Russian citizens can apply for a property tax deduction a year after the purchase of an apartment. In such a situation, the previously paid income tax is refundable.
Its size is established by the legislator depending on the amount of tax paid, the tax base.
As a rule, it includes wages, other incomes of citizens. What documents are needed for a tax refund when buying an apartment and how to make it?
The concept of "tax deduction" means the tax withheld from citizens on the income received by them.
The state returns to its citizens as compensation for the funds spent on the purchase of housing, as noted in the provisions Article 220 of the Tax Code of the Russian Federation.
It should be noted that the tax deduction can only be received for the last three years.
According to the provisions of the tax code 13% of the cost of the purchased housing is subject to return regardless of the type of transaction.
The tax deduction is given to both parties, that is, the seller of the apartment and the buyer, subject to their official employment. When buying an apartment before January 1, 2014, the property deduction is provided once.
The above restriction is introduced by the norms of acts, which include:
- letter of the Federal Tax Service of the Russian Federation, published on September 18, 2013 under the number BS-4-11/16779;
- letters of the Ministry of Finance published on March 13, 2015 under the number 03-04-05/13501, on February 10, 2015 under the number 03-04-05/5616 and on August 9, 2013 under the number 03-04-05/32324;
- Federal Law No. 212-FZ, article 2.
Warning!
When employed in several places, a deduction can be obtained from all employers by submitting to them separate documents received from the tax service. When a transaction is made jointly by spouses, each of them has the right to receive a deduction.
Its size is determined based on the statements of the parties, which contain the results of the distribution of the deduction between them. When buying an apartment in shared ownership, the deduction is calculated in proportion to the expenses of the persons involved in the transaction.
As a rule, the tax service does not object to providing a deduction in cases where a transaction was made under an exchange agreement with an additional payment. This rule is provided for by the provisions.
According to the regulations governing the payment of insurance premiums, amendments were made to the taxation code of citizens. They touched upon the property tax deduction, which is granted when citizens purchase land plots and build their own housing.
The tax deduction for acquired property is provided to citizens of Russia, subject to their official employment.
It can also be claimed by foreign citizens who live and work in the country, being tax residents.
When buying an apartment, the size of the tax base is reduced by the value of the property deduction. Its maximum amount established by the legislator is 2,000,000 rubles. In this case, an amount equal to 260,000 rubles is subject to return.
According to the innovations of the Tax Code, a deduction, if when buying the first one, the amount of the deduction was less than the due amount.
It is provided at a time at their total cost, but only within the limit established by the legislator. This norm is established by Article 220 of the Tax Code.
According to the norms of the Tax Code, the procedure for the return of the paid tax is carried out in the application form.
It indicates the bank account number where the funds due to be returned should be transferred.
The procedure for the return of funds paid to the state treasury is carried out in the following sequence:
- writing an application for submission to;
- preparation of a tax return;
- submission of an application together with the required documents to the tax service;
- verification by the tax service of the documents submitted for consideration, the information contained in them. As a rule, it lasts three months, after which a decision is made to grant a property deduction;
- sending the IFTS to the applicant a notification of the decision;
- making a payment, for which one calendar month is allotted.
Attention!
The legislator has not introduced restrictions on the submission of documents for obtaining a deduction. It can be obtained both from the tax office and from the employer. If the application is submitted to him, then the applicant is no longer withheld income tax until the full repayment of the amount of the deduction.
Application and documents to the IFTS can be:
- hand over personally in the department of the tax service at the place of residence;
- send by registered mail with notification;
- submit through a trustee by issuing a power of attorney for him in a notary's office.
When applying for a deduction, the employer must attach to it an official paper received from the IFTS on the provision of a property deduction.
What documents are required (list) To receive a property deduction, citizens should submit certain types of documents to the regional department of the Federal Tax Service.
They are attached to the application, which is submitted in the prescribed manner. Documents can be submitted at the end of the current year in which the apartment was purchased.
Required documents:
- passports of citizens who bought an apartment;
- certificate;
- birth certificate of the child, if the apartment was purchased in his name;
- Marriage certificate;
- a certificate dated by the year for which you want to return the funds;
- completed tax return;
- certificate of ownership of the property (copy) or deed of transfer, if the apartment was bought under an equity participation agreement during the construction of a new building;
- certificate of registration of the purchased apartment in Rosreestr;
- contract of sale;
- official paper confirming payment for housing;
- a loan agreement, if the apartment was bought under a mortgage lending program;
- certificate of interest paid for the past year, if the apartment was purchased with credit funds.
The tax return must be filed annually before the end of the payment period, because the amount of taxes paid does not cover the amount due for a refund for one calendar year.
In the original, certificates are submitted - 2 personal income tax and 3 personal income tax, copies of other documents are allowed. But they must be certified in a notary's office in accordance with the rules of notarial office work.
According to generally accepted rules, an application for a property deduction is written in the name of the head of the tax service.
It is written in an arbitrary form, since a single unified form has not been established by the legislator.
But in any case, it must be written correctly, without corrections and amendments, while observing the rules of clerical office work.
The application must indicate:
- the address of the apartment to be acquired;
- technical, planning characteristics of the purchased apartment;
- names of documents on the basis of which the apartment becomes the property of the applicant:
- bank details where the deduction will be transferred.
Info
The application must list the list of documents that are attached to it. It is signed personally by the applicant, the signature is deciphered, the date of its writing is affixed. A sample of writing can be found on the official website of the Federal Tax Service.
How much tax credit can be refunded
There are two variables that affect the amount of the deduction that is refundable:
- The cost of purchasing an apartment;
- The amount of taxes paid.
In total, a maximum of 13% of the amount spent on the purchase of housing is subject to return, however, the cost of the apartment will be estimated at a maximum of 2 million rubles, that is, the largest amount that you can return is 13% of 2 million - 260 thousand rubles.
A small nuance - if the apartment was purchased before 2008, then the maximum appraised value of the apartment will be 1 million rubles.
For each year, the law is allowed to return no more than 13% of the amount transferred to the state as income tax, however, the full amount can be returned within several years, until full repayment.
Tax refund when buying an apartment on a mortgage
If you purchased housing before 2014 with a mortgage, then the entire amount of tax paid on the purchase of housing and mortgage expenses is subject to a refund, without restrictions on the assessment of the value of housing, which we wrote about earlier.
If housing was purchased with a mortgage after 2014, then the maximum value of real estate appraisal cannot exceed 3 million rubles, which means that personal income tax is returned when buying an apartment on a mortgage
subject to a maximum of 390 thousand rubles.
To better understand the numbers, here are some illustrative examples:
Example #1
Vasily bought apartments in 2015 for 3 million rubles, but in a year he earned only 500 thousand rubles, paying 65 thousand taxes.
Thus, in total, Vasily will be able to return only 13% of 2 million (because this is the maximum at which the apartment will be valued), which equals 260 thousand rubles.
Specifically, for 2015, Vasily will return 65 thousand rubles, the rest of the amount will flow over to subsequent years.
Example #2
Fedor purchased apartments in 2013 for 1.5 million rubles. In 2016, he decided to take advantage of the apartment tax refund.
The total refund amount is 195 thousand rubles. From 2013 to 2015, Fedor annually earned 500 thousand and paid 65 thousand income taxes. So Fedor will return 65 thousand for 2013, 65 for 2014 and 65 for 2015, thus returning the full amount due by law.
Spouses, children, pensioners
Joint ownership (family)
When purchasing an apartment by a husband and wife in equal shares, in order to receive a deduction, you must:
- Submit a marriage certificate;
- A document specifying the size of shares.
If only one of the spouses works in a marriage, then the tax deduction is made only for the share assigned to the officially employed spouse.
To summarize: In the case of fixing equal shares of real estate, each of the spouses has the right to claim only their half.
If you want to receive the full amount, and not deal with the shares, then when purchasing, you must immediately register the property as a joint property.
Shareholder - child
Minor children also have the right to receive a deduction, however, the funds will be transferred to the guardian or parent. If the child is the owner or shareholder, then the deduction is made out to him.
List of additional documents:
- Copy and original of birth certificate;
- Papers indicating the share / size of the property owned;
- Guardianship decision.
Pensioners
The possibility of obtaining a tax deduction is also available to people of retirement age. The deduction is available to the unemployed and officially employed pensioners.
Funds are distributed on the basis of pre-retirement tax contributions.
Attention: From the moment of the last official place of work and until the moment of filing documents for a tax deduction, it can take no more than 3 years. (Applies to pensioners who are not officially employed).
