In Russia, citizens have many different forms of state support. Here you can count not only on benefits and payments, but also on the so-called deductions. They are of interest to many residents of the country. Today we have to find out what a property deduction is. One will help to save on the acquisition of real estate. But how? And what is required to receive a deduction for property? Having understood all these issues, everyone will be able to achieve the desired result as soon as possible.
Definition
What is a property deduction? So it is customary to call the return of part of the money spent on the acquisition of real estate on account of income taxes paid in a given tax period.
The current law states that a citizen has the right to property deduction not only when buying, but also when selling housing or land. In this case, it will be possible to partially or completely not pay income tax on the amount received for the property sold. This is due to a decrease in the tax base on personal income tax by one or another amount.
Most often, property deduction means the first interpretation of the corresponding concept. The population is mainly faced not with paying taxes on the sale of real estate, but with the return of money for the purchase of it.
What is provided
What is a property deduction? This is a reimbursement of the costs incurred in acquiring real estate. But not everyone can use this right, and not always.
Deductions for property are provided for the following facilities:
- apartment;
- room;
- residential block in a townhouse;
- house;
- land for building a house;
- land purchased under a residential property;
- shares in the listed property.
For any objects, it will not work to reduce the personal income tax base or return part of the money spent. This is not provided for by the legislation of the Russian Federation.
Types of property deductions
Buying a home can be done in different ways. The maximum reimbursable funds will depend on this. Someone immediately pays the entire amount under the contract, while someone prefers to arrange a mortgage. In both cases, the buyer is theoretically entitled to a tax deduction.
Property return can be divided into several types:
In the first case, part of the funds spent directly on the purchase of housing will be returned. In the second, a citizen will be able to reimburse the interest paid on the loan.
Important: when registering a mortgage, it is allowed to draw up both the main and mortgage property deductions.
How much can I return
What is a property deduction? The answer to this question should no longer cause difficulties for citizens. And how much money will be able to return in the end? What do you need to know about this?
Article 220 of the Tax Code of the Russian Federation states that a citizen can count on a deduction from two million rubles when buying a home and making the main property deduction. The return rate is 13%. Accordingly, a maximum of 260,000 rubles can be returned.
The situation with the mortgage is somewhat different. The deduction is calculated from the amount equal to three million. This means that the state can return to the applicant a maximum of 390,000 rubles.
If we talk about the sale of housing, then a million is allowed to reduce the base on personal income tax. This is the maximum proposed by the state.
Important: you can’t demand more money than a citizen transferred income taxes for a given tax period.
When the right or time for registration arises
According to Article 220 of the Tax Code of the Russian Federation, a citizen has the right to a tax property deduction in the year in which he made the corresponding transaction. But you can implement it for a limited period of time.
The statute of limitations for property deductions is 3 years. This means that after three years from the date of sale or purchase of real estate, a person will not be able to contact the authorized bodies for personal income tax refund.
In Russia, you can apply for a tax deduction for several tax periods at once (1 period = 1 year). Namely - immediately for all three years. Very convenient, especially when it comes to paying mortgages.
Basic conditions
What is property deduction is now clear. But how to get it? And who has the right to do so by law?
There are conditions that must be met when requesting a tax deduction. At the moment, they look like this:
- The applicant must be a resident of the country.
- Purchased housing is mandatory in Russia.
- A citizen must have an official income taxed at 13 percent.
At first glance, it seems that pensioners and the unemployed cannot realize the law they are studying, even if they purchased real estate. In fact this is not true.
Important: parents, guardians and adoptive parents can apply for a tax deduction for housing for a child who is under 18 years old.
Opportunity for the elderly
A lot of questions are caused by property deduction for pensioners in Russia. If an elderly citizen works, he uses the studied law on a common basis. Otherwise, problems are not excluded.
The right to property deduction for pensioners is granted with the possibility of transfer of personal income tax. This means that an elderly unemployed citizen can apply for a deduction taking into account income taxes paid over the past three years.
What includes
Everyone should understand that includes property deduction. More precisely, what expenses will be taken into account when registering thereof.
If an apartment is purchased, a person may include in the expenses:
- the amount prescribed in the DCT;
- purchase of goods for repair;
- funds contributed for repair work.
It so happens that people do not acquire apartments and rooms, but houses or land plots for individual housing construction. In this case, the following amounts will be considered as expenses:
- for developing a house project;
- for building materials;
- for finishing materials;
- paid for the purchase of the apartment building itself;
- given for construction and finishing work;
- for conducting communications to housing.
All listed expenses are documented. Otherwise, they cannot be taken into account. In both cases, the mortgage will take into account the interest paid on the loan for housing.
Important: when making a deduction for the sale of real estate, these costs should also be taken into account.
How many times to ask
Property deduction for an apartment or other property can be made once. But it so happens that the buyer’s real spending on housing is less than the specified limits. In this situation, it is allowed to draw up deductions for property as much as is required before the limit sums allocated by the state are fully spent. But in our case, there is one serious limitation - the transfer of the balance of the deduction is allowed only to those who bought a home after 2014. If the property was purchased earlier, you will not be able to take advantage of the mentioned benefit.
The same goes for reducing the personal income tax base for housing sales. A citizen may deduct from the profit received the amount of expenses incurred previously by him, but not more than 1 000 000 rubles. If it is less, the transfer of the rest of the deduction to the future is allowed.
If the applicant acquires several objects, he can draw up a deduction for one of them, and transfer the balance, if any, to other property. Very comfortably!
Counting rules for purchase
How to calculate the property deduction? "Interesting mathematics" must be taken very carefully. And then everything will work out.
To find out how much you can return for the purchase of a home, you need:
- Calculate all the above costs incurred by the buyer / seller.
- Compare the amount received with state limits. If the amount is more, you will have to take 2 or 3 million rubles for the base with a regular purchase and mortgage, respectively.
- Calculate all paid income taxes for the selected tax period.
- Multiply the amount spent by 13 percent.
- Compare the figure obtained in the previous step with the amount of income taxes paid.
All that remains now is to conclude how much can be returned. If the deduction is more than the personal income tax paid, the entire income tax for a given period is refunded, and if less, the full amount of the deduction received.
Important: in order not to be mistaken with the calculations, it is worth using tax calculators. They help to calculate free of charge and quickly according to the data specified by the user what the size of the property tax deduction will be in this or that case.
About authorized bodies
You can apply for a deduction only in certain places. At the moment, you can apply with the appropriate application through:
- Multifunctional Center;
- local tax office.
If necessary, a statement can be sent to the Federal Tax Service by mail, but this step significantly slows down the process.
You can apply for a deduction at the place of employment. That is, request it at work. This is not a very popular technique, but everyone should remember about it. During its implementation, a person will not be paid personal income tax on the amount of deduction.
Important: if a citizen decided to contact the Federal Tax Service directly, it is necessary to take into account the place of residence of the applicant.
Spouses and deductions
Often, real estate is bought in a marriage. What should husbands and wives know before making a deduction?
If a house is purchased in a marriage and with common money, the second spouse also owns the respective residential property, and the husband and wife have equal deduction rights. However, there is one caveat.
In order to exclude problems during registration thereof, it is necessary to submit an application for the distribution of property deduction between spouses. The husband and wife themselves should think about how to demand it. It may be more profitable to apply for a deduction for one of the spouses or in equal shares.
If the housing is bought only with the money of the husband or wife, the second spouse is not a co-owner of the property, you should not count on equal rights regarding the deduction. They are simply not provided for in the laws of the country. An application for the distribution of property deduction between spouses in this situation is not submitted. Instead, it is enough to issue the usual application for "compensation" for the purchase of a residential property.
Quick Start Guide
Requesting a housing deduction is not as difficult as it might seem, but this process requires preliminary preparation. What is necessary to achieve the goal?
In our case, it is recommended to act as follows:
- Make a deal to buy or sell a home.
- Fill out a 3-personal income tax return. A property deduction without this document cannot be issued. Usually a tax return for a tax period is filled out, you can immediately enter data for three years into it.
- To carry out the formation of a package of documents necessary for further service of a potential applicant.
- Contact the authorized body at the place of residence with a statement and tax return.
- Wait for an answer from the Federal Tax Service.
Further, everything will depend on what decision is made by the tax authorities. If you agreed to provide the opportunity, it will be enough for the citizen to wait for the fact of transferring money to the account indicated in advance. A property deduction for interest on mortgages or cash-out payments is not issued in cash.
Otherwise, it is necessary to study the cause of the failure. If it can be fixed, it is recommended to do this within one month - then you will not have to re-apply to the authorized service for the appropriate service.
Rules for filling out a declaration
Everyone can file a tax return for deduction for an apartment or house. You can do this manually or using special programs. It is best to use the second trick. It will avoid most of the problems associated with filling out the form. The program "Taxpayer YL" was recognized as the best.
The 3-personal income tax return on property deduction for 3 years is executed in three separate documents.
The form of the document must correspond to the forms used in the year in which the person applies for "compensation". As a rule, it changes from year to year. This must be carefully monitored.
In the prepared certificate, you must specify:
- all expenses incurred;
- taxable income;
- data from pre-prepared documents.
As a rule, if a person uses the program to generate tax returns, he simply needs to fill in the fields on the "D1" form, then select the type of deduction and fill out the form again. The finished declaration will be generated automatically.
Important: if you have problems with the preparation of the 3-NDFL form, you can contact the intermediaries for help. Private companies often help with deductions, but at an additional cost.
Main papers
Want to get a property deduction? What documents will be required to implement the task?
The list of references to achieve the desired goal is different each time. First, consider the main documents. Confirmation of the right to a property deduction is carried out using title documents for housing, as well as receipts indicating the costs incurred.
A citizen will need:
- passport;
- application form;
- tax return;
- income statements;
- contract of sale or mortgage;
- receipts and checks indicating the expenses of the applicant;
- USRN statement.
These are required certificates, which cannot be dispensed with. If a mortgage is issued, you will additionally need to prepare a loan repayment schedule.
For family
How to fill out a property deduction declaration is now clear. And what exactly will be required for registration thereof?
In addition to the references indicated earlier, family people must attach:
- Marriage certificate;
- prenuptial agreement;
- birth or adoption certificates of children;
- any certificates indicating that the purchase was made from the personal money of the husband or wife.
Typically, all of these documents are provided with copies. When sending them by mail, you will have to notarize photocopies. Originals do not need to be sent. They will be required only when personally contacting the authorized body.
How much to wait
How long does the request for a property deduction and its consideration take? There is no definite answer, but this is far from the fastest process. The applicant needs to be patient.
On average, tax authorities are responsible for submitted deduction applications for up to two months. It is also worth considering the time to transfer money to the applicant. On average, this operation takes another two months.
Reasons for denial of deduction
The provision of the studied deduction is sometimes refused. Such a decision must have a written justification.
Most often, the Federal Tax Service refuses deductions if:
- mistakes were made when filling out the declaration;
- a person does not have a right to deduction for one reason or another;
- the certificates provided have expired or been recognized as fakes;
- the citizen brought an incomplete package of certificates required to request a refund;
- the deduction period has expired.
A citizen can always specify the reason for refusal of deduction from the tax authority. If "mistakes" can be eliminated, this must be done as soon as possible. Otherwise, refund money for the purchase or sale of housing does not work.
If a citizen doubts his abilities, he can always ask for help in processing deductions to intermediaries. You can also consult with tax officials regarding your case. They will definitely tell you how to act at one or another stage of processing the deduction.