Property deductions from 2021

All tax payers who conscientiously perform their duties can count on various types of government benefits. For example, when purchasing property, they can save their money by receiving a property deduction.

Taxpayers have the opportunity to issue a refund using two methods:

Upon a direct visit to the tax office;
Using a virtual application.

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique. If you want to find out how to solve your specific problem, please contact the online consultant form on the right. It's fast and free! Or call us at :

+7 Moscow, Moscow region

+7 St. Petersburg, Leningrad region

8 Federal number (free call for all regions of Russia)!

Reimbursement of tax deduction for the purchase of an apartment

To date, there are no publicly available statistics on the number of applications for tax deductions, however, real estate market experts agree that from year to year the number of people wishing to reimburse part of their costs for purchasing an apartment is growing. One can note a general trend of increasing since the introduction of an article on tax deductions into the Tax Code in the number of people who use their right to this deduction. The fact is that when this norm first appeared in the Tax Code, there was no practice of its application, so the tax inspectorate was wary of this innovation. Now the procedure for applying this norm has already been established, all forms and list of documents have been approved. Therefore, many more people began to use property deductions.

The amount of the deduction

Perhaps the most important question on most home buyers' minds is how much compensation they can expect.

As mentioned above, you should not hope for large compensation. Its size is determined based on the cost of the apartment, but not the whole, but only a part.

From January 1, 2008, the size of the base for calculating the property deduction was increased from 1 million to 2 million rubles, of which 13% is returned to the buyer. Accordingly, if the purchase and sale transaction was completed in 2008, then the maximum payment amount will be 260 thousand rubles, and for housing purchased earlier - 130 thousand rubles. Compared to the cost of the apartment, the money is very small. But, as they say, everything is relative.

For a business class apartment costing, say, 15 million rubles, this figure will not play a role. But when buying an apartment worth 5-6 million rubles, this will already be about 5% of the total transaction amount, which is not so bad.

Tax deduction for mortgage

There is a separate story with receiving a tax deduction when buying an apartment with a mortgage. Article 220 of the Tax Code states that “the property tax deduction cannot exceed 2 million, excluding amounts aimed at repaying interest on targeted loans spent by the taxpayer on new construction or the purchase of housing in the Russian Federation.” That is, in this case, in addition to receiving 13% of the base of 2 million rubles, compensation can also be received from interest for the entire loan period.

It's easier to explain with an example. Let's take an abstract apartment worth 9 million rubles. Let's say the down payment is 30% (2.7 million rubles), and for the remaining part a loan is taken out in the amount of 70% of the cost of the apartment (6.3 million rubles) for a period of 15 years at 15% interest per annum. Over the entire loan repayment period, the borrower will pay 9.5 million rubles in interest. Accordingly, in this case, he will be able to receive another 13% of this amount as a tax deduction, in addition to 260 thousand rubles, which are due for the very fact of buying and selling an apartment. In total, the refund from the tax authorities will amount to about 1.5 million rubles, which will be more than 15% of the original cost of the purchased property.

The procedure for obtaining a property deduction when purchasing an apartment

Who is entitled to a deduction when purchasing a home?

Officially employed citizens of the Russian Federation have a full legal right to receive a deduction when purchasing housing, for whom the employer pays a tax of 13 percent to the state treasury every month.

Tax deduction for purchasing an apartment 2021: changes.

Read about calculating tax when donating an apartment and the procedure for paying it here.

How to calculate tax based on the cadastral value of an apartment, read the link:

Each such citizen can return the same amount of tax when purchasing housing, to be more precise, under the following circumstances:

Purchasing any type of residential real estate (rooms, houses, apartments);
Construction of a private residential building;
Any type of expenses associated with construction work, repairs and finishing can be reimbursed (while retaining payment documents);
There is also the right to return funds paid to pay off mortgage interest.

Who will not be able to return the paid tax?

It will not be possible to obtain a tax refund when purchasing real estate when:

The property was purchased before 2014 and the right to receive a deduction has already been used by the buyer;
If housing was purchased after 2014, but the designated limit was exhausted (more on this later);
When purchasing housing from one of your close relatives (sister, brother, daughter, son, mother, father);
In case of non-payment of income tax (if there is no official work);
When direct payments of funds for the purchased housing are made by the employer (for example, the company where the citizen is employed financially participated in the purchase of housing);
When various types of government programs and subsidies were used to partially repay the amount needed to purchase housing, for example, maternal capital was spent.

How many deductions can you get when purchasing a home?

There may be 2 options here:

When residential real estate was purchased before 2014, according to paragraph 27, paragraph 2, paragraph 1, Article 220 of the Tax Code of the Russian Federation, the deduction can be obtained only once in your entire life, regardless of how much the living space cost;
When real estate was purchased after 2014, there is the possibility of repeatedly receiving a tax refund, however, within the clearly defined framework of the law - 260 thousand rubles, since the maximum amount determined by the state as acceptable for processing a refund from the purchase of housing is 2 million rubles.

How much money can be returned?

What kind of government compensation can you receive if you purchase real estate after 2014? The return limit is 2 million rubles. Only 13 percent of them are available for return, that is, 260 thousand rubles.

Every year it is possible to return the income tax paid by the employer to the state in the amount of 13 percent for the reporting period. The remainder of the funds will not be burned, and it can be returned next year when making a return, until the outlined limit is completely exhausted.

You can submit a declaration showing your income to the inspectorate for the current year and for the previous 3 years, however, this will be discussed further. First, you need to clearly understand the amount of allowable compensation that can be received when purchasing real estate.

In order to understand everything clearly, it is necessary to consider everything with an example.

An example for calculating a deduction for the purchase of real estate (examples are considered under the conditions of purchasing housing after 2014).

First. In 2015, housing was purchased at a price of 2.5 million rubles. Throughout the year, you were officially employed, and your salary was 60 thousand rubles. That is, in a year, in 2021, you can write a corresponding application to the tax office at your place of residence to process a refund of tax amounts when purchasing a home.

The maximum amount of funds subject to return will be 13 percent of 2 million rubles, that is, 260 thousand rubles. Since the total amount of annual tax deductions for 2015 is 93.6 thousand rubles (60 thousand x 0.13 x 12 months), then the refund is due exactly for this amount.

The rest of the funds can be returned to you in the following years, provided that you maintain official employment.

For example, in 2021, the period of your official employment was a total of 3 months, with a salary of 20 thousand rubles, therefore, in 2021 you can count on a return in the amount of 7.8 thousand rubles (20 thousand x 0.13 x 3 ). The remaining amount, equal to 158.6 thousand rubles (260 thousand - 93 thousand - 7.8 thousand), can be returned in the following years.

Second. The apartment was purchased at a price of 1.5 million rubles, after which a deduction was issued. Under these conditions, you can count on a deduction equal to 195 thousand rubles (13 percent of 1.5 million rubles). However, a little later you purchased another home at a price of 2 million rubles.

In accordance with the law, you have the right to return 65 thousand rubles (13 percent of 500 thousand rubles) from a completed purchase, since the general price limit is 2 million rubles.

Documents that need to be collected to apply for a deduction from the purchase of real estate

To return the amount of tax on the purchase of housing, first of all, you must submit an application to the tax service at your place of residence, according to the established template, attaching to it the necessary list of documentation with prepared copies.

Thus, the list of documentation required in 2021 to apply for a deduction is presented by the following documents:

A copy of your passport;
Real estate purchase and sale agreement (including a copy thereof);
Title documents for housing: a copy of a certificate confirming the registration of property or an act confirming the transfer of housing, if the latter was acquired during the construction of a house under the terms of an equity participation agreement;
Copies of documents confirming payment for the purchase of housing (checks, statements and other payment documents);
A copy of the Taxpayer Identification Number (TIN), a certificate confirming income taken from the place of work, Form 2 of the Personal Income Tax;
There is also a need to provide a declaration recording the annual income of Form 3 Personal Income Tax for the previous year (calendar);
And, of course, an application for processing a refund of the deduction. In addition to the specified list of documentation, you may need to provide other documents; for example, the tax service may require you to fill out a separate application to distribute the deduction between two spouses (in case of an officially registered marriage).

Tax deduction and repair

In addition, when calculating the amount of tax deduction, there is one more nuance.

Let's say you're lucky and you bought an apartment worth 1.5 million rubles on the primary market. You planned to spend another 500 thousand rubles on finishing and repairs. It is also possible to receive 13% from this amount. This is possible if you buy an apartment in a new building and your contract states that it was sold without finishing. Then the cost of spent finishing materials can be attributed to expenses associated with its acquisition.

However, it is important to keep all receipts and contracts with written amounts indicating the funds spent on repairs. This may include the cost of purchasing finishing materials and paying for finishing work. But when buying an apartment on the secondary market, this option is hardly possible. If the apartment was purchased with renovations, but you did not like it and you decided to remodel it, then such a case does not fall under the scope of this rule.

How to get a tax deduction?

First, you need to decide in what form you want to receive a tax deduction. There are two options. The first is to receive money from the state directly into your current account. In the second case, you can take advantage of this benefit in order not to pay tax on income at your main place of work, that is, receive a salary plus 13%, which the employer transfers to the tax office.

Based on the preferred option, the time is selected when exactly you need to submit documents to the tax office. If everything is in order with the documents, then the refund occurs quite quickly: as a rule, the amount is transferred to your account within a month, maximum three.

If you want not to pay taxes on income, then it is not necessary to wait for the expiration of the tax period; you can submit documents immediately after the completion of the purchase and sale transaction. After checking the package of documents, the tax inspector will issue a notice to the employer.

With this notification, the tax office confirms that the person is entitled to a tax benefit. From this moment on, the employer will not deduct taxes from the employee on his salary and other payments, for example, bonuses.

The third and final step on the path to obtaining a tax deduction is directly collecting documents and submitting them to the tax office. As a rule, the greatest number of difficulties arise at this stage. First you need to correctly fill out a tax return on 10 sheets. Not everyone can do this on their own, so today there are many firms on the legal services market that will be happy to do this for you for a small fee.

To begin the procedure for processing a tax deduction, you must contact the tax authorities at your place of registration to clarify the list of documents required to obtain a tax deduction. At the end of the reporting period, the taxpayer fills out a tax return and submits it, along with the prepared package of documents, to the tax authority. If the tax inspector’s response is positive, you must write an application to transfer the deduction amount to your personal bank account.

Professional legal assistance:

(351) 233-50-35

Article 220 of the Tax Code of the Russian Federation (as of 08/01/2012)

Article 220. Property tax deductions

1. When determining the size of the tax base in accordance with paragraph 3 of Article 210 of this Code, the taxpayer has the right to receive the following property tax deductions: (as amended by Federal Law No. 216-FZ of July 24, 2007) 1) in the amounts received by the taxpayer in the tax the period from the sale of residential houses, apartments, rooms, including privatized residential premises, dachas, garden houses or land plots and shares in the said property that were owned by the taxpayer for less than three years, but not exceeding a total of 1,000,000 rubles, as well as in amounts received during the tax period from the sale of other property that was owned by the taxpayer for less than three years, but not exceeding a total of 250,000 rubles. (as amended by Federal Laws dated August 20, 2004 N 112-FZ, dated July 27, 2006 N 144-FZ, dated July 19, 2009 N 202-FZ, dated December 27, 2009 N 368-FZ) Instead of using the right to receive a property tax deduction provided for by this subparagraph, the taxpayer has the right to reduce the amount of his taxable income by the amount of expenses actually incurred by him and documented expenses associated with the receipt of this income, with the exception of the sale by the taxpayer of securities belonging to him. When selling a share (part thereof) in the authorized capital of an organization, when assigning rights of claim under an agreement for participation in shared construction (an investment agreement for shared construction or under another agreement related to shared construction), the taxpayer also has the right to reduce the amount of his taxable income by the amount actually produced them and documented expenses associated with obtaining these incomes. (as amended by Federal Laws dated August 20, 2004 N 112-FZ, dated July 24, 2007 N 216-FZ) The paragraph became invalid on January 1, 2007. — Federal Law of 06.06.2005 N 58-FZ. The paragraph has been deleted. — Federal Law of May 30, 2001 N 71-FZ. When selling property that is in common shared or common joint ownership, the corresponding amount of property tax deduction calculated in accordance with this subparagraph is distributed among the co-owners of this property in proportion to their share or by agreement between them (in the case of the sale of property that is in common joint ownership ). The provisions of this subparagraph do not apply to income received by individual entrepreneurs from the sale of property in connection with their business activities. When selling shares (shares, shares) received by the taxpayer during the reorganization of organizations, the period of their ownership by the taxpayer is calculated from the date of acquisition of ownership of the shares (shares, shares) of the reorganized organizations. (paragraph introduced by Federal Law of 06.06.2005 N 58-FZ) When selling property received by a taxpayer-donor in the event of dissolution of the target capital of a non-profit organization, cancellation of a donation, or in another case, if the return of property transferred to replenish the target capital of a non-profit organization is provided donation agreement and (or) Federal Law of December 30, 2006 N 275-FZ “On the procedure for the formation and use of endowment capital of non-profit organizations”, the expenses of the taxpayer-donor are recognized as documented expenses for the acquisition, storage or maintenance of such property incurred by the donor as of the date transfer of such property to a non-profit organization - the owner of the endowment capital to replenish the endowment capital of the non-profit organization. (paragraph introduced by Federal Law of November 21, 2011 N 328-FZ) The period of ownership of real estate received by a taxpayer-donor in the event of dissolution of the endowment capital of a non-profit organization, cancellation of a donation, or in another case, if the return of such property transferred to replenish the endowment capital non-profit organization, provided for by the donation agreement and (or) Federal Law of December 30, 2006 N 275-FZ “On the procedure for the formation and use of endowment capital of non-profit organizations”, is determined taking into account the period of such property being in the ownership of the taxpayer-donor until the date of transfer of such property to replenish the target capital of a non-profit organization in the manner established by Federal Law of December 30, 2006 N 275-FZ “On the procedure for the formation and use of target capital of non-profit organizations”; (paragraph introduced by Federal Law of November 21, 2011 N 328-FZ) 1.1) in the amount of the redemption value of the land plot and (or) other real estate located on it, received by the taxpayer in cash or in kind, in the event of seizure of the specified property for state or municipal needs; (Clause 1.1 introduced by Federal Law dated December 27, 2009 N 379-FZ) 2) in the amount of expenses actually incurred by the taxpayer: (as amended by Federal Law dated July 19, 2009 N 202-FZ) for new construction or acquisition of residential property on the territory of the Russian Federation houses, apartments, rooms or shares (shares) in them, land plots provided for individual housing construction, and land plots on which the purchased residential buildings are located, or shares (shares) in them; (paragraph introduced by Federal Law No. 202-FZ of July 19, 2009) for the repayment of interest on targeted loans (credits) received from Russian organizations or individual entrepreneurs and actually spent on new construction or the acquisition of a residential house, apartment, room or share(s) in them, land plots provided for individual housing construction, and land plots on which the purchased residential buildings are located, or share(s) in them; (paragraph introduced by Federal Law No. 202-FZ of July 19, 2009) for the repayment of interest on loans received from banks located on the territory of the Russian Federation for the purpose of refinancing (on-lending) loans for new construction or the purchase of a residential building or apartment on the territory of the Russian Federation , rooms or shares (shares) in them, land plots provided for individual housing construction, and land plots on which the purchased residential buildings are located, or shares (shares) in them. (paragraph introduced by Federal Law No. 202-FZ of July 19, 2009) When purchasing land plots provided for individual housing construction, or a share(s) in them, a property tax deduction is provided after the taxpayer receives a certificate of ownership of the house. (paragraph introduced by Federal Law No. 202-FZ of July 19, 2009) The actual costs of new construction or the acquisition of a residential building or share(s) in it may include: costs for the development of design and estimate documentation; (as amended by Federal Law No. 215-FZ of July 18, 2011) expenses for the purchase of construction and finishing materials; expenses for the purchase of a residential building, including unfinished construction; expenses associated with construction work or services (completion of a house that has not been completed) and finishing; costs of connecting to electricity, water, gas supply and sewerage networks or creating autonomous sources of electricity, water, gas supply and sewerage. The actual costs of purchasing an apartment, room or share(s) in them may include: (as amended by Federal Law No. 144-FZ dated 27.07.2006) costs of purchasing an apartment, room, share(s) in them or rights to an apartment , a room in a house under construction; (as amended by Federal Law No. 144-FZ of July 27, 2006) expenses for the purchase of finishing materials; expenses for work related to the finishing of an apartment, room, share(s) in them, as well as expenses for the development of design and estimate documentation for finishing work. (as amended by Federal Laws dated July 19, 2009 N 202-FZ, dated July 18, 2011 N 215-FZ) Acceptance for deduction of expenses for the completion and finishing of a purchased house or finishing of a purchased apartment or room is possible if in the contract, on on the basis of which such an acquisition was made, the acquisition of an unfinished residential building, apartment, room (rights to an apartment, room) without finishing or share(s) in them is indicated. (as amended by Federal Law No. 144-FZ dated 27.07.2006) The total amount of the property tax deduction provided for by this subclause cannot exceed 2,000,000 rubles, excluding amounts allocated to repay interest: (as amended by Federal Law dated 19.07. 2009 N 202-FZ) for targeted loans (credits) received from Russian organizations or individual entrepreneurs and actually spent on new construction or acquisition on the territory of the Russian Federation of a residential building, apartment, room or share(s) in them, land plots provided for individual housing construction, and land plots on which the purchased residential buildings are located, or share(s) in them; (paragraph introduced by Federal Law No. 202-FZ of July 19, 2009) for loans provided by banks located on the territory of the Russian Federation for the purpose of refinancing (on-lending) loans (credits) received for new construction or acquisition of a residential building on the territory of the Russian Federation, apartments, rooms or shares (shares) in them, land plots provided for individual housing construction, and land plots on which the purchased residential buildings are located, or shares (shares) in them. (paragraph introduced by Federal Law No. 202-FZ of July 19, 2009) To confirm the right to a property tax deduction, the taxpayer submits: when constructing or purchasing a residential building (including unfinished construction) or a share(s) in it - documents confirming the right ownership of a residential building or share(s) in it; when purchasing an apartment, room, share(s) in them or rights to an apartment, room in a house under construction - an agreement on the acquisition of an apartment, room, share(s) in them or rights to an apartment, room in a house under construction, an act of transfer of an apartment, rooms, shares (shares) in them to the taxpayer or documents confirming ownership of the apartment, room or share (shares) in them; (as amended by Federal Law No. 144-FZ of July 27, 2006) when purchasing land plots provided for individual housing construction, and land plots on which the acquired residential buildings are located, or shares (shares) in them - documents confirming ownership to a land plot or share(s) in it, and documents confirming ownership of a residential building or share(s) in it. (paragraph introduced by Federal Law No. 202-FZ of July 19, 2009) The specified property tax deduction is provided to the taxpayer on the basis of a written application from the taxpayer, as well as payment documents drawn up in the prescribed manner and confirming the fact of payment of funds by the taxpayer for expenses incurred (receipts for receipt orders , bank statements about the transfer of funds from the buyer’s account to the seller’s account, sales and cash receipts, acts on the purchase of materials from individuals indicating the address and passport details of the seller and other documents). When purchasing property into common shared or common joint ownership, the amount of property tax deduction calculated in accordance with this subparagraph is distributed among co-owners in accordance with their share(s) of property or with their written application (in the case of purchasing a residential house, apartment, room in common joint property). (as amended by Federal Law No. 144-FZ of July 27, 2006) The property tax deduction provided for by this subparagraph does not apply in cases where the payment of expenses for the construction or acquisition of a residential building, apartment, room or share(s) in them is for the taxpayer is made at the expense of employers or other persons, funds of maternal (family) capital, directed to ensure the implementation of additional measures of state support for families with children, through payments provided from the federal budget, budgets of constituent entities of the Russian Federation and local budgets, as well as cases where the purchase and sale transaction of a residential building, apartment, room or share(s) in them is made between individuals who are interdependent in accordance with Article 105.1 of this Code. (as amended by Federal Laws dated November 29, 2007 N 284-FZ, dated July 18, 2011 N 227-FZ) Repeated provision of the property tax deduction provided for by this subparagraph to the taxpayer is not permitted. If during a tax period the property tax deduction cannot be used in full, its balance may be transferred to subsequent tax periods until it is fully used, unless otherwise provided by this subparagraph. (as amended by Federal Law No. 330-FZ dated November 21, 2011) Taxpayers receiving pensions in accordance with the legislation of the Russian Federation, if they do not have income taxed at the tax rate established by paragraph 1 of Article 224 of this Code, have the remainder of the property deduction may be carried forward to previous tax periods, but not more than three. (paragraph introduced by Federal Law dated November 21, 2011 N 330-FZ) (clause 2 as amended by Federal Law dated August 20, 2004 N 112-FZ) 2. Property tax deductions (with the exception of property tax deductions for transactions with securities) are provided when a taxpayer submits a tax return to the tax authorities at the end of the tax period, unless otherwise provided by this article. (as amended by Federal Laws dated December 29, 2000 N 166-FZ, dated May 30, 2001 N 71-FZ, dated August 20, 2004 N 112-FZ, dated December 27, 2009 N 368-FZ) Property tax deduction when determining the tax base for transactions with securities are provided in the manner established by Article 214.1 of this Code. (paragraph introduced by Federal Law No. 71-FZ of May 30, 2001) 3. The property tax deduction provided for in subparagraph 2 of paragraph 1 of this article may be provided to the taxpayer before the end of the tax period when he contacts the employer (hereinafter referred to in this paragraph as the tax agent) subject to confirmation of the taxpayer's right to a property tax deduction by the tax authority in a form approved by the federal executive body authorized for control and supervision in the field of taxes and fees. The taxpayer has the right to receive a property tax deduction from one tax agent of his choice. The tax agent is obliged to provide a property tax deduction upon receipt from the taxpayer of confirmation of the right to a property tax deduction issued by the tax authority. The taxpayer’s right to receive a property tax deduction from a tax agent in accordance with this paragraph must be confirmed by the tax authority within a period not exceeding 30 calendar days from the date of filing a written application by the taxpayer, documents confirming the right to receive a property tax deduction, which are specified in subparagraph 2 paragraph 1 of this article. If, at the end of the tax period, the amount of the taxpayer’s income received from the tax agent was less than the amount of the property tax deduction determined in accordance with subparagraph 2 of paragraph 1 of this article, the taxpayer has the right to receive a property tax deduction in the manner provided for in paragraph 2 of this article. (clause 3 introduced by Federal Law No. 112-FZ of August 20, 2004) 4. If, after the taxpayer has submitted in the prescribed manner an application to the tax agent to receive a property tax deduction provided for in subclause 2 of clause 1 of this article, the tax agent unlawfully withheld the tax without taking into account this property tax deduction, the amount of tax withheld in excess after receipt of the application is subject to return to the taxpayer in the manner established by Article 231 of this Code. (Clause 4 introduced by Federal Law dated July 27, 2010 N 229-FZ)

To the list of all groups of articles Go to the topic “Important norms”

What documents are needed for registration?

List of documents required to obtain a property tax deduction for an apartment or house:

A certificate from the accounting department at the place of work on the amounts of accrued income and withheld taxes for the past year (form 2-NDFL).

Copies of documents confirming ownership of an apartment or residential building.

2.1. Acceptance certificate and/or state registration certificate.

Copies of documents confirming actual expenses for new construction or purchase of an apartment or house.

3.1. Copies of receipts, payment orders, checks. Copy of passport (page spread with photo and page page(s) with registration(s).

Bank account details where the money will be transferred. (It can be opened at any Sberbank branch completely free of charge.)

Additional list of documents for tax deduction from mortgages (mortgage interest):

A copy of the loan agreement.
Statement of repaid interest from the bank by year.
Statement of cash flow on the loan account.

How to calculate property tax deduction:

We take the cost of the apartment/house, if the contract price is more than 2,000,000 rubles (if the apartment was purchased before January 1, 2008, then 2,000,000 should be replaced by 1,000,000 rubles) and discard everything in excess of this amount.
We multiply the cost of the apartment by 0.13 (13%) and get the amount for which we can actually claim.
We order from the accounting department a certificate in form 2-NDFL for the past year and in the calculated taxes field we find the amount that we can receive now, if the amount is less than received in paragraph 2, then the balance is carried over to the next tax periods until the entire amount is paid to you in full.

Author: Anzhelika Anatolyevna Pechenkina, senior lecturer of the department of humanities, Omsk branch of the IFPA

Don't forget to follow us

You might be interested in:

The Federal Tax Service will search for deposits and determine income tax

Date of publication: 05/13/2015 14:32 (archive)

The Department of the Federal Tax Service of Russia for the Lipetsk Region informs that the Federal Law of November 29, 2014 N 382-FZ “On Amendments to Parts One and Two of the Tax Code of the Russian Federation”, from January 1, 2016, significantly changed the procedure for providing a property tax deduction when selling real estate. Article 217.1 “Features of exemption from taxation of income from the sale of real estate” has been added to the Tax Code of the Russian Federation. If previously income received from the sale of real estate that was owned for more than three years was exempt from taxation, then Article 217.1 introduces the concept of a “minimum maximum period for ownership of property,” which is three years only for real estate objects in respect of which at least one from the following conditions: 1) the right of ownership to an object of real estate was received by the taxpayer by inheritance or under a gift agreement from an individual recognized as a family member and (or) a close relative of this taxpayer in accordance with the Family Code of the Russian Federation; 2) ownership of the real estate property was acquired by the taxpayer as a result of privatization; 3) the right of ownership to an object of real estate was received by the taxpayer - the rent payer as a result of the transfer of property under a lifelong maintenance agreement with dependents. In all other cases, the minimum period of ownership of real estate is five years. Income received from the sale of property owned for a minimum period of ownership of the property is exempt from taxation.

Also, as of January 1, 2016, the rules relating to determining a taxpayer’s income from the sale of real estate are also undergoing changes.

Let us recall that now the basis for calculating personal income tax on the sale of real estate is the income received from the sale of real estate. At the same time, it is also possible to reduce this base through the use of a property tax deduction in the amount of 1,000,000 rubles. Thus, having indicated in the purchase and sale agreement the sale amount of 1,000,000 rubles. and by taking advantage of the deduction, taxpayers avoided the obligation to pay personal income tax.

Now the opportunity to indicate any value of the real estate being sold remains, but if the amount of income from the sale is less than the cadastral value of the property multiplied by a reduction factor of 0.7, then the tax will need to be paid on the cadastral value multiplied by the factor of 0.7. In case of failure to comply with this legal norm and understatement of the sale price of real estate, the tax authorities have the right to additionally charge the taxpayer with personal income tax. The property tax deduction does not change. You can use it in the amount of 1,000,000 rubles.

In general, the cadastral valuation of most objects has already been carried out, but if it turns out that in relation to the real estate object involved in the transaction, the cadastral value has not been determined as of January 1 of the year in which the state registration of the transfer of ownership is carried out, the provisions on cadastral value do not apply.

We remind you that from January 1, 2014, the procedure for obtaining property tax deductions for the construction or purchase of residential buildings, apartments, rooms or share(s) in them has changed. A taxpayer can use the right to receive a property tax deduction for several objects - if the cost of the acquired object is below the maximum amount of property deduction, i.e. 2,000,000 rubles, then it will be possible to “use” the remainder of the deduction for another object purchased later. Please note that this opportunity is provided only for objects purchased starting from 01/01/2014. This innovation has two features. The first is that the right to “additionally use” a property tax deduction arises only on the condition that the taxpayer did not use the property tax deduction before 2014. The second feature is that the maximum amount of property deduction is equal to the amount of property deduction valid on the date of its initial application. So, if a taxpayer first used a property deduction in 2014 in the amount of 1,000,000 rubles, and from 2021 the maximum amount of property deduction will increase from 2,000,000 rubles, let’s say, to 4,000,000 rubles, then when purchasing another property in 2021, the taxpayer retains the right to a property deduction in the amount of the balance of RUB 2,000,000, while this amount does not increase due to an increase in the maximum amount of property deduction.