Today, a tax deduction on property will be presented. This question is of interest to many residents of Russia. After all, part of the expenses incurred in obtaining this or that property can be returned. The main thing is to have proof of expenses with you, as well as meet certain requirements. So what to look for first? What information should every citizen who is interested in tax deductions for property be familiar with? All this will be described later. Understanding this topic is not as difficult as it seems. Especially if you prepare for the process in advance.
The deduction is ...
The first step is to understand what a tax deduction is. It represents a refund of part of the money spent on a particular property (or service). It happens of different types. For example, social and property deductions are distinguished.
The operation itself represents the return of a certain amount of money from expenses incurred in a particular case. The property tax deduction does not apply. That is, getting a refund for taxes will not work. Such expenses are not considered as expenses per se.
When a deduction is due
To date, there are a number of cases where it is possible to carry out a refund of a portion of funds for a citizen’s property. Remembering it is not as difficult as it seems. After all, tax deductions on the property of individuals are due:
- When buying an apartment or real estate. The main thing is that the buyer should have all the documents confirming the payment of housing.
- During the construction of the house. In this situation, it is important that this is about housing.
- For any expenses for the repair or decoration of the apartment / house where the citizen will live. Not the most common scenario.
- If there is a mortgage. Then you can make a tax deduction for the acquisition of property. The operation is carried out in relation to mortgage interest.
There is nothing difficult or special about this. Accordingly, if a person buys an apartment, he has the right to return part of the money. Not always, but in most cases there is such an opportunity.
When money cannot be returned
And when you can not return money for a particular property? Every citizen should also know about this. The deduction procedure itself is not so fast and simple. Therefore, limitations are important.
A tax deduction will not be received if:
- A property deduction in the maximum amount established has already been received. According to the established rules, citizens can use the refund only once. But there are exceptions. In practice, they are rare.
- The purchase and sale transaction was carried out with the participation of a close relative. That is, if a person buys property from relatives.
- No formal employment. In Russia, lack of work imposes a tax deduction on property.
- The employer participated in the acquisition of real estate. For example, when a citizen receives part of the money to pay for an apartment from the boss.
- During the transaction, government subsidies or maternity capital were used.
Accordingly, almost every taxpayer can claim a tax deduction for an apartment or house. This is a common occurrence. It is only necessary to remember some limitations.
Maximum deductions
Which ones? The thing is that you can get a tax deduction on property only once. In Russia there is a maximum amount of refund to a citizen. If at one or another deduction it turns out to be less, the missing amount can be returned through other expenses on property in the future. But as soon as the limit is exhausted, the operation will have to be forgotten forever.
Tax deductions on the property of individuals are limited to the value of the property at 2,000,000 rubles. You can return 13% of the cost of spending, but not more than 260,000 rubles. If the property is worth more than 2 million, for example 4, the return will still be 260 thousand.
Several other restrictions apply to mortgage lending. In this situation, the maximum amount from which 13% can be taken is 3,000,000 rubles. It turns out that no more than 390,000 rubles will be returned to the recipient.
Accordingly, it is precisely such restrictions that apply in Russia today. The tax deduction for property in 2016 is drawn up in the same way as before. But what is required for this? Where to go to implement ideas?
Where to go
In fact, everything is not as difficult as it seems. Direct collection of documents takes a lot of time, but finding a place where you can submit an application of the established form for a refund of property of an individual is much easier. No essential knowledge is required from a person.
The tax deduction for property can be made:
- at the employer (extremely rare case);
- in the tax authorities of a particular locality;
- through the MFC.
Multifunctional centers are becoming increasingly popular. And through the employer, citizens rarely act. In practice, the appeal is directly to the district tax authority.
How much to serve
Some people wonder how long a citizen has to make a tax deduction on property. 2016 is the period when serious changes took place in Russia regarding legislation. But at the same time, the changes did not affect issues related to the return of funds spent on property. So, similar rules apply, as in previous years.
That is, a citizen can submit a standard application for a deduction within 3 years from the date of conclusion of the purchase and sale transaction. After the specified period of time, you will not be able to issue a refund.
If you plan to repair or restore, then you can include the appropriate costs in the value of the property (it is important to have checks and receipts). Therefore, it is not necessary to rush to contact the tax service. But to delay the process is not worth it. From the moment of conclusion of the transaction, it is advisable to collect a package of documents that will be required to translate the idea into reality.
Documents upon purchase
Tax deductions for the property of individuals are made out only after the submission of a certain list of documents to the appropriate authority. A person may be refused if there are no papers. Therefore, it is recommended that you approach the collection of the package with special attention. It is also worth noting that it is better to attach copies to all documents. Their absence also sometimes entails the refusal of tax services to return part of the money spent on the acquisition of real estate.
If a citizen buys a house (without a mortgage), then a tax deduction on property will require the buyer:
- tax return in the form of 3-personal income tax;
- certificate 2-NDFL (original, taken from the employer, the SP is drawn up independently);
- identity card (passport);
- application of a standard form for a refund;
- an agreement indicating the conclusion of a transaction (sale);
- certificates of ownership of real estate (with a copy certified by a notary);
- acts of transfer and acceptance of property;
- payment documents (checks, receipts, statements) in the name of the applicant;
- account details where to transfer funds after consideration of the application.
Nothing difficult or special. In fact, getting back part of the money spent on property is not too difficult. The application is considered approximately 1.5-2 months. And about 1.5 months is spent on transferring money at the specified details. But this case applies only to independent purchase of housing, without any features. The list of documents is subject to change. How exactly? It all depends on the situation.
Joint ownership
For example, more and more often there are cases when spouses acquire housing in joint ownership. In this situation, the tax deduction for property is still imposed, no one cancels it. But the list of documents is changing a bit. To the previously listed list of securities you will have to attach:
- Marriage certificate;
- a statement establishing the determination of shares in a particular property;
- birth certificates of all minor children (if they have their own shares);
- passports of minors (from 14 years old).
If we are talking about a refund taking into account finishing work, you will also need to bring checks and receipts for payment of certain expenses, a contract for repair work (if any), the payer's TIN. The last document is best presented always.
Mortgage
But what if we are talking about a mortgage? A similar scenario is quite common in Russia today. The tax deduction for immovable property acquired under a mortgage agreement will require the applicant additionally (in addition to the previously mentioned securities):
- mortgage agreement;
- certificate of interest withholding;
- certificate of payment% mortgage.
Inquiries and extracts are provided in originals and copies. But checks and receipts must be brought only original. In fact, collecting a package of documents is not as difficult as it seems if you start the process in advance.
The procedure for applying to the MFC or tax service
Now a little about what is the procedure for applying to one or another organization in order to receive a tax property deduction for the acquisition of real estate. If a person decides to independently apply to the tax authority or the MFC, he must follow the instructions:
- Collect a specific list of documents. It will depend on the situation.
- Make copies of papers. Certificates of ownership must be certified by a notary. Otherwise, the document will be deemed invalid.
- Fill in the application form. Served in a single copy, in the original. Most often completed in the MFC or in the tax directly.
- Apply with a package of documents to the appropriate organization.
- Wait for a response from the tax on the transfer of funds for the specified details. If the person is refused, the reason for rejecting the request will be reported in the letter. You can bring the missing paper and correct the situation. The response from the tax service comes within a month from the date of submission of the application of the established form.
- Wait until the money is transferred to the account of the citizen.
That's all. This is how the tax deduction for property from citizens is obtained when they independently apply to the MFC or the tax one. But what if the person decided to use the refund directly through the employer? What is important for everyone to know about this process?
Through employer
In fact, such a step greatly facilitates the paperwork that each citizen faces before receiving part of the money spent on property. What is required of a citizen in this situation? A tax deduction on property tax will be facilitated since:
- no need to take a statement of income;
- no declaration in the form of 3-personal income tax is required;
- The application is written in a simplified form.
What should a person do next? Depending on the situation, a citizen collects a certain package of documents (a complete list was presented earlier). Next, the application with the papers is submitted to the tax. As soon as a response from the relevant service is received, you can contact the accounting department with the employer with a statement on the deduction, as well as with a tax notice approving the process.
What gives a similar method? From the moment of submitting the application of the established form, the citizen will not be taxed with income tax. In other words, the employer will cease to charge a citizen 13% of the salary. The process continues either until the deduction in the established amounts is received, or until the end of the calendar year. It all depends on what comes first.
As already mentioned, a similar scenario is not used very often. Citizens prefer to receive a tax deduction on real estate from the tax authorities, rather than from the employer. This is the most common scenario.
Upon sale
And you can make a tax deduction for the sale of property. This alignment is relevant when it comes to property owned less than 3 years. You can return a maximum of 250,000 rubles. It is on such an amount that the tax amount paid per transaction with is reduced to the maximum:
- Auto
- non-residential real estate;
- garages;
- other items.
If we are talking about apartments, houses, cottages and rooms, then the maximum deduction is 1 million rubles. To receive a refund, you must:
- Contact the tax authority with a statement of the established form.
- Collect and bring documents: identity card, form 3-NDFL, transaction documents.
- Wait for approval of deduction.
This is all that every citizen should know. In fact, a tax deduction on property is a right that remains with a person. He can use it at any time. But without a personal appeal, no one provides a tax deduction. Tax on property of individuals is not so difficult to return.