expense ofsubsidies, maternity capital and other social benefits.

Return of mortgage interest: documents for registration

• Agreement for the purchase of real estate or rights to acquire it in a house under construction.
• Act of acceptance and transfer.
• Documents confirming the payment of expenses (receipt for the order, seller's receipt, bank statements, sales receipts for the purchase of materials).
• Proof of ownership.
• Loan agreement.

Without a certificate of ownership, you cannot get a tax deduction. If property is purchased in a house under construction, then in order to apply for benefits, you need to wait for the act of acceptance and transfer. All documents must be issued to the person who is going to receive compensation. Otherwise, you will have to write a power of attorney for the real payer.

A package of documents must be submitted to the tax office at the place of registration, regardless of where the property was purchased. The term for making a decision is 3 months. If the answer is yes, then you need to write an application, indicating in it the bank account number for transferring funds. The money should arrive within a month. In case of violation of the deadlines, the tax authority will pay interest for each day of delay at the refinancing rate. If the application for the return of paid interest on the mortgage was rejected, then you can go to court.

Dealing through the employer

Not all people are comfortable with the tax. Therefore, a refund can be issued at work. In this case, the employeea large salary will be paid, since the employer does not have to withhold income tax. To complete the operation, you must take a tax notice in order to receive a deduction with the name of the company. This paper, along with the application, must be submitted to the employer.

NDFL will not be withheld from the month following the receipt of the documents. If an employee wants to change his place of employment, then the rest of the compensation can only be received through the tax office. The notice is issued once a year.

If an employee has one place of employment, then, having received a return on mortgage interest, he cannot issue other deductions from this employer.

Payout procedure

First, the amounts spent on the purchase of real estate are repaid (maximum 260 thousand rubles=13%2 million), then the interest paid. But the declaration must indicate the total amount that is subject to compensation. The package of documents must be updated every 12 months.

If the amount of income does not cover the amount of deductions, then it can be carried over to the next year. In schemes with "gray" wages, there were cases when the loan was already repaid, and you need to wait a few more years to receive compensation.

Conclusion

A person who purchases property on credit in the territory of the Russian Federation has the right to receive a personal income tax refund. Mortgage interest is not repaid immediately, but as the debt is paid to the bank. The operation is processed through the tax. Documents for the deduction must be updated annually. If a foreign currency mortgage was issued, then compensation is calculatedfrom the amount of expenses converted into rubles at the exchange rate of the Central Bank on the day of payment.