As stated in the current law of the Russian Federation, every citizen, acquiring real estate, has the right to refund tax deduction in the amount of up to 260 thousand rubles. This practice is primarily aimed at stimulating the real estate market and is a kind of benefit that pushes the population to replace apartments and houses.
At the same time, it should be understood that such a way to get your money back has certain limitations that you need to know exactly, since any mistake can affect the return of funds.
Property tax deduction: size and return period
Article 220 of the Tax Code of the Russian Federation states that a tax deduction is a state benefit aimed at providing a formally employed and deducting 13% income tax to a citizen of the Russian Federation to return part of the money spent when buying an apartment. In fact, this measure is a simple reimbursement of income tax paid.
A citizen who meets the requirements of the law can receive 13% of the amount of money spent on the purchase of new housing. You can return some of the money spent on:
- the purchase of residential premises under the contract of sale;
- private construction;
- land purchase;
- payment of interest on the mortgage;
- repair in the acquired house.
The maximum amount of deduction is 260 thousand rubles, that is, no more than 13% of the 2 million rubles spent on housing. The tax deduction is not issued a one-time amount, but is transferred gradually in accordance with the amount of income tax paid. So the refund will be held every year until the amount is paid in full.
Only the cadastral value is taken into account, the deduction is calculated only for the tax resident, therefore, it is carried out once per person’s entire life.
Who can get a tax deduction
The tax deduction is relatively specific, so there is a fairly large list of people who simply do not fit all categories at the same time.
- A citizen who wants to receive a deduction must be a tax resident of the Russian Federation, and all taxes must be paid, since the amount is refunded from this money.
- To be formally employed. This requires a monthly tax payment of 13%.
- An apartment can be bought only with the help of own funds or credit, such as through a mortgage. When participating in the purchase of an apartment of any third-party government programs, such as maternity capital, a deduction for a tax resident is prohibited.
- Buying a home is only allowed from an outsider. The sale party should not be a relative.
Such a tax refund is suitable only for those people who are not on the verge of losing their job and get a good salary, because otherwise it will take a very long time to receive the payment. You can get it only once in your life when buying property after 2014.
Ways to get
There are 2 ways to return funds spent on the purchase of new housing. Assistants in this case may be:
- the head of the organization in which the applicant works;
- tax officers.
- If a citizen decides to receive a deduction through the head of his organization, then first of all he should go to the tax inspector and receive from him a special confirmation allowing him to receive this refund. The employee himself gives the manager this confirmation, and then the salary is paid monthly without writing off income tax until the end of the year. To continue making payments, you need a new confirmation, the receipt of which is allowed only from the new calendar year. Such a document will be ready only in a month, so for the first month the tax will be deducted from the salary due to the lack of confirmation.
- In the second method of receipt is required to contact the tax office immediately with the entire list of necessary documents. You must first fill out the form 3-NDFL. If the documents are sufficient, a citizen will receive funds commensurate with the tax deducted. One-time payment is possible for the entire calendar year.
Each year, you will need to confirm the right to a tax deduction to the tax office with the entire package of documents.
Required package of documents and deadlines
For registration it is necessary to provide a package of documents consisting of:
- based on a sample application for funds;
- copies of a passport or identity document;
- the original contract of sale with a copy;
- documents confirming the ownership of the living space;
- saves INN;
- statements confirming the transfer of funds in payment for housing;
- completed certificates 2-NDFL and 3-NDFL.
If the apartment was bought by a married couple, then you can, if you have a special application, divide the tax deduction between them. A sample of such a statement also has a specific form.
All documentation submitted to the tax authority is thoroughly checked, especially for this form 3-NDFL. This form is made only after the end of a certain tax period and is confirmed by other papers.
The tax declaration is provided at the place of registration, although you can fill it out using an online service or by contacting a specialist who will help you avoid mistakes when filling it out. Such a declaration is required to provide, so its correct filling plays a significant role.
The declaration must contain the following data:
- information about the citizen applicant;
- full amount of all income received by a person in the territory of the Russian Federation;
- the cadastral value of the purchased living space, and subsequently - the amount of the balance and the money received.
The tax authority is given about 3 months to check the documentation, often additional documents are required. Denouncing the required papers is not considered a reason for delayed verification.
If the check confirms the right to a tax deduction, then the amount of money determined by the law will be credited to the account after 30 days. The approximate payment period after submission of documents in January - May of the same year.
It is possible to shorten the inspection period to one month if you contact the local tax authorities to confirm the permit for tax deduction.
The time for checking and reimbursement of the deduction through the employer is much less, and it will be possible to receive payments through the accounting department at the place of work. The method of obtaining a tax deduction through an accountant is faster, since it does not require an office audit.
Restrictions on deducting
In 2014, there were big changes in tax legislation regarding property deduction. The law states that any citizen who works on a permanent basis and pays taxes on time after buying a home is entitled to a tax deduction.
The most significant limitation was the amount of payment. A certain maximum was established - 260 thousand rubles, since only 2 million are taken into account from the amount of the housing purchase. The apartment itself may be more expensive, but the deduction is clearly fixed.
In this new law is allowed to receive deductions from several residential premises, while their total price is less than the established limit of 2 million. This allows low-cost housing buyers to “get” the required amount by purchasing another room.
Another innovation was the receipt of mortgage payments, since the deduction comes only from their interest. It is given once per citizen and only from one dwelling.
The number of apartments purchased using mortgage lending is not taken into account. However, the borrower can choose for himself what kind of housing will be compensated.
After 2014, the overpayment limit was also set - no more than 3 million. At the same time, real estate should be located only on the territory of the country, and to receive the paid amount of the loan must have an exact purpose, since the mortgage could be used not only for buying an apartment, but also for building up the plot.
The main disadvantage of the new law is the possibility of deducting only those citizens who have never exercised this right. If it was received before 2014, even if the payments were redeemed only partially, and not fully, the person loses the right to re-compensation.
Receiving payments for pensioners is possible, since it is allowed to be transferred to three previous tax periods. This applies to both retired workers who continue to work, who have already gone on vacation. Until 2014, the first category was forbidden to receive such a deduction.
However, most often receiving payments for a pensioner is impossible, since in the Russian Federation pensions are not subject to income tax. Since there is no withdrawal of money, there is no reason to return it either.
Such cash payments are weighty benefits for any citizen of the Russian Federation. After 2014, they became more liberal and equalizing, since the amount has a limit. But it should be borne in mind that the cost of housing in the country is quite high, so buying housing less than 2 million in the city is quite difficult, and the benefit itself is simply to return the money paid in tax.
