Taxation always significantly affects our finances. The fact is that any of our transactions is subjected to it, during which we make a profit. Taxes are also paid if we buy or sell real estate or property. However, there are several loopholes here that can reduce taxes. One of them is a property tax deduction. What is it and how to get it?
All owners, including future owners, should remember this important information: each person can receive a property tax deduction only 1 time in a life. That is, as soon as you apply for this operation, you will be returned a certain amount that you paid as a tax on the sale of the apartment, your name appeared in the deduction database. The second time you have no right to submit such a petition. The next important question: who is entitled to a property deduction when buying an apartment? These are all people who live in the country regularly and regularly pay taxes. However, there are a couple of nuances: an apartment or a house should be bought by him from his own funds or on a mortgage. If the apartment was purchased for them by relatives, the employer and other individuals, property tax deduction is not made. Only those people who have made transactions since 2001 can get a deduction. It was at this time that the law on this tax bonus came into force. However, the property tax deduction has an expiration date: the amount paid on property taxes can be returned until 3 years have passed since the purchase and sale transaction. If the deadline has expired, the owner automatically loses the right to this benefit on this transaction. However, he has a chance to take advantage of this bonus if he once again makes a property transaction.
There are other nuances: parents are paid a property deduction for children. However, this only happens if the child is not an adult. In this case, the refund amount will be calculated from the entire tax paid, and not from any part of it. If the child has already reached the age of majority and is the same owner of the apartment as you, he can receive a property tax deduction for himself. By the way, the repayable amount that he will receive will be many times higher than yours. However, from now on, he loses the right to this benefit. We remind you that each citizen of the country can receive a property tax deduction only 1 time in his life. Therefore, try to use this chance wisely and to your advantage.
Where to submit the documents, and what package is necessary for the tax service to pay you a deduction? You must refer the application to the department of the tax office in which you formalized your purchase and sale transaction and paid the full amount of tax. Together with a statement written strictly according to the model, you must provide the following package of documents: first of all, this is a contract that confirms the fact of a transaction to acquire property. The second important document is paper, which is evidence that you are the owner of an apartment or house. If you participated in shared construction, the certificate of ownership will be the act of acceptance and transfer of the construction object.
Next, you need to bring a paper that confirms that you have transferred the nth amount of money to the seller. This can be a receipt, receipt, check, etc. If the property was purchased by you on credit, then you must bring to the tax authority a certificate from the bank about what interest was paid. As well as the very copy of the loan agreement.
It is also necessary to provide papers from all places of work stating that you paid taxes at a 13 percent rate. This is especially true of the period when you purchased an apartment and require a property tax deduction. By the way, the property for which these privileges are based is only residential premises. The purchase of land in this case is not taken into account.