The tax deduction allows employed citizens to return part of the funds after purchasing a home.
If you are going to buy your first apartment, you can count on receiving a tax deduction. It is paid at the rate of 13% on amounts up to 2 million rubles. If you take out a mortgage to buy an apartment, you can also get a refund for the interest paid to the bank (390 thousand from 3 million rubles)
In accordance with the provisions of Art. 220 of the Tax Code of the Russian Federation, which was in force until the beginning of 2014, a tax deduction in the case of the purchase or construction of housing could be obtained only once. After this, legislators decided to make changes to the Tax Code of the Russian Federation due to the fact that in most regions of Russia the cost of housing did not exceed 2 million rubles. As a result, not many citizens were able to receive the maximum deduction amount. It was necessary either to raise money for more expensive housing, or to agree to a smaller amount of property deduction.
Now a citizen who did not receive the entire stipulated amount the first time has the opportunity to do so next time.
For example, if you purchased an apartment in 2014 for 1 million 500 thousand rubles, then you could get a real deduction in the amount of 13% of this amount, i.e. only 195 thousand rubles. When purchasing a second apartment for 2 million 500 thousand rubles in 2017, you can apply for a deduction with another 500 thousand rubles. and receive 65 thousand rubles, since initially they could claim a refund of 260 thousand rubles.
Where to go to get a deduction?
The first option is to contact the inspection department of the Federal Tax Service at the location of the apartment. This can be done from the beginning of the year following the transaction.
To this end:
- a statement of the established form is written;
- the declaration form 3-NDFL is filled out;
- copies of documents on housing ownership are prepared and submitted.
The application, a sample of which can be taken directly from the Federal Tax Service, is reviewed by tax officials within 3 months after its receipt.
If your request is answered positively, the money will be transferred to the specified bank account. The amount will be equal to the tax deductions that the employer withheld from your salary for the year.
The second option is to submit an application to the head of the enterprise or organization. This can be done immediately after purchasing a home and receiving a special notification from the Federal Tax Service employees, issued in the name of the home owner.
In this case, there is no need to wait until the end of the tax year. You can receive a deduction immediately after applying. The application is considered by the employer within 30 days. After this, the accounting department will not withhold 13% personal income tax from the employee every month until he receives the entire amount due.
You can choose the method that is convenient for you to receive a tax deduction.
How many times can you get a deduction?
Deduction for the purchase of an apartment
Owners who purchased real estate before 2014 and received a tax deduction cannot re-submit documents for it. Even if the deduction was received from an amount of less than 2 million rubles. Their one-time right to deduction is considered used, because. it was tied to the property, not the person.
If the tax deduction was received from an amount of less than 2 million rubles. If you purchase an apartment after 2014, you can return the remaining funds when purchasing a second apartment.
Tax deduction on mortgage interest
Here, those who entered into a mortgage agreement before 2014 were luckier. They could apply for a tax deduction on all interest paid to the bank. Now you can do this only with 3 million rubles.
Thus, in any case, you can receive a deduction from interest paid on a mortgage once, but only those owners who are subject to changes in the Tax Code of the Russian Federation that were in force until 2014 can claim the maximum amount.
It should be remembered that such a deduction for overpayment on a mortgage loan is not issued for the entire amount at once, but as interest is paid to the bank. Therefore, it will be returned in installments over the entire repayment period of the loan taken.
If you received a deduction for the purchase of an apartment, but not for the mortgage interest
There are situations when a citizen submitted an application in a timely manner and received the main property deduction for an apartment purchased before 01/01/2014, but then he did not have time to take advantage of the deduction in connection with the mortgage loan received from the bank. As a result, he has a question about the possibility of receiving such payments after purchasing a new residential property. After 2014, the Federal Tax Service and other regulatory authorities could not immediately come to a common opinion.
As a result, this issue was resolved in favor of taxpayers. Now, if the homeowner receives the main deduction before 2014, when purchasing a new home later, he has the right to claim a deduction for credit interest, which the Ministry of Finance of the Russian Federation agrees with.
Conditions for receiving deductions
To exercise the right to receive a property deduction, a number of mandatory conditions must be met:
- become a homeowner after January 1, 2014;
- do not declare receipt of deductions for other objects until January 1, 2014;
- be a resident of the Russian Federation, pay income and other types of taxes and reside in Russia for at least 183 days during the year.
In addition to non-residents of the Russian Federation, the following are not entitled to claim such a deduction:
- contract military personnel during their service;
- orphans under 24 years of age;
- minor citizens. Their legal representatives can exercise these rights for them.
In order not to miss the statute of limitations and not be denied the return of money provided for by law, you must not delay:
- with construction work. To get a refund, you must provide the IFTS with an apartment acceptance certificate. If, for various reasons, construction has been delayed for more than 3 years, then it will no longer be possible to return the money;
- with the preparation of documents that confirm ownership of residential real estate. Participants in shared construction often experience this problem when the construction company delays the renovation of premises, puts the building into operation within the time period stipulated by the contract, or does not complete the work.
Note!
One of the most common problems that can lead to a refusal to provide a deduction by the tax authorities is the presence of unscrupulous developers.
They strive to earn big profits, for which they indicate inappropriate prices in documents, falsify documents, or deliberately delay the commissioning of the facility.
If tax officials delay checking documents, require additional certificates, oblige you to confirm the legality of transactions, or do not indicate the actual reasons for refusing to receive a tax deduction, then such actions are a violation of the law. They should be appealed to a higher-level Federal Tax Service or to a judicial authority.
Summary
If, after purchasing the first apartment, the full amount of the tax deduction provided by law was not received, then this must be done after purchasing the second home. At the same time, in order not to receive a refusal, you cannot delay applying to the Federal Tax Service. With the help of experienced lawyers of our company, you should collect all the documents, calculate the amount of deduction, write an application and wait for a positive result within the period provided by law.
Limits on most tax deductions (for education, for treatment, etc.) are established only within one calendar year: each calendar year the “limit” is reset, and the deduction can be received again. In contrast, the property deduction for the purchase of a home contains more serious restrictions: both the maximum deduction amount and the number of times it can be used during one’s lifetime are legally limited.
Until 2014, there were restrictions according to which tax deductions for housing purchase expenses and loan interest could be obtained only once in a lifetime and only for one housing property. Since 2014, the deduction was allowed to be received for several residential properties, but the new rules were allowed to be applied only to new transactions (concluded after the entry into force of the new law). In this regard, many questions arose: in what cases what deduction restrictions apply? If you used the deduction earlier, in what cases can you “receive” it when purchasing a new home? Is it possible to get a deduction for credit interest if you previously only used the deduction for the purchase of housing?
In this article we will try to answer all these questions.
Note: The key factor on which the property deduction restrictions depend is the date of purchase of the property for which you receive (or want to receive) the deduction.
“Date of purchase of housing” For the purposes of this article, the following should be considered:
- the date of registration of ownership of housing according to an extract from the Unified State Register of Real Estate when purchasing under a purchase and sale agreement;
- the date of the transfer deed when purchasing housing under an agreement of shared participation in construction.
Deduction limits for housing purchased before January 1, 2014
If you purchased housing before 2014 and received (or plan to receive) a property deduction for it, then the “old” rules apply to you, according to which you can receive a deduction strictly only one property at a time(paragraph 27, paragraph 2, clause 1, article 220 of the Tax Code of the Russian Federation, as amended, valid until 01/01/2014) and in an amount of no more than 2 million rubles. (260 thousand rubles to be returned). Moreover, even if you received a deduction less than the maximum amount, you will not be able to receive it additionally when purchasing another home.
Example: In 2008, Levashov I.I. bought an apartment for 500 thousand rubles. and received a tax deduction for it (returned 65 thousand rubles of taxes paid). When purchasing an apartment in 2016, Levashov I.I. will not be able to use the deduction again, since until 2014 the property deduction was provided only once for one housing property
Deduction for credit interest for housing purchased before January 1, 2014, had no restrictions on the amount(it was possible to return 13% of all mortgage interest paid), but you could only get it for the same property for which you received the main deduction(deduction for purchase expenses). This is due to the fact that until 2014, the main property deduction and the interest deduction were not separated and constituted a single type of deduction (Article 220 of the Tax Code of the Russian Federation, as amended, valid until 01/01/2014).
Example: In 2012, Ivanchenko A.A. I bought an apartment and received a tax deduction for it. In 2013, Ivanchenko bought another apartment with a mortgage and wanted to get a deduction on loan interest. The tax office legally denied him the deduction, since for housing purchased before January 1, 2014, the main deduction and interest deduction could only be received for a single housing property.
Limitations on the deduction for housing purchased after 2014
Since January 1, 2014, significant changes have been made to the Tax Code of the Russian Federation, according to which, if the tax deduction for the purchase of an apartment/house is not received in the maximum amount (i.e. from an amount less than 2 million rubles), then the remainder can be received when purchasing other housing properties (paragraph 2, paragraph 1, paragraph 3, article 220 of the Tax Code of the Russian Federation).
Example: In 2016, Ukladova T.I. I bought a room for 500 thousand rubles. and received a property deduction (returned 65 thousand rubles). In 2017, she bought an apartment for 3 million rubles. Ukladova T.I. will be able to receive an additional property deduction for the purchase of an apartment in the amount of 1.5 million rubles. (to be returned 195 thousand rubles).
New rules also began to apply to the deduction for credit interest on housing purchased after January 1, 2014:
- the deduction for credit interest is not related to the deduction for expenses for the purchase of housing and can be obtained for a separate object;
- the maximum deduction for credit interest is 3 million rubles. (to be returned 390 thousand rubles);
- unlike the deduction for expenses for the purchase of housing, the deduction for credit interest can be received only once in a lifetime for one property;
Example: In 2016, Panyukov E.I. bought an apartment worth 8 million rubles. To buy an apartment, he took out a mortgage in the amount of 6 million rubles. (on which he will pay interest in the amount of 3.5 million rubles) Panyukov E.I. will be able to receive a basic property deduction in the amount of 2 million rubles. (to be returned 260 thousand rubles), as well as an interest deduction in the amount of 3 million rubles. (to be returned - 390 thousand rubles).
Example: In 2014, Epifanova T.K. I bought an apartment and received a property deduction for purchase costs. In 2017, she bought a new apartment with a mortgage and will be able to receive a deduction for the loan interest paid.
Example: In 2014, Cherezov A.A. I bought an apartment worth 1 million rubles with a mortgage. Cherezov A.A. received a deduction for purchase expenses and a deduction for credit interest. In 2017, he purchased another apartment worth 3 million rubles. (also using credit funds). Cherezov A.A. will be able to receive an additional deduction for purchase expenses (since he did not use it in full), but will not be able to receive an additional deduction for credit interest, since it is provided only for one property.
Is it possible to receive an additional deduction if I used it earlier for housing purchased before January 1, 2014?
As we indicated above, according to the current Tax Code, if the deduction is not received in the maximum amount (i.e. from an amount less than 2 million rubles), then the balance can be received when purchasing other housing properties (paragraph 2, paragraph 1, p. 3 Article 220 of the Tax Code of the Russian Federation).
However, unfortunately, this rule does not apply if you have exercised the right to a deduction for housing purchased before January 1, 2014. In this case, you will not be able to receive the rest of the deduction when purchasing another home. This is due to the fact that the new rules apply only to legal relations that arose after January 1, 2014. If housing was purchased before January 1, 2014, then it is considered that you took advantage of the property deduction according to the “old rules”: the deduction is provided only once in a lifetime for one property (Article 220 of the Tax Code of the Russian Federation, in force before January 1, 2014) . However, repeated receipt of the deduction (even for housing purchased after January 1, 2014) is not allowed.(Clause 2 of Article 2 of Law N 212-FZ, Letter of the Federal Tax Service of Russia dated 09/18/2013 No. BS-4-11/16779@, Letter of the Ministry of Finance of Russia dated 03/07/2017 No. 03-04-05/12936, dated 07/26/2016 No. 03-04-05/43559).
Example: In 2006, Sidorchuk F.M. bought an apartment worth 500,000 rubles and received a tax deduction from it (returned income tax in the amount of 65 thousand rubles). In 2015, Sidorchuk F.M. bought a new apartment worth 3,000,000 rubles and, having read about changes in the law, wanted to receive the rest of the deduction in the amount of 1,500 thousand rubles from the new purchase. In the deduction for the new apartment, Sidorchuk F.M. was refused because he had already taken advantage of the deduction for housing purchased before 2014.
Is it possible to get a deduction for credit interest if you previously only used the deduction for purchase expenses?
The situation often arises that a person received the main property deduction for housing purchased before January 1, 2014, but did not take advantage of the credit interest deduction. In this case, the question arises - is it possible to get a deduction on interest when purchasing a new property? After the changes to the Tax Code of 2014, regulatory authorities for a long time could not come to a common position: opinions were both positive and negative. However, Letter of the Federal Tax Service of Russia dated May 21, 2015 N BS-4-11/8666 put an end to this issue and, fortunately, in favor of taxpayers.
According to this letter (mandatory for use by tax authorities), if you exercised your right to the main property deduction before 2014, then when purchasing a home with a mortgage after January 1, 2014, you will be able to receive a credit interest deduction. This position is confirmed by the Ministry of Finance of Russia in its letter dated April 27, 2016 No. 03-04-05/24331.
Example: In 2013, Shchitov M.A. bought an apartment and received the main property deduction. In 2017, he bought a new apartment with a mortgage. Shchitov M.A. can take advantage of a deduction for the mortgage interest paid on a new apartment, despite the fact that he previously received the main deduction for another apartment.
Example: In 2012, Dikonov A.A. bought an apartment and received a property deduction for the costs of its purchase. In 2013, he bought a second apartment with a mortgage and wanted to get a credit interest deduction on it. However, he was denied the deduction, since a separate deduction for credit interest is possible only for housing purchased after January 1, 2014. If in the future Dikonov A.A. buys a new home using credit funds, he will be able to receive a deduction for the interest paid.
Example: In 2013, Zelenskaya Yu.V. I bought an apartment with a mortgage and received a deduction for purchase costs and loan interest paid. In 2017, she purchased a new apartment with a mortgage. Since the right of property deduction (basic and interest) Zelenskaya Yu.V. If she used an apartment purchased before January 1, 2014, she will not be able to receive a deduction again (both basic and interest).
Receipt of deductions before January 1, 2001 is not taken into account
In conclusion of the article, we note that until 2001, the property deduction was provided on the basis of the Law of the Russian Federation of December 7, 1991 N 1998-1 “On personal income tax.” This law became invalid on January 1, 2001. Therefore, if you claimed a property deduction and all payments on it were made before January 1, 2001, then you can assume that you did not use the deduction. When purchasing another home (after January 1, 2001), you can again receive a property deduction (Letters of the Ministry of Finance of Russia dated February 13, 2014 N 03-04-05/5889, dated July 24, 2013 N 03-04-05/29229).
Example: In 1998, Klestova Ya.F. I bought an apartment. In 1999 and 2000, she submitted 3-NDFL returns to the tax office and received a full property deduction. In 2013, Klestova Ya.F. I bought an apartment again. Since she received the full deduction before January 1, 2001, when purchasing an apartment in 2013, she will be able to take advantage of the property deduction again (according to the rules of Article 220 of the Tax Code of the Russian Federation).
Example: In 1999, Ezhov N.N. bought an apartment. In 2000, 2001, 2002 and 2003, he applied to the tax office to receive a property deduction. In 2017, Ezhov N.N. bought a second apartment. Since part of the payments for the deduction was made after January 1, 2001, N.N. Ezhov can receive a property deduction for the apartment purchased in 2017. can not.
Sections:
What expenses can I get a tax deduction for buying an apartment?
There are four main groups of such costs.
For the purchase of housing
The deduction applies to the purchase of residential houses, apartments, rooms or share(s) in them.
And if the housing was purchased without finishing, then with the help of a deduction you can reimburse the costs of repairs and finishing - both for the cost of finishing materials and for paying for the services of a team of repairmen, as well as for the development of design and estimate documentation for finishing work. But there is one condition: the contract for the purchase and sale of real estate in which these improvements are made must necessarily contain a condition that the property is sold in a state of unfinished construction or without finishing ().
For housing construction
The deduction can also be obtained if the construction of the object has not yet been completed (for example, when participating in shared construction of a house). Please note that in the latter case, in order to receive the deduction, you must have a transfer deed for the apartment or another document on the transfer of the shared construction object by the developer and its acceptance by the participant in the shared construction, signed by the parties. In its absence, even if you have a contract for participation in shared construction and receipts for payment under it, you will not be able to take advantage of the property tax deduction (,).
And in the case of purchasing an apartment under an agreement for participation in shared construction, the rights under which were received by the taxpayer under an agreement on the assignment of rights of claim, to confirm the right to a property tax deduction, the taxpayer submits an agreement on shared construction, an agreement on the assignment of rights of claim to an apartment in a building under construction and an act of transfer apartments to the taxpayer. At the same time, the expenses for purchasing an apartment include expenses incurred by the taxpayer in accordance with the concluded agreement for the assignment of rights of claim under the agreement for participation in shared construction ().
You can also deduct expenses for:
- development of design and estimate documentation;
- purchase of construction and finishing materials;
- construction work or services (completion of a residential building or a share(s) in it that has not been completed) and finishing;
- connecting a house to electricity, water and gas supply and sewerage networks or creating autonomous sources of electricity, water and gas supply and sewerage ().
For mortgage interest
You can compensate the cost of the loan if it is issued for both construction and purchase of housing. In this case, you will need to confirm the fact of payment of interest with payment documents - receipts for receipt orders, bank statements about the transfer of funds from the buyer's account to the seller's account, etc. ().
For the purchase of land
The deduction will be provided to the taxpayer if one of the following circumstances exists: if the house being purchased is located on this land or if the land is provided for individual housing construction.
It should be taken into account that expenses that are accepted for deduction are strictly defined in tax legislation and other expenses are not allowed to be deducted (). Thus, owners of garages and other non-residential real estate will not be able to claim compensation for part of their expenses.
It is important that the property must be located strictly on the territory of Russia (). Thus, a Russian owner of a villa on tropical islands will not be able to take advantage of the deduction when purchasing it.
How much deduction can you get when buying an apartment?
The amount of deductions varies depending on what expenses the taxpayer is claiming for reimbursement:
- for the purchase of real estate or land for housing or intended for its construction: in the amount of actual expenses incurred (), but not more than 2 million rubles. (). Thus, the buyer of an apartment can return no more than 260 thousand rubles on this basis;
- for repayment of mortgage interest: in the amount of expenses actually incurred (), but not more than 3 million rubles. (). Thus, the borrower can return no more than 390 thousand rubles on this basis.
Who can receive a tax refund when buying an apartment?
First of all, current legislation provides for the provision of a tax deduction for the purchase of housing only to the taxpayer. Taxpayers are organizations and individuals who are responsible for paying taxes ().
In addition, as a general rule, individuals must be tax residents of the Russian Federation (). These include citizens who are actually in Russia for at least 183 calendar days over the next 12 consecutive months. This period is not interrupted in the case of short-term (less than six months) trips abroad for treatment, training or work in offshore hydrocarbon fields (). There is no time limit for staying in Russia for representatives of government bodies and local self-government sent abroad, as well as for Russian military personnel serving abroad. These persons are recognized as tax residents, even if during the year they did not spend a single day in Russia ().
Also, a separate procedure has been established for recognizing residents of the Republic of Crimea and Sevastopol as tax residents in 2015. For them, 183 days of stay are calculated during the period from March 18 to December 31, 2014 ().
Persons who are not Russian tax residents can also be personal income tax payers, but only if their source of income is located in Russia (). However, as a general rule, they cannot receive a tax deduction ().
In addition, in order to receive a tax deduction, you must have income itself that is taxed. If the taxpayer does not have any income on which he is obliged to pay personal income tax, then he will not be able to receive a tax deduction. This tax applies to income received by tax residents both from Russian sources and from sources outside the Russian Federation, and for non-residents - only from Russian sources ().
It is important that the deduction is provided only to property owners. If you paid for the purchase of an apartment for another person, but did not become the owner of this property, then you will not be given a tax deduction. Just as they will not provide such a deduction to this person. An exception is the case of acquiring housing as the property of one’s children or wards under the age of 18 or constructing residential real estate for them ().
If an apartment was bought by spouses (and according to the rules of family law it became their common joint property), then the question often arises: is each of them entitled to receive a deduction or only the one in whose name the property is registered? The Russian Ministry of Finance has considered that both spouses can claim the deduction, and both husband and wife are entitled to the deduction in full, up to 2 million rubles. At the same time, the co-owner who has not applied for such a deduction retains the right to receive a property tax deduction for another property in full. True, this rule applies only if the documents confirming the emergence of ownership of the object (or the transfer deed - when acquiring rights to a shared construction project) are drawn up after January 1, 2014 ().
For objects purchased before January 1, 2014, a different rule applies: the amount of the deduction is distributed between spouses in accordance with their written application. Let us remind you that you can get a deduction from income for the three years preceding the year of tax filing (). In other words, if a taxpayer applied for a tax deduction for the purchase of housing in 2018, he will be able to receive a deduction from income of previous periods only for 2017, 2016 and 2015. In this case, the moment of purchasing the apartment does not matter, since there are no restrictions on the period of application for deduction ().
However, if the property was registered by the spouses not as joint property, but as common shared ownership, then each spouse must independently confirm the expenses incurred for its acquisition, and it is for the amount of these expenses that he will be provided with a tax deduction ().
Restrictions on receiving a tax deduction when purchasing an apartment
Thus, a tax deduction on this basis can be obtained only once in a lifetime (). However, one-time use implies the full use of the deduction amount, so using a deduction on several real estate properties is not a violation. Only after receiving the full amount of the tax deduction does the taxpayer lose the right to reuse it. For example, if a citizen purchased an apartment worth 1.5 million rubles, then he will be able to claim a deduction again when purchasing the next apartment or, for example, building a house - but for an amount not exceeding 500 thousand rubles. It should be noted that these rules are in effect only from January 1, 2014, so if you used a tax deduction for housing purchased before this date, then it is no longer possible to claim it again, regardless of the size of the previously provided deduction. So, if the taxpayer from our example purchased the first apartment before January 1, 2014, then the remainder of his deduction (500 thousand rubles) would simply “burn out” (,).
It is important that the rule on transferring part of the unused deduction applies only when purchasing or constructing housing. If a citizen wants to claim a deduction for mortgage interest, he can do this only once, even if the deduction amount does not reach 3 million rubles. ( , ).
A tax deduction will not be provided for part of the cost of housing paid at the expense of other persons (in particular, the employer) or maternity capital and in the case of the acquisition of real estate from interdependent persons. The latter include, for example, a spouse, parents (including adoptive parents), children (including adopted children), full and half brothers and sisters, guardian (trustee) and ward ().
Thus, you can receive a tax deduction when purchasing an apartment if the following circumstances exist simultaneously:
- you are a taxpayer, a Russian tax resident and pay personal income tax;
- the acquired or constructed real estate is located on the territory of Russia;
- you fully or partially independently paid for the specified objects, or interest on credits (loans) for their acquisition or construction and you are their owner;
- you have not previously received a similar property tax deduction in full (or did not receive it in any amount before January 1, 2014, and in relation to the mortgage interest deduction it is required that you have never received it at all before - regardless of whether before or after January 1, 2014);
- the property was not acquired from related parties.
In what cases is it impossible to obtain a property tax deduction for the purchase of housing?
What documents are needed to obtain a tax deduction for an apartment?
To receive a tax deduction for purchased or constructed residential real estate, the following documents will be required:
- (issued by the employer, if there are several of them, then you can get such a certificate from each of them);
- copies of documents confirming ownership of property (certificate of state registration of ownership, agreement on the acquisition of property or on participation in shared construction, acceptance certificate);
- documents confirming expenses incurred during the purchase or construction (sales and cash receipts, receipts, bank statements, acts on the purchase of materials from individuals indicating the address and passport details of the seller and other documents) ();
- documents confirming interest costs for a loan or loan for the purchase of real estate when applying for a deduction on this basis (agreement and schedule of repayment of the loan (loan) and payment of interest on it, payment documents confirming the payment of interest);
- application for a tax deduction;
- a copy of the child’s birth certificate (if the property is registered in the name of a minor child);
- a copy of the marriage certificate (if the property is registered as joint property);
- decision of the guardianship and trusteeship authority to establish guardianship or trusteeship (if real estate is acquired by guardians (trustees) for the ownership of their wards under the age of 18);
- confirmation of the right to receive a tax deduction from the Federal Tax Service (if the deduction is received through an employer).
If a deduction is provided for the purchase of land for individual housing construction, there is one caveat. You can receive such a deduction only after completion of construction and registration of rights to the erected house (). Therefore, submitting to the tax authorities a certificate of ownership of such a plot will not be enough to obtain a tax deduction - you will also need to submit a certificate of ownership of a residential building built on it.
Please note that all documents confirming expenses incurred must be drawn up in the prescribed manner and have all the necessary details, seals and signatures ().
A pleasant New Year's gift for many Russians was Law No. 212-FZ (dated July 23, 2013) “On Amendments to Art. 220 Part II of the Tax Code of the Russian Federation.” It is often mentioned that it came into force a month after publication - that is, October 1, 2013, but 212-FZ itself contains a wonderful phrase: “This Federal Law comes into force... no earlier than the 1st day of the next tax period for tax on income of individuals." Translated from official language into Russian, this means that the law gained real force on January 1, 2014 (since the tax period for personal income tax is a calendar year).
However, it should be explained why this creation of legislators should be considered a pleasant gift. The main novelty of 212-FZ is the possibility of multiple use of tax deductions when purchasing housing.
Previously, there was a strict restriction - such a deduction was provided to a citizen only once in his life, which for many Russians actually meant the loss of tens of thousands of rubles.
In we have already talked about all the benefits of the possibility of reusing tax deductions when buying a home. However, let's recap briefly. At the same time, let’s remember what a tax deduction is.
According to paragraph 2 of paragraph 1 of Article 220 of the Tax Code of the Russian Federation, a person can demand that the budget return to him the income tax that he paid on the amount spent on the purchase of real estate. For example, a person bought an apartment for 1.5 million rubles. Income tax on this amount will be 195 thousand rubles. (remember, the personal income tax rate is generally 13%). That is, the budget will transfer exactly 195 thousand to our hero.
The Tax Code has a clause: regardless of the price of purchased housing, the budget returns tax to the buyer on an amount not exceeding 2 million rubles. Even if a very expensive object is purchased, the treasury will return no more than 260 thousand rubles to the citizen. (the amount of 13 percent personal income tax paid on 2 million).
The two-million barrier, combined with the ban on repeated deductions, means that if a person purchased housing for less than 2 million rubles, then he will receive less than 260 thousand from the budget and will never be able to count on anything else. Not only buyers of cheap apartments found themselves in a similar situation, but also many Yekaterinburg residents (as well as residents of other cities) who purchased housing in shared or joint ownership. In such a transaction, the deduction amount is divided among all co-owners. For example, if a married couple bought a home for 4 million in shared ownership 50/50, then everyone has the right to a deduction in the amount of one million and will receive 130 thousand rubles from the budget. (13% of 1 million rubles). In fact, they took advantage of half the deduction and will never be able to use the other half.
So, if the transaction was completed in 2014 or later, then our heroes receive the right to re-use the tax deduction. Until everyone gets 260 thousand rubles back from the budget.
Purchase, completion and mortgage - three different deductions
Only those who have not used it before and have applied for such a deduction for the first time in relation to an object, the ownership of which was registered no earlier than January 1, 2014, will be able to receive a tax deduction multiple times (when purchasing a home).
It is logical that many citizens who have already taken advantage of the deduction in a reduced form (that is, who have received the right to receive less than 260 thousand rubles from the budget), began to look for ways to fall under the influence of the fresh 212-FZ in order to take advantage of the deduction again and take it completely from budget the amount they promised. In response, the Ministry of Finance of the Russian Federation issued a whole series of official letters (N 03-04-05/51408; N 03-04-05/44997; N 03-04-05/36870 and others) in each of which explained that multiple deductions are the prerogative those who first applied for it after January 1, 2014.
But still…
Kirill Kotov, deputy head of the tax administration department for individuals of the Federal Tax Service of Russia, gave some hope to the Urals, as well as to other Russians. Analyzing Law No. 212-FZ, he noticed that a tax deduction is provided for the amount of the following expenses incurred: firstly, for the purchase of housing; secondly, for the completion (finishing) of housing; thirdly, on mortgage interest. The letters mentioned above state that Law No. 212-FZ applies only to persons whose right to deduction arose after January 1, 2014.
But the very concept of “the emergence of the right to deduction” is not enshrined in law, but follows from decisions of the Supreme Court of the Russian Federation and some departmental papers. However, all these documents relate only to the emergence of the right to deduct COSTS FOR THE PURCHASE OF HOUSING. Obviously, Kirill Kotov concludes, the right to deduct the costs of finishing the housing and paying interest on the mortgage arises in each period of their implementation (which may not coincide with the period in which the right to housing arises).
“...Therefore, it is unclear whether persons who received a deduction for the costs of purchasing the residential property itself before 2014 and took out another such property on credit will be able to take advantage of the right to deduct the costs of finishing this second property and to pay interest on the loan made during the period after January 1, 2014,” the Federal Tax Service employee concludes.
That is, K. Kotov does not exclude a situation where a person who has previously taken advantage of the deduction and is not, it would seem, subject to the provisions of No. 212-FZ, will be able to receive the deduction again, but only in terms of expenses for the completion of a new facility and/or for interest on mortgage loan taken out for its purchase. Provided that these expenses will be incurred after January 1, 2014.
However, Ekaterinburg tax consultants are quite cautious in assessing the possibility of obtaining a repeated deduction in the described situation. They directly say that a citizen will have to prove the right to re-deduction through the court. Well, practice shows that Judge Themis will most likely decide such a legislative conflict not in favor of the taxpayer. However, you can try to wait for judicial precedents to arise.
Income tax deduction is one of the government benefits aimed at supporting citizens who have made expensive real estate transactions.
Dear readers! The article talks about typical ways to resolve legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:
APPLICATIONS AND CALLS ARE ACCEPTED 24/7 and 7 days a week.
It's fast and FOR FREE!
Its essence is to reduce the tax base.
In other words, using this benefit can be based on the value of the property.
Legislation
The issue of granting a deduction is regulated by law.
One of the legal acts is the Tax Code of the Russian Federation. In particular, its articles 217-222 regulate the basic concept and procedure for processing a return.
New rules
In accordance with legislative changes that came into force in 2018, it is not tied to the object itself, but to its recipient.
This means that if there is a refund amount remaining that has not been paid within a year from the moment the right to it became available, then it will not disappear, but will be extended for subsequent years. Moreover, the deduction can now be issued until the maximum amount is reached.
Another provision concerns joint management of property. If jointly, then both of them are entitled to a deduction. Previously, one of them had to refuse to pay funds in favor of the other.
All of these legislative changes have had a major impact on the income tax refund system. It has become many times more perfect and corresponds to its legal status.
Emergence of the right to a personal income tax refund
- Application along with declaration.
- An agreement confirming the transfer of real estate (it can be a purchase agreement, exchange agreement, DDU, etc.).
- Certificate issued from place of work 2-NDFL. It indicates the salary that the applicant receives and the income tax he paid. This document is issued by the accounting department.
- Copies of civil passport pages (personal information and registration).
- Certificate of ownership of real estate.
- If the purchase of an apartment is carried out by spouses jointly, then a certificate of marriage is presented.
If the purchase occurs using a mortgage product, then an agreement concluded with a credit institution and a certificate of payment of interest are provided.
