Do I have to pay tax when buying an apartment? To give an accurate answer to this question, citizens should be well versed in taxation. Otherwise, a person will face serious problems. Tax arrears are fraught with fines. That is why everyone should understand when and for what they need to pay. What to do with the purchase of housing? Are there any taxes when making a deal? If so, in what sizes? Can I count on any bonuses from the state?
How to sell or buy a home
Real estate transaction support is a very common and popular service. She is needed when buying a new home, and during the acquisition of "secondary housing". The relevant agencies or notaries with lawyers accompany the purchase and sale of real estate.
Many are interested in how to sell housing. If the seller agreed to support real estate transactions, you can adhere to the following algorithm of actions:
- Collect documents for registration of the sale.
- Contact a real estate agency and create an advertisement for the sale.
- Meet with potential customers and discuss the nuances of the operation. At this point, a housing demonstration usually takes place.
- Go to a real estate agency and sign a sales contract. If a person independently performs the operation, you can contact a notary.
- Pay for services from authorized persons.
- Issue a receipt on receipt of money for the operation to the buyer. They also give him an act of acceptance and transfer of housing.
- Pick up your copy of the purchase agreement.
That doesn't sound so scary. In fact, the support of real estate transactions in Russia makes life much easier. Only such an approach to the sale of property involves considerable additional costs.
How to choose a price
Do I have to pay tax when buying an apartment? First you’ll have to understand how the seller to establish the right price tag on their property. Much will depend on this.
When putting up a house for sale to the owner, it is necessary to evaluate the “real estate”. The verification will determine the true cadastral value. It is necessary to build on it when selling a home.
Too overpriced the price tag for the property or its understated value makes the sale and purchase unprofitable. Therefore, it is better to make a small margin on the cadastral price.
Who will pay
What taxes should be paid when buying an apartment? And what can citizens of the Russian Federation count on?
Taxation on the sale of housing takes place. Taxes will be paid by the seller of real estate. Buyers do not bear any additional costs. So, they can not worry about paying taxes for the operation.
Is there any way to get rid of this responsibility? Yes, but not always. Next, all possible scenarios will be considered.
Income Payments
Do you pay tax when buying an apartment? Yes, but this applies directly to the seller. Buyers, as already mentioned, do not bear additional costs for the acquisition of property. Moreover, under certain circumstances, a new homeowner may receive a property type tax deduction. This will be discussed later. First, we will deal with taxation.
Is the purchase and sale of an apartment taxed? Yes. The seller will have to transfer personal income tax to the state treasury. Payment is almost always made. Only occasionally personal income tax in the amount of 13% of the amount under the contract will not have to pay. Exceptions will be discussed later.
Personal income tax for non-residents
It is worth paying attention to the fact that a person’s lack of citizenship of the Russian Federation does not exempt him from liability to tax authorities. If there is a sale of housing or other property belonging to a non-resident, a person will still need to transfer income tax to the Federal Tax Service.
The difference is only in the interest rate. For non-residents of the Russian Federation, today it is 30% of the amount prescribed in the contract of sale.
Innovations in Russia
Do you pay tax when buying an apartment? Sellers - yes, buyers - no. This norm is spelled out at the legislative level. Moreover, since 2016, significant changes have been introduced to the Tax Code of the Russian Federation. They began to mislead the population.
The thing is that earlier, when calculating the tax when buying an apartment and selling it, the market value of the property was taken into account. Now this indicator has been abolished. From now on, citizens will have to prepare for the calculation of personal income tax according to the new rules. The cadastral value of housing will be taken as the tax base.
This means that it will depend a lot on such an indicator. Yes, the seller can indicate any value in the sales contract. Only tax authorities will take into account exactly the cadastral price tag when calculating personal income tax. Large deviations from the corresponding amount up or down will lead to huge costs. So, such agreements will be unprofitable.
FTS Law
Selling an apartment below the cadastral value is not a very frequent phenomenon, but it can occur in real life. How will taxes on property sold be calculated in this case?
Since 2016, the Federal Tax Services received the right to choose the method of calculating personal income tax on the sale of real estate. Taxes may be charged on the cadastral value multiplied by a factor of 0.7. A similar principle is not so common.
As a rule, tax authorities are guided by it when the price of the contract is lower than the amount received from multiplying the cadastral value of the object by a factor of 0.7.
Accordingly, in this case, income may be lower than real expenses. The seller will have to think carefully before greatly underestimating the value of his property.
Strong excess
What tax should an operation party transfer to the state when buying an apartment? It's about income tax. They are exempted only under certain circumstances.
What if a person puts up housing for sale with an overvalued price? It implies a significant increase in the price of the contract compared to the cadastral.
This is another not the most profitable scenario. Why? It was determined whether to pay tax when buying an apartment. But what size is not clear. It all depends on how much is indicated in the purchase agreement. So, it is not recommended to overstate the cost of housing. Not always such an action is beneficial to the seller. The fact is that personal income tax will be calculated exactly from the amount specified in the contract of sale. And the payment will have nothing to do with the cadastral price tag.
No rating
What tax when buying an apartment do modern citizens list? We are talking about the transfer of personal income tax. Cash is levied exclusively from the seller of the property. Buyers already bear considerable expenses.
What should I do if the property does not have cadastral value? You can conduct an independent assessment, and then enter the relevant information into the Rosreestr database. It takes a lot of time and effort.
Many citizens simply pay personal income tax in the amount of 13% of the amount prescribed in the agreement on the sale. As was emphasized earlier, a similar scenario occurs when housing has no cadastral value. Only in this case is it allowed to use a market price tag when calculating income tax.
Low cadastral value
Based on the foregoing, it follows that home sellers must pay personal income tax in the amount of 13%. Either the cadastral value or the market value will be taken as the tax base.
What about the minor exceptions to the rules? Is it necessary to pay tax when buying an apartment if the cadastral value of the object is too small?
Modern citizens may not be puzzled by the transfer of personal income tax when selling property if the cadastral price tag of real estate is less than 1,000,000 rubles. At the same time, the price of the “sale and purchase” agreement should also be no more than one million rubles.
In real life, such objects are almost never found. So, you should not rely on them.
Long tenure
Property acquisition tax in Russia is not levied. Moreover, buyers may, under certain circumstances, rely on a property tax deduction. Taxes on the sale of real estate in the Russian Federation are paid only by sellers.
But not always. Long ownership of the property exempts owners from the need to pay personal income tax. What does it mean?
If the property was acquired after 2016, then it will not be necessary to pay income tax on the sale of this property after 5 years of owning housing. In our case, since 2021.
This rule greatly simplifies the life of citizens. Some homeowners now specifically wait 5 years from the date of acquisition of property rights to the object, so as not to face taxes.
For old property
But this is far from all. There are a lot of nuances when buying an apartment. What should I do if an object put up for sale was purchased by the seller before 2016?
Such property is subject to slightly different tax exemption rules. If the seller has owned housing purchased before 2016 for more than 3 years, you may not have to pay income tax.
When you must pay
Do I have to pay tax when buying an apartment? Taxation per transaction is provided, but only for the seller. Buyers with the Federal Tax Service will not have to talk about this.
Based on the foregoing, it follows that:
- Personal income tax for the sale of housing is paid if the owner acquired the property after 2016 and at the time of the transaction has owned it for less than 5 years.
- Income tax is not paid when the property has been owned for more than 3 years. In this case, the property must be registered in the ownership of the seller until 2016.
- There is no taxation on the purchase and sale of housing with the cadastral and market value of an object not exceeding 1,000,000 rubles.
So, you have to pay taxes in all other cases. That is, with property ownership less than 5 or 3 years, respectively. Filling all this will not be difficult.
Additional expenses
But this is not all the expenses that the population will face. The thing is that in addition to mandatory taxes, citizens have to pay for transaction support.
Usually the agency commission depends on the price of the contract. In practice, you have to pay from 10 to 50 thousand rubles. Who exactly will incur costs, the parties discuss in advance. Most often they fall on the shoulders of buyers in the form of a mark-up on purchased housing.
Registration of the right
There is no tax on the acquisition of property in Russia. Instead, the buyer will have to pay to register the transfer of rights to the property. Payment has nothing to do with taxes, but you need to know about it.
For registration of property rights of an individual they pay only 2 thousand rubles. Organizations and legal entities will have to pay 22 thousand rubles for a similar operation. Cash is usually charged at the time of registration of the sales agreement.
Right to deduction
Buying an apartment by a pensioner is another not the most common phenomenon. Does such a person need to pay for registration of rights? Yes. And if a pensioner acts as a seller of housing, will taxation take place? Yes too. The age of a citizen does not affect the need to pay personal income tax.
However, real estate buyers can reimburse themselves 13% of the amount transferred for the purchase of housing. This is a tax deduction request. It relies on a person if:
- the buyer pays personal income tax in the amount of 13% of his salary;
- Housing is bought in the name of the applicant and at his own expense;
- citizen has a permanent official place of work;
- the potential recipient of the deduction has the citizenship of the Russian Federation.
Moreover, in the form of a property return, it is impossible to return more than 260,000 rubles in total. That's not all. A person cannot claim a deduction for an amount in excess of the taxes listed in a given year.
How to ask for a deduction
What tax when buying an apartment, and under what conditions it needs to be paid, was analyzed above. How to make a tax deduction?
The home buyer must:
- Form a package of documents in the established form.
- Fill out and submit an application to the local department of the Federal Tax Service.
- Get a response from the tax office regarding deductions.
- Wait for the transfer of money to the specified account.
In reality, everything is simpler than it seems. Problems can arise only at the stage of preparing documents for deduction. They are always different. More accurate information is best clarified on a case-by-case basis at the Federal Tax Service.
Tax payment deadline
Do you pay tax when buying property in the Russian Federation? Yes, though not always. Moreover, self-calculation is not recommended. A citizen runs the risk of making a mistake.
Up to what point is it necessary to pay for the sold housing? Usually this information is indicated in the sent payment order. It will be necessary to apply with a declaration in the form of 3-NDFL as soon as possible. As a rule, you have to report on income until April 30, for the year following the period in which the sale was carried out.
Summary
Taxation in Russia raises many questions among the population. The article presented all possible cases related to taxation at the conclusion of real estate purchase and sale transactions. All the above examples are relevant for any "real estate", and not just for housing.
Is there anything else that can be legally exempted from personal income tax? Not. If the seller does not pay income tax on time, he will have to face a fine. Usually it makes up 30% of the debt to the Federal Tax Service.