Personal income tax deduction for the purchase of real estate Art. 220

Article 220 of the Tax Code of the Russian Federation on property tax deductions is the main source that regulates exactly how the tax base is reduced in the case of the purchase of real estate and what conditions must be met.

However, most individuals still have some questions after reading this legislative act. In this regard, this article will describe as clearly as possible the procedure for obtaining a property-type tax discount.

Definition

Property deduction is the return of part of the finances that were spent on the purchase of real estate. The refund is made from income taxes paid in a certain tax period.

A citizen has the right to receive a deduction when buying or selling a residential property or plot of land. In the case of the sale of real estate, a citizen may not pay fully or partially income tax on the amount received as a result of the transaction. This happens by reducing the tax base for personal income tax.

But citizens often do not take advantage of deductions in real estate transactions, because they simply do not know about this possibility.

The concept of property return

It can be issued to each person on the basis of Art. 220 NK. The tax deduction law assumes that only people for whom personal income tax is transferred to the budget can take advantage of such a state benefit, so they must be entrepreneurs or officially working citizens.

You can use this refund when concluding the following transactions:

purchase or acquisition of residential real estate, even if borrowed funds from banks are attracted for this, it is important to issue a targeted loan represented by a mortgage;
sale of a property if it has been owned for less than three or five years, depending on the nuances of its receipt;
sale of a share in the authorized capital of an enterprise;
concluding a transaction for the assignment of rights under the DDU;
purchase from a private owner of a plot of land and the real estate on it for the needs of the state or municipality.

Property tax deductions allow a citizen to return previously paid personal income tax. If real estate is sold, then due to such a benefit the tax base is significantly reduced, which leads to a reduction in the tax paid on the income received from the sale.

In what cases can a deduction be received?

Reimbursement of part of the costs of purchasing a property is a significant help. However, it is not available to everyone and not always.

Deductions are issued if a citizen buys:

house;
apartment;
room;
premises in a townhouse;
land plot under a residential building;
land for housing construction.

The benefit also applies to the purchase of a share in any of the objects listed above. If ownership of a commercial or other real estate property is registered, deductions cannot be obtained.

Conditions for receiving benefits

If a citizen, after purchasing real estate, plans to apply for a deduction, then he takes into account the requirements for this process. These include:

It is important, before contacting the Federal Tax Service or the employer, to obtain an extract from the Unified State Register of Real Estate, which indicates that the citizen has become the full owner of the property;
pensioners can count on this benefit from the state only on the condition that they continue to officially work in retirement, so employers pay personal income tax for them;
Additionally, pensioners can receive a deduction three years before retirement;
when working people apply to their employer, a deduction is issued from the next month, regardless of the date of application, and when using the Federal Tax Service, you will have to collect the necessary package of documents annually.

Although many people have difficulties preparing documentation, they still prefer to contact the inspectorate for benefits. This is due to the fact that they can count on a large lump sum of funds.

Varieties

The purchase of a residential property is made in cash or on credit. The amount of the refund depends on how exactly the transaction was paid for. There are two main deduction options:

basic;
mortgage

If a citizen deposits the entire amount at once, a portion of the funds spent may be returned. If a mortgage was issued, then you can count on reimbursement of part of the interest that was paid on the loan. The deduction when applying for a mortgage loan will be extended over time.

Rules for drawing up a declaration

Most often, applicants have difficulty generating a declaration in Form 3-NDFL. The procedure can be performed manually or using a computer. The rules for filling out the document include:

All places where the applicant officially works must be indicated;
based on the data available in the 2-NDFL certificates, information is entered on the amount of the citizen’s income for the year of work;
the full cost of the purchased object is given;
the deduction is calculated;
The applicant's signature is placed on each page.

If a citizen prefers to apply to the Federal Tax Service, then he will have to fill out this document annually.

How much can you expect?

For all officially employed people, income tax is withheld from their wages, its amount is 13%. If a taxpayer pays for the purchase of an apartment or house, then he receives the right to reduce the amount of income tax.

The two concepts should not be confused:

tax deduction is the amount by which taxable income can be reduced;
refundable tax - the amount that can actually be returned, it is 13% of the deduction.

The tax deduction is equal to the amount of expenses incurred by the buyer when completing the transaction, but it cannot exceed 2 million rubles. Accordingly, the maximum amount of tax refundable is 13% of 2 million, that is, 260 thousand rubles.

Thus, if an apartment was purchased for 1.5 million, then you can return 195 thousand rubles. If the costs of real estate amounted to 5 million rubles, then only 260 thousand can be returned, that is, 13% of the maximum deduction amount.

When taking out a mortgage loan, the tax deduction has been increased to 3 million, that is, you can return 390 thousand rubles. If the taxpayer applied for refinancing of a mortgage loan, then this circumstance does not interfere with the right to receive a refund of taxes. But the second loan agreement must indicate that it was issued specifically for refinancing a mortgage loan.

The buyer of an apartment can refinance more than once; this is in no way regulated by law. The only condition for receiving a deduction is that the financial organization that issued the refinancing loan must be registered in the Russian Federation.

If the taxpayer has already received a personal income tax refund on the first mortgage loan, then he will be able to receive a refund on the interest on the loan from the second bank only after the process of returning funds under the first loan agreement is completed.

When selling real estate, you can count on a tax deduction of 1 million rubles. This is the maximum amount that can be deducted from your taxable income. And one more important condition that many people forget about: you cannot return as a tax refund more than the amount of the transferred income tax.

UrDela.ru

Part 1. When determining the size of the tax base in accordance with paragraph 3 of Article 210 of this Code, the taxpayer has the right to receive the following property tax deductions:

The provision of subparagraph 1 of paragraph 1 of Article 220, according to which, when selling property that was owned by the taxpayer for three years or more, a property tax deduction is provided in the amount received by the taxpayer upon the sale of said property, in conjunction with the provisions of paragraph 1 of Article 256 of the Civil Code of the Russian Federation and paragraphs 1 and 2 of Article 34 of the Family Code of the Russian Federation - in their constitutional and legal meaning, cannot be applied without taking into account the basis provided for by civil and family legislation and the moment of emergence of the ownership right to the relevant property of the taxpayer when determining the period during which the property alienated by the taxpayer was in his property.

1) in amounts received by the taxpayer in the tax period from the sale of residential houses, apartments, rooms, including privatized residential premises, dachas, garden houses or land plots and shares in the said property, which were owned by the taxpayer for less than three years, but not exceeding 1,000 in total 000 rubles, as well as in amounts received during the tax period from the sale of other property that was owned by the taxpayer for less than three years, but not exceeding 250,000 rubles in total.

Instead of using the right to receive a property tax deduction provided for by this subparagraph, the taxpayer has the right to reduce the amount of his taxable income by the amount of expenses actually incurred by him and documented expenses associated with the receipt of this income, with the exception of the sale by the taxpayer of securities owned by him. When selling a share (part thereof) in the authorized capital of an organization, when assigning rights of claim under an agreement for participation in shared construction (an investment agreement for shared construction or under another agreement related to shared construction), the taxpayer also has the right to reduce the amount of his taxable income by the amount actually produced them and documented expenses associated with obtaining these incomes.

The paragraph became invalid on January 1, 2007. — Federal Law of 06.06.2005 N 58-FZ.

The paragraph has been deleted. — Federal Law of May 30, 2001 N 71-FZ.

By Resolution of the Constitutional Court of the Russian Federation dated March 13, 2008 N 5-P, the provision of the third paragraph of subparagraph 1 of paragraph 1 of Article 220 was recognized as not contradicting the Constitution of the Russian Federation since, taking into account the systemic connection with the first paragraph of subparagraph 1 of Article 220, shares should be understood as shares in the right of common property.

When selling property that is in common shared or common joint ownership, the corresponding amount of property tax deduction calculated in accordance with this subparagraph is distributed among the co-owners of this property in proportion to their share or by agreement between them (in the case of the sale of property that is in common joint ownership ).

The provisions of this subparagraph do not apply to income received by individual entrepreneurs from the sale of property in connection with their business activities.

When selling shares (shares, shares) received by the taxpayer during the reorganization of organizations, the period of their ownership by the taxpayer is calculated from the date of acquisition of ownership of the shares (shares, shares) of the reorganized organizations;

1.1) in the amount of the redemption value of the land plot and (or) other real estate located on it, received by the taxpayer in cash or in kind, in the event of seizure of the specified property for state or municipal needs;

2) in the amount of expenses actually incurred by the taxpayer:

for new construction or acquisition on the territory of the Russian Federation of a residential building, apartment, room or share(s) in them, land plots provided for individual housing construction, and land plots on which the purchased residential buildings are located, or shares(s) in them ;

to repay interest on targeted loans (credits) received from Russian organizations or individual entrepreneurs and actually spent on new construction or the acquisition on the territory of the Russian Federation of a residential building, apartment, room or share(s) in them, land plots provided for individual housing construction, and land plots on which the acquired residential buildings are located, or share(s) in them;

to repay interest on loans received from banks located on the territory of the Russian Federation for the purpose of refinancing (on-lending) loans for new construction or the acquisition on the territory of the Russian Federation of a residential building, apartment, room or share(s) in them, land plots provided for individual housing construction, and land plots on which the purchased residential buildings are located, or shares (shares) in them.

When purchasing land plots provided for individual housing construction, or a share(s) in them, a property tax deduction is provided after the taxpayer receives a certificate of ownership of the house.

The actual costs of new construction or the acquisition of a residential building or share(s) in it may include:

expenses for the development of design estimates;

expenses for the purchase of construction and finishing materials;

expenses for the purchase of a residential building, including unfinished construction;

expenses associated with construction work or services (completion of a house that has not been completed) and finishing;

costs of connecting to electricity, water, gas supply and sewerage networks or creating autonomous sources of electricity, water, gas supply and sewerage.

The actual costs of purchasing an apartment, room or share(s) in them may include:

expenses for purchasing an apartment, room, share(s) in them or rights to an apartment, room in a house under construction;

expenses for the purchase of finishing materials;

expenses for work associated with finishing an apartment, room, share(s) in them, as well as expenses for developing design estimates for finishing work.

Acceptance for deduction of expenses for the completion and finishing of an acquired house or finishing of an acquired apartment or room is possible if the agreement on the basis of which such acquisition was made specifies the acquisition of an unfinished residential building, apartment, room (rights to an apartment, room) without finishes or share(s) therein.

The total amount of the property tax deduction provided for by this subclause cannot exceed 2,000,000 rubles, excluding amounts used to pay off interest:

for targeted loans (credits) received from Russian organizations or individual entrepreneurs and actually spent on new construction or acquisition on the territory of the Russian Federation of a residential building, apartment, room or share(s) in them, land plots provided for individual housing construction, and land plots on which the purchased residential buildings are located, or shares (shares) in them;

for loans provided by banks located on the territory of the Russian Federation for the purpose of refinancing (on-lending) loans (loans) received for new construction or acquisition on the territory of the Russian Federation of a residential building, apartment, room or share(s) in them, land plots, provided for individual housing construction, and land plots on which the purchased residential buildings are located, or share(s) in them.

To confirm the right to a property tax deduction, the taxpayer submits:

during the construction or acquisition of a residential building (including unfinished construction) or a share(s) in it - documents confirming ownership of the residential building or share(s) in it;

when purchasing an apartment, room, share(s) in them or rights to an apartment, room in a house under construction - an agreement on the acquisition of an apartment, room, share(s) in them or rights to an apartment, room in a house under construction, an act of transfer of an apartment, rooms, shares (shares) in them to the taxpayer or documents confirming ownership of the apartment, room or share (shares) in them;

when purchasing land plots provided for individual housing construction, and land plots on which the acquired residential buildings are located, or shares (shares) in them - documents confirming ownership of the land plot or share (shares) in it, and documents confirming ownership of a residential building or share(s) in it.

The specified property tax deduction is provided to the taxpayer on the basis of a written application from the taxpayer, as well as payment documents drawn up in the prescribed manner and confirming the fact of payment of funds by the taxpayer for expenses incurred (receipts for receipt orders, bank statements on the transfer of funds from the buyer’s account to the seller’s account, sales and cash receipts, acts on the purchase of materials from individuals indicating the address and passport details of the seller and other documents).

By Resolution of the Constitutional Court of the Russian Federation dated March 13, 2008 N 5-P, the provision of paragraph eighteen of subparagraph 2 of paragraph 1 of Article 220 was recognized as not contradicting the Constitution of the Russian Federation, since the provision contained in it, in its constitutional and legal meaning, in conjunction with other provisions of the Tax Code and in the general legal system regulation presupposes the right of a parent who, at his own expense, purchased an apartment in common shared ownership with his minor children, to receive a property tax deduction in accordance with the actual expenses incurred within the limits of the total amount of this deduction established by law.

When purchasing property into common shared or common joint ownership, the amount of property tax deduction calculated in accordance with this subparagraph is distributed among co-owners in accordance with their share(s) of property or with their written application (in the case of purchasing a residential house, apartment, room in common joint property).

The property tax deduction provided for by this subclause does not apply in cases where the payment of expenses for the construction or acquisition of a residential house, apartment, room or share(s) in them for the taxpayer is made at the expense of employers or other persons, maternal (family) capital , aimed at ensuring the implementation of additional measures of state support for families with children, through payments provided from the federal budget, budgets of constituent entities of the Russian Federation and local budgets, as well as in cases where the purchase and sale transaction of a residential building, apartment, room or share (shares) in them is committed between individuals who are interdependent in accordance with Article 20 of this Code.

Repeated provision of the property tax deduction provided for by this subparagraph to the taxpayer is not permitted.

If a property tax deduction cannot be used in full during a tax period, its balance can be carried forward to subsequent tax periods until it is fully used.

Part 2. Property tax deductions (with the exception of property tax deductions for transactions with securities) are provided when the taxpayer submits a tax return to the tax authorities at the end of the tax period, unless otherwise provided by this article.

A property tax deduction when determining the tax base for transactions with securities is provided in the manner established by Article 214.1 of this Code.

Part 3. The property tax deduction provided for in subparagraph 2 of paragraph 1 of this article may be provided to the taxpayer before the end of the tax period when he contacts the employer (hereinafter in this paragraph - the tax agent), subject to confirmation of the taxpayer’s right to a property tax deduction by the tax authority for form approved by the federal executive body authorized for control and supervision in the field of taxes and fees.

The taxpayer has the right to receive a property tax deduction from one tax agent of his choice. The tax agent is obliged to provide a property tax deduction upon receipt from the taxpayer of confirmation of the right to a property tax deduction issued by the tax authority. The taxpayer’s right to receive a property tax deduction from a tax agent in accordance with this paragraph must be confirmed by the tax authority within a period not exceeding 30 calendar days from the date of filing a written application by the taxpayer, documents confirming the right to receive a property tax deduction, which are specified in subparagraph 2 paragraph 1 of this article. If, at the end of the tax period, the amount of the taxpayer’s income received from the tax agent was less than the amount of the property tax deduction determined in accordance with subparagraph 2 of paragraph 1 of this article, the taxpayer has the right to receive a property tax deduction in the manner provided for in paragraph 2 of this article.

The transfer by taxpayers of personal income tax of losses to the future in accordance with Articles 214.1 and 220.1 of the Tax Code of the Russian Federation is carried out in relation to losses received starting from the tax period of 2010.
‹ Article 219 (Tax Code of the Russian Federation). Social tax deductions Up Article 220.1 (Tax Code of the Russian Federation). Tax deductions when carrying forward losses from transactions with securities and transactions with financial instruments of futures transactions ›

How many times can you get a tax deduction?

Until 2014, the tax deduction for the purchase of housing could be obtained once in a lifetime. Since 2014 the order has been changed. Now you can receive a deduction several times, provided that its size does not exceed 2 million rubles.

Example: if you bought an apartment for 1.2 million rubles and received a tax refund in the amount of 156 thousand, then when purchasing another apartment you can again apply for a deduction, but no more than 800 thousand rubles. That is, the total deductions should not exceed 2 million rubles.

Important: if a person exercised his right to a tax deduction before 2014, then he cannot apply for a secondary one, even if the amount was less than 2 million rubles.

The same rule applies when making deductions when selling a home, only the maximum amount should not exceed 1 million rubles.

Paragraph 1

The first part of the legislative act, to which we turned for help earlier, states that an individual can reduce the size of his tax base in the following cases:

When selling a property. This can be not only the sale of an object that is entirely owned by the taxpayer, but also an object that is in shared ownership. Also, an individual may qualify for a tax discount when leaving the ranks of shared owners.
In case of loss of rights to land territory. In some cases, the state seizes this property from the taxpayer, who is the legal owner of the land plot, as well as the housing facility located on it, for the purpose of municipal needs. In such a situation, a deduction is charged to the individual.
When buying or building housing. If an individual decides to invest material resources in the purchase of a house or part of it, an apartment, a room in a communal apartment, a plot of land, or spend money on the construction of a property, then he automatically receives the right to a tax discount.
When paying interest on property. Today, due to the fact that the cost of housing reaches quite high limits, individuals are increasingly using mortgage or loan services. When taking out a loan, the taxpayer undertakes to pay not only the full cost of housing, but also additional interest, for which personal income tax is also returned.

Who has the right to registration

According to the law, you can apply for a tax deduction when purchasing a home if the following conditions are met:

the applicant is a resident of the Russian Federation;
the housing being purchased is located on the territory of the country;
the citizen has legal income, from which income tax is withheld at the rate of 13%;
When paying for the transaction, maternity capital funds are not used.

If residential real estate is registered in the name of a minor, then a tax deduction for it can be received by the parents or guardian of the child owner.

There are special registration conditions for pensioners. If a working pensioner buys housing, he can apply for benefits on a general basis. If a citizen is retired, then he has the right to use the transfer of personal income tax. This means that a pensioner can apply for a deduction taking into account the transferred income tax three years before purchasing an apartment.

When is a deduction not allowed when selling objects?

When selling real estate, it becomes necessary to pay personal income tax on the income received. This applies to a situation where the property has been owned by a private individual for less than three or five years. If the ownership period exceeds this period, then there is automatically no need to pay tax.

If you need to sell the apartment as soon as possible, then tax is paid on the income received. To reduce the tax base, a deduction of 1 million rubles is applied. The sale price of the property is reduced by this amount, after which 13% is calculated from the resulting value. The correctly calculated amount is transferred to the budget.

The tax deduction law says that it will not be possible to obtain such a benefit under the following conditions:

securities are sold;
property that was used by the citizen to conduct business activities is sold;
the citizen owned the property for more than three or five years, so there is no need to use the deduction at all, and it cannot be provided based on the taxpayer’s application.

Most often, citizens are faced with the need to obtain a deduction after purchasing real estate. This gives them the opportunity to receive a significant amount of funds from the state, which they then use for any purpose.

What expenses are taken into account?

Expenses that can be included in the tax deduction:

funds for the purchase of housing (the amount specified in the purchase and sale agreement is taken into account);
materials and other goods for repairs;
funds spent on repair services.

If the apartment was purchased under a mortgage lending program, then bank interest is included in the expenses.

In the event that a plot for construction has been purchased, the following expense items are taken into account:

development of a house project;
cost of construction and finishing materials;
payment for construction and finishing works;
work on connecting communications (pipelines, power lines, etc.).

All expenses incurred must be documented, otherwise they cannot be included in the deduction amount.

Does the cadastral value affect the benefit?

According to Article 220 of the Tax Code of the Russian Federation, a tax deduction can indeed significantly reduce the tax base, therefore the payment transferred to the state is also reduced. Previously, when concluding transactions, citizens often agreed with buyers that the contract should indicate not the real cost of the object, but a lower price. Often, the purchase and sale agreement specified the cost of the apartment up to 1 million rubles. This allowed sellers to avoid paying any tax after using the tax deduction when selling a property.

But now it will not be possible to take advantage of this tax reduction scheme. In 2021, a bill was introduced, on the basis of which, in case of a low indicator in a purchase and sale agreement, the cadastral value of the property is taken into account when calculating the tax if it is higher than the sale price. Therefore, it will not be possible to avoid paying tax.

If the apartment is in marital ownership

Often apartments or plots of land are purchased by spouses and are registered in equal shares. In this case, the deduction has some conditions.

If a transaction is made by spouses who are officially married and is registered in the name of two owners (husband and wife), then both parties to the transaction acquire the right to a deduction. But this does not mean that both of them can receive it in full.

It is necessary to submit an application for distribution of the deduction amount between the spouses. How to distribute it is a personal matter for each couple. Depending on the situation, the full deduction can be issued to only one of the spouses or it can be distributed in shares between the husband and wife.

If the wife has a small salary and a low amount of paid income tax, then it is more profitable to issue a deduction only for the husband, so as not to stretch out the receipt of refunds for several years.

If a residential property is purchased by spouses, but with the personal money of one of them (premarital or inherited funds), and the second spouse is not a co-owner, then it will not be possible to distribute the deduction. It is issued in the usual manner to the spouse to whom the property is registered. An application for redistribution of deductions between spouses is not submitted.

If an apartment is acquired as shared ownership by unmarried persons, then the same procedure applies. All owners have the right to deduct in pre-agreed shares.

What documents are being prepared?

A list of documents for tax deductions can be obtained directly from Federal Tax Service employees. To apply for the benefit you will need the following documents:

a correctly completed declaration in form 3-NDFL, and to carry out this process it is advisable to use special programs issued directly by the tax service;
2-NDFL certificate for a year of work, which must be taken at the place of work, and if a citizen works in several organizations at once, then several certificates are prepared for him;
copy of the passport;
an application for a benefit, drawn up by hand and containing information about the bank account details where, after a positive decision is made, the funds will be transferred;
purchase and sale agreement or DDU for the purchased object;
payment documents confirming that the citizen actually transferred all the necessary funds to the seller for the property;
technical papers for an apartment or house;
if borrowed funds were used to purchase the property, then you will additionally need a loan agreement and a bank statement;
If the property was purchased for spouses, then you need to draw up an application for the distribution of the deduction.

A tax deduction certificate indicating the amount of income allows you to determine how much money can be paid to a citizen in one year.

If the property was purchased by spouses, they can draw up a statement on the basis of which the benefit is provided only to the husband or wife. Typically, this decision is made if one family member is unemployed or receives too little salary, and therefore cannot count on a significant amount of return.

How to calculate the deduction amount

It’s not difficult to calculate the amount of tax deduction yourself, you just need to be careful.

Calculation procedure:

collect documents that confirm expenses;
calculate the amount;
compare the amount received with existing limits; if expenses are more than 2 million rubles (or 3 million rubles for a mortgage), then the maximum limit must be taken as the base;
calculate the amount of income tax paid to the budget for the selected tax period;
calculate how much 13% of the declared amount of expenses will be;
Compare the resulting figure with the amount of taxes paid.

If the amount of personal income tax for the selected period is greater than the tax to be refunded, then it is refunded in full. If less taxes were paid, then only the amount already transferred to the budget can be returned.

The nuances of receiving a deduction when purchasing an object

Property tax deductions can be used not only when selling real estate, but also when buying it. This benefit is considered more popular and often used. It comes in two varieties:

Refund for the purchase or construction of housing. The essence of the tax deduction is that a certain part of the funds spent on the acquisition or construction of an object is returned to the buyer. To do this, it takes into account how much personal income tax was transferred for it last year. But at the same time, the state has set a limit of 2 million rubles. It is from this amount that you can return a maximum of 13%. Therefore, every person in life can receive up to 260 thousand rubles. such a benefit. Balances can be carried over to future purchases until the deduction is fully used. If the property costs more than 2 million rubles, then the benefit is fully applied, so it will not be possible to register it for future acquisitions.
Deduction for mortgage interest. Often, citizens do not have their own funds to purchase expensive real estate, so they have to take out a mortgage from a bank. For the use of borrowed money you have to pay significant interest, from which you can get a benefit. It is provided for a maximum of 3 million rubles. Therefore, you can get 390 thousand rubles with this benefit. This refund can only be used once, so balances do not carry over to future purchases.

The above benefits are completely different deductions, so they can be issued separately. It is advisable to initially apply for the first deduction, and after it is exhausted, use a refund on the interest paid to the bank.

What else do you need to know

Taxpayers who would like to receive a tax refund when purchasing a home may find it helpful to remember:

A tax refund on a mortgage deduction can only be received as the loan is paid off to the bank. That is, reimbursement in this case will be made in parts and will stretch over several years.
If a citizen decides to return taxes in the current year, he can submit an application for the first year and returns for the three previous years. The deduction will be made for three years, and if a balance is found, it will be carried over to the next tax period. The second option is that a citizen has the right to submit a declaration for the current year, transferring the unused portion to subsequent years.
If the purchase and sale transaction is concluded between close relatives, then the tax will not be refunded. Close relatives are parents and children, grandparents and grandchildren, brothers and sisters.
Participants in shared construction must understand that they can only receive personal income tax compensation for three years. If construction lasts for a long time, then it will not be possible to receive a deduction in full.

Knowing these nuances will help you avoid mistakes when preparing documents to receive a refund.

When is a refund not provided when purchasing real estate?

There are situations when even when purchasing an object it is impossible to receive a benefit. The tax deduction law contains the following exceptions:

Previously, the citizen had already managed to exercise his right, therefore he had exhausted the return limit;
housing was purchased using government funds as part of subsidies;
the employer's money was used during the purchase of the property;
the citizen does not have an official income, so personal income tax is not transferred for him, which leads to the inability to apply for this type of benefit;
the buyer is a pensioner, and since no tax is charged on the pension, he will not be able to return it;
real estate is purchased from a close relative, so the transaction is considered interdependent.

The above points must be taken into account by every citizen, since if he tries to deceive the tax inspectorate, this will not only lead to a refusal to receive a refund, but may also become the basis for bringing the offender to justice. His actions may be regarded as fraud, so it is advisable to understand the rules for applying for this type of benefit in advance.

Benefits when selling real estate

The Tax Code provides a number of benefits for real estate sellers. These rules apply to all objects, including non-residential buildings.

According to Art. 217.1 Tax Code , the minimum maximum period of ownership of an object, which upon sale will be exempt from paying personal income tax, is five years. However, there are exceptions. The period of ownership of 3 years is retained if the right to property is obtained:

as a result of privatization;
by right of inheritance or by agreement of gift from a close relative;
under a life annuity agreement with a dependent.

If the ownership period is met, you will not have to pay income tax when selling. For all other cases, Art. 220 of the Tax Code (clause 1 and clause 2), according to which the seller can use a tax deduction from the sale price. Deduction amount:

for residential properties – 1 million rubles;
for non-residential facilities – 250 thousand rubles.

If the price specified in the purchase and sale agreement is less than the cadastral price by 70% or more (as of January 1 of the year in which the transaction is made), then the tax will be levied on an amount equal to the cadastral value. This rule was adopted to identify cases of fraud when the contract indicates a significantly reduced price that does not correspond to the actual amount received.

Important: the laws of the constituent entities of the Russian Federation may indicate other periods of ownership of objects before sale, and also change the coefficient used to calculate the fair price of an object for tax purposes.

Basic settings

In addition to the above rules regarding the calculation of property and material compensation, the following provisions of Article 220 of the Tax Code of the Russian Federation require attention:

Maximum deduction amount. An individual who has become the owner of an expensive property can apply for a deduction in the amount of no more than two million rubles, that is, receive the maximum possible compensation in the amount of 260,000 rubles. For example, if the cost of a house is 10,000,000 rubles, then 13% of it will be equal to 1,300,000 rubles, but this amount cannot be obtained. The taxpayer will be credited only 260,000 rubles.
Repair costs. If the contract for the purchase of a housing property indicates that it requires repair work, then the new buyer can take advantage of a tax discount if money is spent on improving living conditions. As a rule, this includes finishing the premises, installing electrical supplies, gas supply, costs for design documentation, as well as some other services.
Availability of necessary documents. In addition to the basic papers required for calculating a deduction of any type, in order to return personal income tax for property, you will need a contract for the purchase of a housing property, title to property, payment documents, as well as a number of additional papers, depending on the specific situation.

Design rules

To apply for deductions, you must contact the authorized authorities. You can submit an application:

to your local tax office;
at the MFC.

If it is not possible to contact these organizations in person, you can send documents to the Federal Tax Service by registered mail. But in this case, the registration process may be significantly delayed.

An important point: you must contact the Federal Tax Service department at the place of registration, even if the person lives in another place.

There is another option - to apply for a deduction to the accounting department of the organization in which the taxpayer works. In this case, the accounting department must stop withholding personal income tax from wages in the amount of tax refundable.

Procedure

It is not difficult to apply for a deduction required by law. But for the process to go smoothly, you need to prepare in advance. Recommended procedure:

complete and formalize a transaction for the acquisition or sale of a residential property;
fill out for the tax period - it is impossible to receive a deduction without completing this document;
collect documents confirming purchase or construction costs;
write an application to the authorized bodies, attach a declaration to it and submit a package of documents in person or send by mail;
wait for a response from the tax service.

If the answer is positive, then all that remains is to wait until the money is transferred to the account specified in the application. Tax refunds are not issued in cash.

If the Federal Tax Service refuses to receive a deduction, then you will need to find out the reasons for this decision. Since the refusal is issued in writing, the reasons for the refusal will be indicated on the form. If these are small errors, then you should try to correct them within 1 month, then you will not have to start the entire registration process all over again.

Rules for applying for benefits after the sale of housing

Such a refund is considered easy to obtain, since there is no need to prepare a lot of documents or wait for a decision from the tax office. Therefore, to achieve this, the following steps are performed:

an application for benefits is drawn up in the form of the Federal Tax Service;
the 3-NDFL declaration is filled out correctly, where information about the object sold and the amount of funds received is entered;
documents for the sold object are transferred.

During the preparation of the declaration, the section intended for deduction must be filled out. It indicates the possibility of using a benefit in the amount of 1 million rubles. A calculation is carried out directly in the document, allowing you to determine the optimal amount of tax after using the deduction. You need to transfer the amount calculated in the declaration.

How to fill out a tax return

Filling out the declaration should not cause any particular difficulties, but it is important to avoid mistakes.

You can fill out the declaration “the old fashioned way,” that is, manually. But it is much easier and more convenient to use special programs - “Taxpayer Legal Entity” or another convenient for a citizen. If you plan to file a declaration for a property deduction for 3 years, you will need to fill out three separate documents.

Declaration forms change periodically. It is necessary to fill out the form that is used during the period when the taxpayer applies for the deduction. This is a very important point - using a form for another year may result in refusal to issue a deduction.

The declaration must indicate:

the amount of expenses incurred that are offered for deduction;
the amount of income subject to taxation;
information from prepared documents.

When using a program to fill out a declaration, the filling process is greatly simplified. You will only need to fill out a few columns with the prepared data. And the program will perform all calculations automatically.

Collection of documents

To submit an application, you need to collect a package of documents. Depending on the type of deduction, a different list of papers is required, but the basic package will be the same. You need to prepare:

passport;
application in a certain form;
completed tax return;
certificate of income received;
a contract for the purchase and sale of real estate or land or a mortgage loan agreement;
checks, contracts and other documents to confirm expenses;
EGRN extract.

These documents will be required when applying for any deduction. If you need to receive a mortgage deduction, you should additionally attach a schedule for making loan payments.

If a deduction is made in shares for spouses, then, in addition to the documents listed above, you need to prepare:

Marriage certificate;
birth (or adoption) certificate of children (if there are children in the family);
marriage contract, if one has been concluded.

If the apartment is purchased with the personal money of one of the spouses, it is necessary to attach documents confirming this fact.

When visiting the tax authorities in person, you must prepare originals and copies of documents. If you plan to send papers by mail, then all copies must be certified by a notary; originals are not sent by mail.

After submitting the documents, you need to wait for a response - approval or refusal. It is difficult to say how long you will have to wait, but the process of reviewing applications is slow. On average, the answer comes within 2 months. The money will also not come immediately after approval; it can be received in another 1-2 months.

Calculation of deductions when purchasing an object

Calculating your tax deduction is considered a simple process. It can be performed automatically, for which the “Legal Taxpayer” program or various online calculators on the Internet are used. To do this you need to have the following information:

the size of the citizen’s official earnings for the last year of work;
balance of deduction;
the amount of tax paid for the year of operation.

For example, an apartment was purchased by a citizen for 1.7 million rubles. For the last year of work, he received a salary of 350 thousand rubles, so personal income tax was transferred for him in the amount of 45,500 rubles. This is the amount that he can receive in one year from the Federal Tax Service. The total amount of the deduction will be equal to: 1,700,000 x 13% = 221 thousand rubles. The balance represented by 39 thousand rubles is transferred to the next purchases.

Calculating the amount of tax deduction is really simple. To do this, you can use programs or standard formulas.

Why might there be a refusal?

The application is not always approved; sometimes the applicant receives a refusal. The denial form must list the reasons why the taxpayer cannot receive the deduction.

Common reasons for refusal to issue a deduction:

the declaration was completed with errors;
the attached certificates have expired;
expense documents were found to be forgeries;
the package does not contain enough documents to complete a refund request;
the deadline for submitting an application for a deduction was missed;
The applicant has no rights to receive a refund.

If the reasons for the refusal are unclear, the applicant may contact the tax authority for clarification. If the mistakes made can be corrected, then this should be done as quickly as possible so that you do not have to start the entire procedure over again.

Registration of a tax deduction is a simple procedure. But if a citizen believes that this is beyond his strength or he does not have time to collect and submit papers, then it is better to contact a lawyer for help. You will have to pay for the services of an intermediary, but the taxpayer will be spared the not-so-pleasant responsibility of independently doing “paperwork” and communicating with tax authorities.

Stages of receiving a refund through the Federal Tax Service

Most often, citizens prefer to submit an application for a tax deduction to the Federal Tax Service. This allows you to receive a large sum of funds at a time. The procedure will have to be repeated annually until the benefit is exhausted.

How to get a tax deduction for a house? To do this, follow the steps:

Initially, the necessary documents are collected to obtain the benefit;
an application for its receipt is drawn up;
the tax return in form 3-NDFL is filled out correctly;
the documentation is transferred to the Federal Tax Service department;
then you need to wait three months, during which the papers are checked by specialists;
if there are no various problems in the papers, then the required amount of funds is transferred to a bank account, and its details must be indicated when drawing up the application.

As a standard, it will be possible to receive funds only 4 months after the documents are transferred.

Reasons for refusal

Federal Tax Service employees may refuse to provide a refund for various reasons. The main reasons include:

lack of necessary documents;
the presence of significant errors in the submitted papers, which must be eliminated when filling out the documents again;
incorrectly drawn up declaration;
the applicant does not have the right to a deduction;
It turns out that the submitted documents are fake.

If it really turns out that a citizen tried to obtain a benefit using forged documents, then this will not only become a basis for refusing the deduction, but also a reason for bringing the applicant to criminal liability. Therefore, the preparation of the necessary package of documents should be approached responsibly.