Property tax deduction when buying an apartment: conditions, documents, receipt

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

Buying an apartment is expensive. Many citizens buy housing on a mortgage. The state provides a number of support measures to Russians who have acquired real estate property. One of the most popular is the possibility of using the property tax deduction. What are the features of its design? How big can the payouts be?

Essence of deduction

What is the property tax deduction when buying an apartment? Citizens of the Russian Federation who purchase residential real estate at their own expense are en titled to a refund of 13% of the costs associated with the acquisition of housing. However, it is permissible to realize this opportunity only if the citizen pays personal income tax to the state, which is equal to 13% of the salary or other source of income. From the relevant deductions, a refund of part of the costs of buying an apartment is formed. Thus, the payments in question are referred to as "tax payments".

Compensable expenses

Purchasing an apartment may come with some associated costs. Suchsuch as, for example, the purchase of building materials and finishing elements for repairs, the remuneration of specialists of the relevant profile. Actually, these two types of expenses, along with those that reflect the amount paid for the apartment, can also be included in the tax deduction.

In some cases, it is also possible to count on compensation for the costs associated with the acquisition of a land plot for individual construction. The property tax deduction when buying an apartment also applies to the cost of paying interest to the bank on a mortgage loan. The principal amount of the debt is included in the cost of housing.

Right of citizens only

We got acquainted with what a tax deduction is when buying an apartment. Are only citizens who are natural persons en titled to this kind of compensation? Yes it is. Return recipients are only natural persons. Personal income tax is the only type of tax that is taken into account when calculating the corresponding payments. For example, a VAT refund when buying an apartment in favor of an organization is not possible. Moreover, the apartment for which the deduction is made must be located on the territory of Russia. We also note that only tax residents of the Russian Federation have the right to return personal income tax. That is, those citizens who live in Russia more days a year than abroad. If a person has the status of a non-resident, then the tax that he pays is 30%.

So, a VAT refund when buying an apartment and making a deduction for citizens who most of the timeliving abroad are legally impossible. But these are far from all the legislative nuances concerning the realization of the rights of Russians to the corresponding privilege when purchasing housing. Let's take a look at other noteworthy aspects. For example, those related to determining the amount of the deduction, based on recent changes in the Tax Code of the Russian Federation.

Amount of deduction and legal nuances

How big can the property deduction be when buying an apartment? To answer this question as correctly as possible, we have to study some of the nuances of the legislation. The fact is that until 2014-01-01, the same rules for calculating the amount of the deduction were in effect, after - somewhat different ones. The changes are related to the adjustment of some provisions of the Tax Code.

As part of the relevant legislative reform, it was determined that the maximum deduction could be 13% of the amount of 2 million rubles spent in the process of acquiring one or more real estate objects (including repair and land costs). As for mortgage interest, the maximum return on them after the reform is 13% of the 3 million rubles paid to the bank.

What happened before the changes in the RF Tax Code? The principal amount reflecting the cost of housing was the same - 2 million. But it was possible to receive 13% of it in full, that is, 260 thousand rubles, only for one property. Moreover, if the price of an apartment or house was less than 2 million, then it was impossible to get 13% of the difference between this figure and the legislative maximum. With regard to interest, however, no restrictions on the amount have been established.was.

How do the two "regimes" in which the property tax deduction is regulated when buying an apartment correlate? Does the law have retroactive effect in this case? It all depends on when exactly the person for the first time issued a deduction for himself when buying an apartment.

If he did this before the entry into force of the amendments to the Tax Code of the Russian Federation, then the rules in force before the reforms apply to his case. That is, he can return a maximum of 13% of 2 million rubles from the costs of purchasing only one property and repair, if they, respectively, are equal to this amount or more. At the same time, he will be able to return from the paid interest on the mortgage as much as they "run in" - there is no upper limit here. As long as a person sends a payment for a loan to a bank, he can receive a deduction calculated on the basis of the corresponding amounts.

If a person applied to the Federal Tax Service for the first time in order to issue a deduction when buying an apartment after 2014-01-01, then the new wording of the law will apply to his case. That is, he is en titled to a deduction of 13% from 2 million - from the cost of buying one or more real estate, from 3 million - for mortgage interest.

Thus, the period of purchase of housing - before the reform or after - does not matter. The most important thing is when a person applied for the first deduction. Now, in fact, about how to do this in practice - contact the Federal Tax Service for appropriate compensation.

Deduction procedure

Property tax deduction when buying an apartment, as a rule, is notpaid in a lump sum. Compensation is calculated once a year - in proportion to the amount of personal income tax that was paid by a citizen to the treasury for the tax year. Theoretically, of course, a full refund of the due part of the expenses is possible, but only if personal income tax deductions from salaries or other incomes are equal to or exceed 260 thousand rubles. If a tax deduction is made when buying an apartment on a mortgage and we are talking about interest, then the amounts to be returned are calculated according to a similar principle - the amount of payments to the bank for the year is summed up.

So, the calculation of the amount payable when applying to the Federal Tax Service is carried out on the basis of the following criteria: adding deductions within the framework of personal income tax and bank interest for the year preceding the one in which the citizen applies to the Federal Tax Service. You can apply for a refund when buying an apartment at any time. There is a version that this must be done before April 30, but this is not so. This date is the deadline by which the employer must provide the Federal Tax Service with information on taxes paid for its employees. For the citizens themselves, in the general case, similar obligations do not arise. You need to bring a set of several documents to the Federal Tax Service. Which ones?

Documents

First of all, this is a tax return, drawn up in the form of 3-personal income tax. You can ask for it in the accounting department of the employing company. There is another similar document - a 2-NDFL certificate, it reflects the salary for the year. It also needs to be invested in the general set of papers for processing the deduction.

The Federal Tax Service will need documents thatconfirm the right of ownership of a citizen to housing. You will also need a contract of sale for an apartment, or an agreement on equity participation in construction (if the house is still being built). If the new building has been commissioned, you will also need an act of acceptance and transfer of finished housing. Although some experts believe that the Federal Tax Service should not require the last document at the same time as the sale and purchase agreement or for a "share". At the same time, much depends on the policy of specific territorial departments of the Federal Tax Service.

We have listed the documents reflecting the ownership of the apartment by the owner. But a tax refund when buying an apartment is a financial transaction. The Federal Tax Service will require you to provide payment documents that will reflect the amount of expenses. These can be bank statements, receipts, checks, acts, etc., in some cases, a receipt from the seller that he received such and such a sum of money. If a tax deduction is issued when buying an apartment on a mortgage, the Federal Tax Service will request a loan agreement with the bank. You will also need the details to which the Federal Tax Service will transfer the deduction.

Having prepared all these documents, you need to take a passport and visit the territorial department of the tax service. There, the specialists of the Federal Tax Service will issue an application to be filled out and attached to the rest of the papers. Part of the information can be transferred to the Federal Tax Service through the Gosuslugi. Ru portal, but the procedure for electronic interaction between the department and citizens has not yet been so well-established - you still have to make an "offline" visit to the structure. Having given the documents, you can wait until the deduction when buying an apartment is transferredto the specified bank details. The timeframe within which the Federal Tax Service must carry out the relevant banking transaction is no more than 3 months from the date of receipt of the application.

Alternative scenario

There is another, alternative, option with which you can apply for a property tax deduction when buying an apartment. We have already said that the corresponding right arises for a citizen by virtue of his payment of personal income tax from salaries and other incomes. But the law allows an alternative to the return of personal income tax on account of the deduction - not to pay this tax. That is, the employer simply will not keep him, calculating the salary. In order to use this mechanism, you need to contact the Federal Tax Service, request a document there reflecting the right to a deduction, and bring it to the accounting department. True, you can only take it once a year. And if a person changes jobs, then it will not be possible to re-perform this operation. However, if a citizen is employed in several places, then personal income tax can not be paid on each. Non-payment of salary tax can last until the amount of the deduction reaches 260 thousand rubles, based on the amount spent on the apartment, or thresholds (if the application was submitted before 2014-01-01) for credit interest. This option is also applicable if we issue a property tax deduction when buying an apartment on a mortgage. The documents are the same as in the first scenario.

Note that receiving compensation from the Federal Tax Service under this scheme involves non-payment of personal income tax only on current labor compensation. If a person has "unrealized" deductions in the past, they will have to act within the first option.

Statute of limitations for deductions

There are no restrictions on when exactly to apply for a tax deduction. It does not matter how long ago the apartment was purchased. At the same time, personal income tax paid on income is taken into account only for the three years that precede when a person applies for a deduction with the Federal Tax Service.

Deduction - only for personal expenses

The right to a deduction when buying an apartment from a citizen arises only if the housing was purchased by him with personal funds. It is impossible to return personal income tax under this mechanism if the apartment was donated by someone or bought with a subsidy from the state or from the employer. Documents submitted to the Federal Tax Service must unequivocally confirm the fact that the citizen himself made the expenses associated with the purchase of housing.

It is possible, of course, that a person took on part of the cost of acquiring an apartment or house, but at the same time he took advantage of state support. In this case, the calculation of the deduction is carried out based on the amounts that the citizen spent personally. In practice, such a scenario is possible if the payment for the apartment in certain proportions was carried out at the expense of maternity capital. In this case, the amount received from the state is deducted from the total, which reflects the cost of acquiring housing. The result will be the basis for calculating the financial deduction.

Apartment in a building under construction

What nuances does the tax deduction include when buying an apartment inhouse under construction? The main difficulty here is that some types of contracts for shared construction are designed in such a way that a citizen, until the moment the property is handed over, is a co-investor in status, but not the owner of the object.

The act of acceptance and transfer of finished housing until the house is completed, the contractor, most likely, will not issue it. In order to be able to issue a tax deduction when buying an apartment, documents must confirm ownership. Without them, the Federal Tax Service will not be en titled to assist the citizen in exercising the corresponding privilege.

Deduction and mortgage

What are the features of the tax deduction when buying an apartment on a mortgage, apart from those that we noted above? The key nuances in this case relate to the collection of documents. The first thing that the Federal Tax Service will require is a loan agreement. Further - sources of payment character. To confirm the amount of mortgage payments that were made during the year, a citizen needs to contact the bank with a request to receive an extract, which should separately reflect payments for the principal and interest. These are the main documents that are needed in order to issue a tax deduction when buying an apartment on a mortgage, documents.

There are a number of other nuances. It concerns what criteria a loan agreement must meet, on the basis of which a property tax deduction is issued when buying an apartment on a mortgage. Does the bank where the citizen took the loan matter? Experts believe not. Moreover, creditcan also be issued in a non-banking financial institution. The most important thing is that it has a purpose. That is, the contract with the bank should indicate that the person undertakes to use the borrowed funds to purchase such and such an apartment, house or build them (or make repairs).

Is it possible that a person will issue a tax deduction solely on the basis of mortgage interest? That is, for example, in those cases when he still does not have an act of acceptance and transfer of an apartment and other necessary documents that officially confirm the right of ownership? Experts believe that such a practice is impossible. Moreover, when a person applies for a deduction with the Federal Tax Service, payments are calculated on the basis of the costs of buying an apartment and repairing it as a matter of priority. As soon as 13% of 2 million or the amount that reflects the corresponding costs is transferred to the citizen, only after that mortgage interest is taken into account.

Joint and shared ownership

In some cases, a person buys housing on the basis of shared (or joint) ownership. In this case, the citizen retains the right to receive a deduction. But the "formulas" of its calculation will depend on what type of relationship takes place - nevertheless, it is precisely shared or specifically joint ownership. In the first case, the financial basis for calculating the amount of personal income tax refund will be proportional to the share of ownership. That is, say, if an apartment costs 3.5 million rubles, and a person owns 20% of it, then the Federal Tax Service will calculate13% deduction from RUB 700,000

If the property is joint, then the owners will have to agree on the distribution of the amount of the financial base for the deduction, as well as formalize their compromise officially by submitting an appropriate application to the Federal Tax Service. It is possible that it will not be possible to agree - in this case, justice can be established by the court. Note that with shared ownership, it is impossible to somehow redistribute the financial base for deduction.

Tax deduction for pensioners

In some cases, the question arises of how a tax deduction is made when buying an apartment by a pensioner. According to what norms is interaction with the Federal Tax Service carried out in this scenario? The fact is that a person does not pay personal income tax from a pension. And if it is the only source of income for a citizen, then in the general case there are no grounds for receiving a deduction. But there are options in which you can still count on some compensation for the cost of buying a home. Which ones are the most likely?

• The first option - the pensioner works in parallel. In this case, he has the legal right to fully exercise the corresponding right of deduction within the framework of all those procedures that we described above.
• Second option - the pensioner had transactions in which the state must pay personal income tax in the amount of 13%. This may be, as an option, the sale of other real estate. And in this case, the right of deduction for the acquired apartment and the obligation to pay tax on the sold one can be mutuallyoffset.
• The third option assumes that the pensioner has already paid some taxes during the three years that precede the one when he applied for the deduction. In this case, the Federal Tax Service may calculate compensation based on the amounts transferred to the treasury as part of personal income tax for previous years. A similar rule applies if the pensioner worked - you can set off personal income tax deductions for the previous three years.

Deduction for those who do not pay personal income tax

There are, meanwhile, other categories of people who have income, but do not pay tax on it, and therefore cannot qualify for a tax deduction. For example, they can be individual entrepreneurs, business owners who are not registered for any position, students receiving a scholarship. In addition, the deduction is not due to those citizens who receive a salary "in an envelope." At the same time, the same rules apply to them as we noted above - if there was a job or other income three years before the application was submitted to the Federal Tax Service, a deduction will be charged in relation to the amount of personal income tax paid. The same patterns, by the way, are also relevant for citizens who are considered unemployed.