Application for a property tax deduction

Here is an application form for property, social, standard and investment tax deductions when filing a 3-NDFL declaration with the inspectorate.

To fill out the payment details fields for the correct transfer of funds, the article on how to find out your account number and bank details will help you.

The relevant articles will help you with the remaining columns of the application, such as the Federal Tax Service number (which you will contact) and the TIN number, which you can read by following the links.

Types of property deductions

Property deductions applied to income taxed at a rate of 13% are discussed in Art. 220 Tax Code of the Russian Federation. It talks about 4 types of deductions:

• arising in the event of the sale of property (subclause 1 clause 1);
• equal compensation for the value of property sold by the taxpayer (subclause 2, clause 1);
• in relation to the costs of purchasing housing (subclause 3, clause 1);
• on interest for a loan taken for the purpose of purchasing a home (subclause 4, clause 1).

The question of applying for a deduction arises in relation to the last 2 types.

Deductions when buying a home

Deductions related to the costs of purchasing housing are most in demand. They are divided:

• for direct purchase costs;
• contributions to construction, including the purchase of land for it;
• interest on targeted loans taken for the purchase or construction of housing.

These deductions are limited to the following amounts:

• 2 million rub. for purchase or construction expenses, and the deduction can be used in full, and if the amount of costs for one object is insufficient for this, then in relation to several objects (subclause 1, clause 3, article 220 of the Tax Code of the Russian Federation);
• 3 million rub. for interest on a loan (clause 4 of Article 220 of the Tax Code of the Russian Federation), but such a deduction is applicable only to 1 object (clause 8 of Article 220 of the Tax Code of the Russian Federation).

Both types of deductions can be used simultaneously for the same object and also apply to situations of acquisition of property in favor of owners under 18 years of age by their parents or guardians (clause 6 of Article 220 of the Tax Code of the Russian Federation). But they are not applicable for expenses paid not by the taxpayer himself, by budgetary funds or maternal capital funds, as well as for transactions with interdependent persons (clause 5 of Article 220 of the Tax Code of the Russian Federation). You cannot get them a second time (Clause 11, Article 220 of the Tax Code of the Russian Federation).

Acquisition is possible in shared ownership. This does not prevent each of the owners from taking full advantage of both deductions in the amounts established by law.

Examples of standard tax deduction calculations

All of the standard deductions listed above reduce the taxable base, which means that the employee will receive a larger salary in hand.

For clarity, let's look at an example:

A single mother is raising three children: Katya is 5 years old, Nastya is 18 years old, she is studying full-time at a university, Maxim is 23 years old, he is studying part-time and works. In January 2021, she earned 50,000 rubles.

The eldest child studies part-time, works, supports himself, so he is not entitled to a deduction, but he still remains the first child and participates in determining the priority.

For her second daughter (18 years old), the employee brought a certificate from the university, so the deduction for Nastya will be 1,400 rubles, but since the employee is also a single mother (in Nastya’s birth certificate there is a dash in the “father” column), then the deduction will be double: 1,400 rubles. * 2 = 2,800 rub.

The third child (he also has a dash in his birth certificate) also receives a double deduction: 3,000 rubles. * 2 = 6,000 rub.

The accountant must calculate and withhold, taking into account personal income tax deductions:

• Personal income tax = (50,000 rubles - 2,800 rubles - 6,000 rubles) * 13% = 5,356 rubles.
• A single mother will receive “clean”: 50,000 rubles. — 5,356 rub. = 44,644 rub.

Without standard deductions, earnings would be RUB 1,144 lower:

• 50,000 rub. — 13% = 43,500 rub.

Expenses taken into account in the deduction

A residential property (or part of it) can be purchased ready-made or unfinished, built through equity participation in construction or on its own. For deduction, it is legitimate to take into account all costs directly related to its occurrence. In addition to the funds directly paid for the acquisition of an object or a share in construction, the following expenses can be taken into account:

• for design and budgeting;
• construction and completion;
• finishing (materials and work);
• connection to general networks or construction of local sources of water, gas, heat, electricity, as well as autonomous sewerage.

Costs for completion and finishing are taken into account only if the property was purchased unfinished or the contract provides for the transfer of housing to the owner without finishing (subclause 5, clause 3, article 220 of the Tax Code of the Russian Federation).

Documents giving the right to deduction

A person claiming a deduction must collect all documents certifying the fact of acquisition of property and the amount of expenses incurred on it:

• certificates of ownership (land, house, apartment, room, share);
• purchase agreements, equity participation agreements, acceptance certificates;
• when purchasing for children or wards - documents about birth or guardianship;
• mortgage or targeted loan agreement;
• payment documents of any kind for all expenses.

This set, in terms of the volume of costs incurred, should be as complete as possible, since adjustments to the amount of deductions already declared for a specific object (except for the amount of interest on the loan) are not provided (letter of the Ministry of Finance of Russia dated June 11, 2014 No. 03-04-05/28176) . An exception is the situation of paying for housing in installments (letter from the Federal Tax Service of Russia dated November 12, 2014 No. BS-4-11 / [email protected] ).

For a complete list of necessary papers that must be prepared when forming a property deduction, see here.

Peculiarities of using “children’s” standard deductions

Large families have the right to apply the deductions required by law, observing the order of birth of children. But there are also nuances.

Deduction for a disabled child:

• can be summed up with other child deductions , taking into account the order of appearance of the child.

For example, the deduction for the first disabled child of the 1st group, under the age of 18, for a parent will be 13,400 rubles (1,400 rubles 12,000 rubles).

• The 3rd disability group gives the right to receive a regular child deduction, taking into account the order of birth of the child.

For example, for the first child with disability group III, a deduction of 1,400 rubles is provided.

Both parents, adoptive parents or guardians receive the child deduction , as well as:

• the new spouse of the child’s mother - upon marriage, if the child is jointly supported, that is, if the new spouse provides for his wife’s child from another marriage;
• the new wife of the child's father - upon marriage, subject to the father paying alimony, since it is considered that alimony is paid from the common income of the spouses.

The only parent, guardian, trustee or adoptive parent receives a double deduction for children This happens in the following cases:

• if the second parent died (letter of the Ministry of Finance of the Russian Federation dated 08/06/2010 No. 03-04-05/5-426) or was declared missing (letter of the Ministry of Finance of the Russian Federation dated 12/31/2008 No. 03-04-06-01/399);
• if the father is not indicated on the birth certificate (there is a dash) and the mother is not married;
• if the second parent voluntarily refused the deduction, but it is important that the person refusing has income subject to personal income tax at a rate of 13% (15%) (letter of the Ministry of Finance of the Russian Federation dated April 20, 2017 No. 03-04-05/23946).

Double deduction is not allowed in the following circumstances:

• the second parent is unemployed and registered on the stock exchange;
• the second parent is on maternity or child care leave;
• when children enter into legal marriage.

Now that all recipients and amounts have been named, we move on to the formula for calculating and applying the deduction.

When can you start applying the deduction?

The question of obtaining a deduction will become relevant when the property is registered for a residential property or the taxpayer receives an acceptance certificate for a finished shared construction project. Until this moment, neither the registration of the right to land allocated for development (subclause 2, clause 3, article 220 of the Tax Code of the Russian Federation), nor the costs of paying interest on a mortgage (clause 4, article 220 of the Tax Code of the Russian Federation) do not allow one to exercise the right to deduction.

You can start applying the deduction in 2 ways:

• In the year when the right to a deduction appeared (without waiting for the end of the year), submit the package of documents collected on it to the Federal Tax Service at your place of permanent residence and a month later pick up a notice of the right to a deduction there to receive it from your employer already in the current year (p 8 Article 220 of the Tax Code of the Russian Federation). The form of this notification was approved by order of the Federal Tax Service of Russia dated January 14, 2015 No. ММВ-7-11/ [email protected] It is intended for issuance to a specific employer, whom the taxpayer will indicate in the application.
• Wait until the end of the year in which the right to deduction arose and submit a set of documents on it to the Federal Tax Service along with the 3-NDFL declaration for the corresponding year (clause 7 of Article 220 of the Tax Code of the Russian Federation). After checking the documents and declaration, the Federal Tax Service will return the tax accrued on it as a refund, and for the remaining amount, if desired, the taxpayer will give a notification of the right to a deduction for its use at the place of work. The declaration is submitted together with 2-NDFL certificates from all employers. Its verification will take 3 months (clause 2 of Article 88 of the Tax Code of the Russian Federation), and another month will be spent on procedures for tax refund (clause 6 of Article 78 of the Tax Code of the Russian Federation) and issuing a notification of the right to deduction (clause 8 of Article 220 of the Tax Code RF).

For information on how to fill out the declaration correctly, read the article “Sample of filling out the 3-NDFL tax return.”

Thus, the deduction begins to be applied from the year the right to it appears and is used in subsequent years, provided that there is income in them from which personal income tax is withheld. The deduction will be applied for the number of years necessary for its full use for the entire amount of expenses confirmed by documents (clause 9 of Article 220 of the Tax Code of the Russian Federation).

For pensioners, it is possible to use the deduction for 3 years preceding the year the right to it became available (clause 10 of Article 220 of the Tax Code of the Russian Federation). If in the year the right to deduction arose there was no income subject to personal income tax, then the deduction can be applied for in subsequent years (without limiting their number), but no later than 3 years from the end of the years for which the tax must be returned (letter from the Ministry of Finance of Russia dated June 11, 2014 No. 03-04-05/28218).

An employer who has received a notice of the right to a deduction will begin to use it from the month of receipt, but in relation to income for the entire year (letter of the Ministry of Finance of Russia dated September 25, 2015 No. 03-04-05/55051). If at the time of providing the notification for the current year, the tax has already been withheld and it is not possible to return the excess withheld amount at the place of work from the accrued tax for the year (the amount of deduction exceeds the amount of accruals), its refund will be carried out by the Federal Tax Service (letter of the Ministry of Finance of Russia dated July 15, 2014 No. 03 -04-05/34402).

Regardless of the method by which the deduction is applied, the right to use its balance (if the deduction is to be used for several years) must be annually confirmed with the Federal Tax Service in one of the following ways:

• Receive a notification for your place of work at the beginning of the year - upon application for the issuance of such a notification (clause 8 of Article 220 of the Tax Code of the Russian Federation).
• Submit a declaration to the Federal Tax Service and return the tax through it - according to the application for the return of personal income tax (clause 6 of Article 78 of the Tax Code of the Russian Federation), which indicates the account details for the tax refund. Submitting an application for the application of a property deduction is not necessary (letter of the Ministry of Finance of Russia dated November 26, 2012 No. 03-04-08/7-413). Its role is played by the declaration itself.

What to attach to the application for filing 3-NDFL and where to download its sample

Depending on the purpose of filing 3-NDFL, the list of documents may differ. If a declaration is submitted to receive, for example, a social deduction, then the applications may be as follows:

• contract for the provision of medical services (copy);
• training contract (copy);
• certificate from the medical institution for tax authorities on the cost of services provided (original);
• license of a medical institution or educational organization (copy);
• birth certificate of the child, if the deduction is claimed for his education or treatment (copy);
• other supporting documents.

Read more about the documents required to receive a deduction for treatment here.

See also “Documents for tax deductions when purchasing an apartment in 2020-2021.”

During a desk audit, tax authorities have the right to request additional documents, which should be accompanied by a separate inventory.

As noted above, the cover letter is drawn up in free form. On our website you can see an example of this document.

When the question arises about the distribution of deductions

A taxpayer may have several jobs or change jobs during the period of application of the deduction.

If a person works in several places at the time of issuing a notification of the right to a deduction, you can request several such notifications from the Federal Tax Service, distributing the amount of the deduction between all places of work (clause 8 of Article 220 of the Tax Code of the Russian Federation). Information about employers and deduction amounts related to each of them may be indicated in one application.

When changing jobs, a deduction for a new place will be possible only after notification of the right to it is provided, addressed to the new employer. At the same time, the Federal Tax Service Inspectorate has the opportunity to check the data on the refund already made by receiving a 3-NDFL declaration from the taxpayer for the year of job change (clause 7 of Article 220 of the Tax Code of the Russian Federation). The information reflected in the declaration will need to be confirmed with 2-NDFL certificates from all places of work for the year. 4 months after filing the return, the excess tax withheld for the year will be returned and the necessary notification will be provided.

To learn about receiving 2-NDFL from a former employer, read the article “Where can I get (get) a 2-NDFL certificate?”

The question of distribution of deductions may also arise when purchasing housing in joint ownership, if the total amount of costs for it is insufficient for all owners to use the deductions in full. They can take advantage of the opportunity to allow one of them to apply the deduction in full, redistributing it according to an application to the Federal Tax Service. Other owners in this situation use the deduction only partially or transfer it to other properties.

For details, see the material “Each spouse can receive a deduction for the purchase of property.”

Covering letter for the 3-NDFL declaration

The 3-NDFL declaration itself is a statement from the taxpayer.
NOTE! The declaration for 2021 must be submitted using the new form from the Federal Tax Service order dated August 28, 2020 No. ED-7-11/ [email protected] . you can here.

The Tax Code does not provide for additional statements when filing a report. But it is not forbidden to attach a covering letter to the declaration, which is drawn up in free form. It is recommended to indicate:

• name of the inspection to which the report is submitted;
• applicant's details (full name, address, tax identification number);
• the period for which the declaration is submitted;
• register of documents confirming income or expenses;
• date;
• signature with transcript.

Such a cover letter can be drawn up when submitting the report in person, through an authorized representative, or when sending by mail. When submitting the 3-NDFL report personally or through a representative, you should make 2 copies of the letter and on one of them you should receive a stamp with a mark of acceptance by the tax authority.

When sending a report by mail, a cover letter must be included in the mailing list and receive a postage stamp on it.

To learn about when you should submit your income report for last year, read the material “What are the deadlines for submitting the 3-NDFL tax return?” .

And when submitting a declaration via the Internet, there is no need to issue a cover letter. All attached documents will be recorded electronically.

Sample application to the tax office

The application for the right to apply a property tax deduction has a specific form recommended for use by the Federal Tax Service of Russia. The form is contained in the letter of this department dated 10/06/2016 No. BS-4-11/ [email protected] Despite the fact that formally the use of a document of a certain form for such a purpose is not mandatory, it is better to submit an application to the Federal Tax Service on the recommended form, since the tax service it was developed with the aim of uniformity in the documentation used.

On our website you will find a sample application for receiving the 1st notice of the right to a property deduction (through the employer), completed on the current form:

A sample application for the return of overpaid personal income tax, submitted with the 3-NDFL declaration, can be downloaded here.

We reduce taxes in connection with the purchase of property

To reduce the personal income tax base by the cost of purchased housing and mortgage interest, a special application is prepared. It is submitted to the tax office, and if the application is approved, they receive a benefit through the employer. A separate procedure for writing an application for a tax deduction to the tax office is described below. But when the tax authorities confirm the possibility of reducing the personal income tax base, the employee asks not to withhold only the amount indicated in the notification from the tax service.

IMPORTANT!

An individual has the right to receive a benefit not only through the employer, but also through the Federal Tax Service, including by submitting a declaration, supporting documents and an application through the taxpayer’s personal account. The only difference is that the tax authorities will return the entire amount for the previous year (years) at once, and the employer will return it in parts, without withholding personal income tax from current income.

Results

The right to apply a property deduction for personal income tax arises when acquiring housing through its purchase or construction. The scope of the deduction includes all actual costs incurred in connection with the emergence of the corresponding object, and interest costs on the loan taken for the purchase (construction).

The deduction becomes applicable after acquiring ownership of the property and completing the investment in it. The Federal Tax Service must be notified of the emergence of the right to it either in the year of its occurrence or upon its completion. In the first case, you can start receiving the deduction at your place of work immediately, in the second, its amount attributable to the past year will be returned by the tax authority.

Since the amount of the deduction usually exceeds the employee's annual income, the tax refund in connection with it is carried out over several years. In this regard, an application for the use of a deduction is submitted several times until it is fully used. To fill out an application, the Federal Tax Service of Russia has developed a recommended form.

Sources:

• tax code
• Order of the Federal Tax Service of Russia dated January 14, 2015 No. ММВ-7-11/ [email protected]

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