Many citizens are interested in taxes when selling a house in Russia. Do they really exist? And if so, in what sizes? Is there any way to avoid taxation? To understand all this and not only for us to come. As practice shows, there should not be any real difficulties with taxation. It is enough to pay attention to several key points of the legislation of the Russian Federation.
Sales Taxes - To Be Or Not To Be
Are there any taxes in Russia when selling a house? Understanding this issue is not so difficult.
The thing is that the transaction is called the sale of "real estate". During it, the owner makes a profit. These funds should be reflected in tax returns.
According to current laws, upon receipt of income, citizens must report them to the tax authorities. Moreover, most profits are taxed. The difference is the amount of upcoming payments.
Do I have to pay home sales tax? Based on the foregoing, it follows that yes. But in practice, everything is not as simple as it seems. There are exceptions in which it is not necessary to transfer money to the Federal Tax Service.
Important: the use of benefits does not exempt from the declaration of income.
Payment Amount
We will talk about exceptional cases later. To begin with, we will deal with taxation when conducting transactions with property. In our case, we are talking about selling. What should everyone know about this?
What is the tax on home sales? In this case, citizens are required to transfer personal income tax to the tax authorities. It is 13% of the amount of cash received under the contract.
Base definition
It is worth paying attention to the fact that the current Russian legislation provides for a lot of different nuances and features of calculating personal income tax on the sale of real estate.
For example, problems may arise in determining the tax base for further calculations. In connection with the new rules, taxes on the sale of a house will now be paid not only taking into account the amount of the purchase agreement, but also taking into account the cadastral value of the “real estate”.
What does it mean? If the amount under the contract for the sale of property is less than 70% of the cadastral price of the object, the citizen will have to pay 0.7% of the value of the subject of the cadastral agreement.
Benefit and taxes
What tax on home sales should the Federal Tax Service transfer in one case or another? It is important to pay attention to the fact that not always taxation takes place. Sometimes citizens can free themselves from additional expenses.
In Russia, money transfer for a transaction with a real estate transaction is necessary if the profit from the transaction is more than 1 000 000 rubles. It will have to be taken into account that in practice the actual profit of the seller is taken into account. What does it mean?
It is necessary to take into account the difference between the initial value of the property and the amount of sale by the new owner. If the received figure is below a million rubles, there will be no taxation. Otherwise, you will have to pay 13% of income.
For foreigners
But that is not all. The tax on the sale of a house with a land plot may be higher. We are talking about situations in which the seller is a foreign citizen. That is, a non-resident of the Russian Federation.
The thing is that such transactions involve higher taxes. Foreigners transfer to the Federal Tax Service 30% of the profit they receive in the territory of the Russian Federation. Fortunately, the bulk of Russia's population does not face similar situations.
Important: non-residents are foreigners who have lived in the Russian Federation for less than 183 days in the last year.
House and land - what will happen to taxes
What taxes does the sale of land and home provide? In this case, one transaction is usually conducted. But it does not exempt from taxation.
The burden of expenses for the transaction falls on the seller of objects. Ideally, citizens are advised to indicate separately in the contract the amount for land and separately for the house.
If this is not done, you will have to face huge paperwork and some problems. This is due to the fact that the house and land are independent real estate. And the seller will have to report to the state for the transaction with each unit of "real estate".
That is why it is better to conclude 2 agreements at once. One - for the sale of land, the other - for the house. Taxes will still be calculated for each property separately.
Important: for the buyer there is no difference in transactions. That the purchase of a house, that the acquisition of land with a house will be carried out equally. For each subject of the contract, the client will be able to apply to the Federal Tax Service, minus the property character.
About reporting
The tax on the sale of a house with a land plot will be calculated separately for each property. For the former owner, this situation can leave a lot of inconvenience, but they are all fixable.
As we have said, citizens need to account for their profits. If the owner has sold his property, he will have to file a tax return with the Federal Tax Service before April 30 of the year following the transaction period.
In other words, if an item is sold in 2018, reporting is submitted before 04/30/2019, if in 2017, then paperwork with the form 3-NDFL is due in 2018. These rules are familiar to almost all taxpayers.
Tax Terms
To what date do you have to legally list taxes when selling a house? The thing is that reporting and money transfer to the Federal Tax Service have different terms. And this situation sometimes leads to a misunderstanding of what is happening on the part of the population.
We have to report on the income received, it is necessary until April 30 of the next transaction period following the year of the transaction. And before what date will you have to transfer money in the form of taxes?
Transactions will have to be completed no later than July 15. Here, we also mean the year following the year of conclusion of the agreement on the sale of real estate of any type.
Old houses
Now let's talk about pleasant exceptions to the rules. As we have already said, far from always citizens should transfer personal income tax in the amount established by the state. There are exceptions to the rule.
Let's start with the owners of property acquired a long time ago. If the house and the land were purchased before 2016, for exemption from taxes you will have to own the objects for at least 3 years. After that, any profit received from the transaction is not subject to personal income tax.
Accordingly, if a citizen acquired property before 2016 and sold it before the expiration of the 3-year term of ownership of the property, it will be necessary to fully transfer taxes to the state.
Important: at the moment, this rule has almost no effect. Recently, new tax exemption principles for the sale of real estate have come into effect.
New property
And what to do with the objects acquired after January 1, 2016? Such property is subject to other tax exemption rules. What is it about?
In order not to pay tax on the sale of a house (with or without a plot - this is not so important), you must have ownership of the item under the “purchase” agreement for at least 5 years.
This means that if you own the property you are selling for less than five years, you will have to fully transfer personal income tax to tax authorities. Otherwise, it remains only to file a tax return indicating the income received.
Important: if you are selling a house with land, for benefits you will have to consider the ownership of each property separately. It may turn out that you will not need to pay personal income tax for land, and you will need to pay for the house in full. It is a completely normal situation that every modern citizen should be ready for.
Sale of inheritance
Some people prefer to dispose of inherited property. For example, for its uselessness. What to prepare for in this case?
Inheritance taxes on the sale of a house will be the same as with a regular sale transaction. The same rules apply to such objects as in general situations.
When inheriting citizens, by law or by will, close relatives of the deceased do not pay taxes. But when selling the corresponding property, personal income tax takes place in full.
Share sale
Did the pensioner sell the house? Taxes will have to be paid in full. Retirement age in this case is not a basis for exemption from personal income tax.
In real life, real estate has several owners. Each owner can sell his share of the property. What happens to taxes with all this?
Personal income tax will be calculated taking into account the seller’s share in the property. If the owner sells 1/4 of the property, he will have to pay 13% of the amount indicated in the contract. In this case, the amount should not be lower than 70% of the value of the same share in the inventory.
If the amount of money received is less than the amount for the inventory of the sold part of the object, you will have to face a coefficient of 0.7%. The cadastral value of the share will be multiplied by this indicator, during which the tax for the transaction will be obtained.
Several owners
We found out what tax on the sale of a house should be transferred to the Federal Tax Service in one case or another. And we also got acquainted with the main tax benefits. Filling them is not so difficult.
As we have already said, several owners are increasingly being discovered in real estate. With the procedure for calculating the tax when selling a share, everything is clear too. And what if the property is sold entirely?
Suppose all property owners agree to resell their property. What will happen to taxes?
Each owner will transfer to the Federal Tax Service a separate tax, calculated in proportion to the part of the property allocated in the object. This is not very convenient, but there are no other options.
Accordingly, the smaller the share of the citizen, the less will have to be transferred to the Federal Tax Service as a tax for the contract of sale.
Important: for this transaction, each participant in the transaction will report separately to the tax authorities.
Procedure for concluding transactions
The tax on the sale of a new home will have to be paid when the ownership of it is less than 5 years (or 3 if they arose before 01/01/2016). Consider the entire procedure in more detail.
Instructions for making tax for the sale of "real estate" is as follows:
- Make a sale transaction. It is best done in the presence of a notary public or at the MFC.
- Collect a specific package of documents. We will meet him later.
- Draw up tax reports in the form of 3-personal income tax. This can be done independently or contact specialized companies that for a fee will help sellers.
- Within the established time limits, contact the Federal Tax Service at the place of registration or temporary stay with reports and prepared in advance certificates.
- Transfer money in the established amounts to the local tax authority before the previously indicated time. It is advisable to keep a check or receipt. They may come in handy if the Federal Tax Service fails or questions arise regarding the transfer of personal income tax for property.
That's all. If you prepare in advance for the processes, you can minimize all the hassle. Conscientious citizens, as a rule, have no problems with tax and reports.
Documents for contacting the Federal Tax Service
We found out how to pay the tax on the sale of a house with a plot. And what is useful from the documents for the implementation of the task? Without certain references, tax reporting simply will not be accepted.
To date, the seller of "real estate" must bring with him:
- form 3-NDFL;
- copy and original agreement on the sale of property;
- extract from the USRN;
- a receipt of receipt of money or any other document confirming the transfer of funds for the transaction;
- applicant's identity card;
- certificates confirming the initial costs of the sold object;
- title deeds for the property (testament, inheritance statements, deed of gift, and so on).
That's all. As practice shows, bona fide property owners do not have any problems with the sale of their property. To declare income is also not difficult.
How to calculate taxes
Some are interested in how to calculate the approximate amount of taxes from the sale of a house or other real estate. It is quite difficult to do it yourself. Especially if the object has several owners.
Ideally, you need to contact the Federal Tax Service and get relevant information there. The approximate (and sometimes accurate) amounts of personal income tax help calculate special tax calculators.
Work with these services is carried out as follows:
- Go to the website of the tax calculator.
- Choose your upcoming payment options.
- Click on the "Calculate" button.
The amount of the upcoming payment will appear on the screen. Fast, easy, convenient and absolutely free!