A tax deduction is a refund of a portion of previously paid income tax. The largest and most significant is the return made upon the purchase of real estate. It is called property, and is assigned both for the purchase of an apartment, and for the purchase of houses, land or rooms. In addition, it is possible to issue a refund for the paid interest on the mortgage. Those who purchase housing without repair can rely on a tax deduction for apartment repair. It is provided if the cost of the purchased object is less than 2 million rubles.
The concept of property deduction
Property deduction is the return of personal income tax, and its main features include:
- Appointed upon the purchase and repair of real estate;
- maximum 13% is returned from 2 million rubles; therefore, each citizen can receive 260 thousand rubles from the state;
- if housing costs more than 2 million rubles, then you won’t get a tax deduction for apartment repair, since the benefit will be used in full;
- You can use it once in a lifetime;
- balances carried forward to future purchases;
- the amount of payment per year is limited by the amount of personal income tax transferred to the budget for the last year of work, so usually you have to contact the tax office for several years to get the full amount;
- You can apply for a deduction at the Federal Tax Service or at the place of official work of the applicant;
- For repair work, personal income tax is returned only if there is evidence of expenditure on certain materials and work.
The procedure for obtaining this benefit is considered simple and quick, so many citizens speak positively about this measure of state support.
Who can get it?
Before applying for a tax deduction for apartment repair, you should make sure that a citizen has the right to receive such an exemption. To do this, the following conditions must be met:
- there is evidence of the purchase of residential real estate (home, apartment or even a separate room);
- a citizen is officially employed, so the employer pays personal income tax on a monthly basis;
- it is not allowed that the deduction has been completely exhausted earlier;
- housing should not be bought at the expense of maternity capital, other state funds or with the support of the employer.
Subject to these conditions, you can apply for a benefit.
Ways of registration
The tax deduction for apartment repair, as well as a refund for the purchase of housing, can be made at the place of work of the citizen or when contacting the Federal Tax Service.
In the first case, it is enough to prepare the necessary documents only once, after which the citizen will receive a full salary without collecting personal income tax until the moment when the return is completely spent.
What expenses are deductible for?
When calculating the maximum amount of benefits, it is taken into account:
- the amount paid to the seller for the purchase of real estate;
- repair costs, which may be capital or cosmetic;
- costs associated with the purchase of building materials;
- expenses for the salaries of specialists hired to repair;
- purchase of a land plot on which construction of a residential building is planned;
- costs associated with the payment of interest on a mortgage loan.
Not only people who bought ready-made real estate, but also who independently built a private residential building, can count on a return.
All the above costs are added up, after which the deduction is determined, equal to 13% of the amount received. If it is more than 2 million rubles, then the maximum benefit is assigned, so the applicant can only receive 260 thousand rubles.
Before returning the tax deduction for apartment renovation, it is important to determine what documents are required for this, what kind of work was actually carried out, and whether the apartment was bought in the primary or secondary market.
Buying a home in a new building with a rough finish
It is these apartments that are most often offered by developers. Such living spaces are represented by ordinary concrete boxes in which communications are laid and windows are installed. All other work has to be done by future property owners.
To repair an apartment, citizens have to spend a really large amount of money. To make a tax deduction for apartment renovation in a new building, the following rules are taken into account:
- the contract of sale or DDU should indicate that the object is being sold without cosmetic decoration;
- the Federal Tax Service transfers an act confirming the transfer of the object to the buyer;
- property owners must correctly compile a special list of costs that were incurred in the process of purchasing building materials or paying for the repair team;
- each item on the above list must be confirmed by official payment documents;
- if the property is acquired by several persons (as a result of which each owner has a share in the real estate), then each of the owners can expect a deduction depending on the existing part of the apartment;
- if the buyers are spouses, then they can write an application on their own, on the basis of which only one of them can draw up a deduction.
The easiest way to get a refund for repairs is when buying a home in a new building. Before you receive a tax deduction for apartment renovation, you need to prepare a lot of documents that serve as confirmation of the expenses incurred.
Partial purchase of an apartment in a new building
In this case, certain difficulties may arise in obtaining benefits. This is due to the fact that the DDU or the contract for the sale of the object indicates that the property is being sold with decoration.
It is allowed to issue a deduction only if all the finishing work performed by the developer is listed in the drawn up contract, but it is indicated that it is required to complete the work by redecorating it. In this case, the costs of purchasing materials and paying for the services of employees can be compensated.
If the buyer is not satisfied with the existing decoration in the real estate, then even if he completely changes it, he will not be able to compensate for the costs of repairing the apartment. The tax deduction is assigned only to compelled expenses.
When drawing up the act of receiving an apartment, it is advisable to ask that this document contains information about the need for additional work.
Buying an object in the secondary market
Even buyers of real estate in the secondary market are thinking about the possibility of obtaining benefits. Usually, renovated apartments are sold in this market, so buyers may not spend money on changing the situation.
Even if buyers themselves want to change the appearance of the apartment, they will not be able to draw up a tax deduction for apartment repair.
Resellers can be an apartment in a new building, which is sold by a citizen after receiving it from the developer, in this case there may be no decoration. In order to receive a privilege under such conditions, it is necessary to indicate in the contract that the object is being sold without finishing. With this arrangement of the agreement, you can expect to receive a refund.
What kind of work tax is refunded?
Before you make a tax deduction for apartment renovation, you should find out what kind of work and materials tax is refunded. These include:
- purchase of materials for construction or decoration, and all these acquisitions must be confirmed by official documents;
- payment for construction work, which includes cost estimates, engineering communications, building an extension, the use of plaster for walls or ceilings, floor leveling, as well as other work related to the finishing or finishing repairs of residential premises.
When transferring various securities to the Federal Tax Service, it is important to make sure that they list all materials purchased and work performed on the decoration of the premises.
What documents are required?
A tax deduction for apartment repair is provided only when the necessary documents are submitted to the Federal Tax Service. These include:
- correctly drawn up statement indicating the design of the refund for repair work in the purchased premises;
- a declaration in the form of 3-NDFL containing information on the previously received deduction for the purchase or construction of the facility;
- income statement for the year of work, which allows you to understand how much money in the form of personal income tax was transferred to the budget for the citizen by his employer;
- documents of title to the object, which include the contract of sale, DDU or other securities;
- a copy of the applicant’s passport;
- TIN of the citizen;
- payment documents confirming expenses for various construction materials or work for the decoration of the premises;
- extract from the USRN, confirming that the applicant is the owner of the apartment or some part of it;
- if the owners are spouses, then they can additionally draw up a statement on the basis of which they independently distribute the deduction among themselves.
The above documentation should be transferred to the FTS office annually, after which the required amount of funds equal to the personal income tax paid for the year of work will be transferred to the applicant’s account. The process is repeated until the benefit is fully exhausted.
Rules for filing a declaration
A tax deduction for materials for apartment repair can be submitted with a personal visit to the department of the Federal Tax Service, as well as using a proxy or by filling out a special form on the official website of the Federal Tax Service.
If a citizen has a correctly registered and confirmed personal account on the State Services portal, then this procedure can be performed through this resource. But for this you will have to scan the necessary documents in advance, and then upload them to the site.
If the documents contain errors, this may become the basis for refusing to transfer benefits. The same applies to the situation when the title documents do not contain information that the object is being sold without decoration.
Conclusion
The deduction can be made out not only for the purchase or construction of real estate, but also for repair work in residential premises. Homebuyers should find out in which cases a repair privilege is assigned, as well as what documents are needed for this. If you buy a property in the secondary market with the already finished, then a refund for repairs is not assigned.