How to get a tax deduction when buying an apartment in 2021?

• Tax deduction when buying an apartment with a mortgage 2018
• Tax deduction for purchasing an apartment in 2021: changes and clarifications
• Tax deduction when purchasing an apartment in 2021. Amount of tax deduction when purchasing real estate
• Tax deduction for mortgages in 2021
• Tax deduction when purchasing an apartment in 2021. At what point does the right to deduction arise?
• For which years in 2021 can I get a property deduction when buying an apartment?
• What is a property deduction for mortgage interest?
• Deadlines for applying for a tax deduction in 2021 and the deadline for refunding funds

What is a property tax deduction?

A citizen of the Russian Federation who is officially employed must pay a 13% tax on all income. The state gives the right to return part of the income tax paid by covering the costs of purchasing real estate, in accordance with Article 220 of the Tax Code of the Russian Federation.

Property tax can be refunded on expenses for:

1. Acquisition of any living space in an apartment or room, including shares in them. This also includes materials and work for finishing the premises (if the apartment was sold without finishing);
2. Construction or acquisition of land for the purpose of building a house (share in it), i.e. purchased under individual housing construction. Vessels include: estimates, purchase of materials, construction work and costs for supplying electricity, sewerage, water and gas supplies.
3. Repayment of interest on a mortgage loan from a bank or loans from an LLC, individual entrepreneur.

Redevelopment of the premises, purchase of plumbing fixtures, and transaction costs are not taken into account when calculating the tax deduction.

Who is eligible and can receive a tax deduction?

Basic conditions for approval of a tax deduction:

• presence of Russian citizenship;
• availability of income that is subject to 13% personal income tax (for individual entrepreneurs who pay at a different rate, no deduction is provided);
• residential real estate purchased with your own funds or with a loan;

Important ! The transaction should not include budgetary funds from the state, as well as maternity capital.

• a pensioner who, in addition to a pension, receives income (from renting out an apartment) and pays 13% tax;
• a citizen who bought housing for a minor child, but receives income from which he pays 13% personal income tax;
• a close relative should not participate on the part of the seller; the entire list is specified in Art. 105.1 Tax Code of the Russian Federation. The exception is when the seller is one of the spouse’s parents (for example, on the husband’s side), the other spouse (wife) can receive a property deduction.

Tax deductions for the purchase of property can be used by:

1. Who pays interest on a loan or targeted loans taken and spent on the purchase or construction of residential property, as well as for on-lending. Here you need to stock up on documents proving the transaction and expenses. The package of documents must include bank statements proving payment of interest.
2. When buying a plot to build a house, remember that you will rightfully receive a property deduction only after it is built. But this is not enough; registration with Rosreestr must be completed. After this, you need to contact the Federal Tax Service with a package of documents.
3. The purchased living space (share) in an apartment building during the construction period confirms the right to apply the deduction with documents: a transfer deed and proof of what and to what extent funds are involved.

Who can receive personal income tax deductions?

Those citizens who:

• recognized as tax residents in Russia;
• receive income on which they pay monthly tax at a flat rate of 13%.

Important: to receive a refund on the duty paid, both of these conditions must be met.

There are categories of citizens who cannot count on receiving a tax deduction due to the lack of taxable income. These include:

• unemployed whose main source of income is state benefits;
• private entrepreneurs who are under a special tax regime and do not have income subject to personal income tax.

Please note that citizens working unofficially also cannot count on receiving a deduction. This happens because the employer does not make deductions from their wages to the tax office.

If you need to file a tax deduction, the deadline for filing a return is not tied to a specific date. You can submit an application to the tax office at any time, but only after the tax period. That is, to receive a deduction for 2021, the application must be submitted in 2018.

Important: you can apply for a deduction only for the previous 3 periods up to the year in which the deduction declaration was issued. That is, if you bought a home in 2013, and decided to receive a deduction in 2018, then only 2021, 2016, 2015 will be refundable.

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How much can you get

Article 220 of the Tax Code of the Russian Federation indicates how much the deduction can be when residential space is acquired. These are actual expenses not exceeding 2 million rubles. If the transaction took place after 01/01/2014, not one object, but several may participate in this amount until the established limit (2 million rubles) is exhausted. By simple calculation (13% of the limit), we find that you can return no more than 260 thousand rubles of tax paid to your wallet from the budget.

For expenses on construction and purchase of housing and land, when paying interest on targeted loans (mortgages) or loans, the maximum amount will be 3 million rubles.

The period when the buyer’s right to deduct arose is considered to be the year in which the housing was registered (date in the Unified State Register of Real Estate).

The deadlines for applying for the purpose of exercising one’s property rights and demanding the return of overpaid taxes to the budget are not contained in legislative acts. However, according to paragraph 7 of Article 78 of the Tax Code, there is a rule for filing applications for credit and return of such amounts. The term for it is three years from the date of payment. Therefore, the tax service also adheres to the position regarding the deduction. That is, personal income tax can be returned in respect of those incomes that were received no earlier than three years preceding the application.

It happens that housing was purchased in a year when a person did not have an official salary, taxed at 13%. Then you can submit documents for deductions later, with the appearance of income. There is no time limit here.

Let's look at an example. The apartment was purchased by citizen M. in March 2021. She wants the personal income tax withheld from her salary and paid to the budget in 2021 to be returned to her. She can submit documents and an application in the prescribed form during 2019-2021.

When you are denied a deduction when buying a home

1. The purchase of housing was made at the expense of maternal (family) capital, military mortgage or other budget funds;
2. The purchase and sale transaction was concluded with relatives, wife (husband), etc. (Article 105.1 of the Tax Code of the Russian Federation).

Is it possible to get a tax deduction when buying an apartment from relatives?

Training expenses

Deductions are provided for expenses on education for yourself (in universities, driving schools, etc.), as well as for brothers and sisters (if they are not more than 24 years old).
The deduction amount is limited. The limit is 120,000 rubles. together with treatment costs. Also, a deduction is provided for expenses for full-time education of children (in universities, kindergartens, etc.) under 24 years of age. Limit - 50,000 rubles. for each child. An educational institution must have a license for educational activities. What documents will be required:

• Training agreement (if concluded) – copy;
• Documents confirming payment for training (receipts, payment orders) - a copy;
• A document confirming the degree of relationship and age of the student (birth certificate) - a copy;
• Document confirming guardianship - a copy;
• A document confirming full-time study (for example, a certificate from an educational institution) - a copy.

If a contract for a child’s education was signed by one spouse who does not have income subject to personal income tax, then the other spouse can receive a deduction, because Tuition fees are paid from the family's common property.

Documents for deduction

Let's figure out what documents are needed to get a tax deduction back when buying an apartment:

• ID card (passport) and TIN;
• contract of sale or other than to prove the acquisition;
• extract from the Unified State Register or certificate;
• documents according to which the funds were paid, as well as construction costs were proven;
• a loan agreement concluded with a bank and a certificate issued in the bank’s form regarding the interest paid;
• If it is more convenient to receive a deduction through the Federal Tax Service, then you will need a certificate of income received, Form 2-NDFL, which is issued by the employer’s accounting department.

In addition to copies of documents, you must take the originals with you for verification by tax officials. You can find more information about the complete list of documents for the tax office in this article.

The exact list should be clarified with your territorial body of the Federal Tax Service.

Expenses for treatment and purchase of medicines

Deductions are presented in relation to:

• expenses for medical services of Russian medical organizations and individual entrepreneurs operating on the basis of a license,
• expenses for purchasing prescription drugs.

A deduction can be obtained for expenses for treatment and medications for yourself, a spouse, parents, and children under the age of 18.
Unfortunately, it is impossible to receive a deduction for the expenses for the grandmother’s treatment. The amount of deduction for expenses for treatment and medicines together with the deduction for expenses for education cannot exceed 120,000 rubles. However, there is a list of types of expensive treatment, the costs of which can be included in the deduction amount without limitation.

The list of medical services, medications and expensive treatments was approved by Decree of the Government of the Russian Federation of March 19, 2001 N 201. The list of medications, in particular, includes aspirin, iodine, and levothyroxine. The list of expensive treatments includes implantation of dentures (including dental ones), infertility treatment, treatment of malignant tumors, surgical treatment of severe forms of diseases, etc.

What documents will be required:

1) for deduction of expenses for medical services, expensive types of treatment:

• Treatment agreement – ​​copy;
• Certificate of payment for medical services for submission to the tax authorities - original;
• A document confirming the degree of relationship (for example, a birth certificate) - a copy (if payment was made for children, parents, brothers, sisters);
• Document confirming marriage (marriage certificate) - a copy (if payment was made for a spouse).

2) for deductions for the purchase of medicines:

• Prescription form with the stamp “For the tax authorities of the Russian Federation, Taxpayer INN”, issued by a doctor - original;
• Documents confirming payment for medicines (for example, a cash register receipt) - a copy;
• A document confirming the degree of relationship (for example, a birth certificate) - a copy (if payment was made for children, parents, brothers, sisters);
• Document confirming marriage (marriage certificate) - a copy (if payment was made for a spouse).

The list of documents is given in the letter of the Federal Tax Service of Russia dated November 22, 2012 N ED-4-3/ [email protected]

Tax deduction when buying an apartment with a mortgage

The most common way to buy a home is through a mortgage loan. Interest may also be eligible for a tax deduction.

These are the costs of their actual payment under the banking agreement, not exceeding 3,000,000 rubles.

There are only two conditions here:

• residential space was purchased with borrowed funds in Russia,
• the funds were used for their intended purpose (a transaction was completed to purchase an apartment, house, land was spent on construction).

Process of receiving a deduction

After collecting all the documents that can be used to obtain a tax deduction, you should choose the method of receipt:

Through the tax authority

A property deduction can only be obtained after the end of the year in which the right arose.

1. Fill out and submit a declaration in form 3-NDFL - read the instructions.

2. We receive a certificate in form 2-NDFL from the accounting department at the place of work for the year.

3. Make copies of documents confirming the right to an apartment or house:

4. Make copies of documents confirming expenses when purchasing an apartment (bank statements, receipts). In case of a loan, prepare a certificate from the bank about the interest paid.

5. If the apartment was purchased in common joint ownership, then a copy of the marriage certificate and an agreement on the distribution of property deductions between the spouses will be required.

6. Simultaneously with the 3-NDFL declaration, a package of documents and an application to confirm the right to a property tax deduction are submitted - and a sample to fill out.

Through the employer

In this case, they apply if you need to receive a tax deduction in the same year that you bought your home.

1. To do this, you need to receive a notification from the tax service, which is given to the employer.
2. Provide a package of documents with a written application in person or through the electronic service of the Federal Tax Service “Payer’s Personal Account”.
3. After 30 days, receive a notification from the tax office.
4. Then submit it to work with a free-form application, and the accounting department will not deduct personal income tax from your salary.

Cases of receiving the entire tax amount (260 thousand rubles) in one year are very rare, therefore, the balance of the property deduction is transferred to subsequent periods (clause 2, clause 1, article 220 of the Tax Code of the Russian Federation). To continue to use it, you will need to receive a notification from the tax authority again and provide it to the employer.

The deadline for submission is not specified separately, but there is a general rule for filing declarations - before April 30 of the year that follows the year of receipt of income and the emergence of the right to deduction.

There are several ways to submit a declaration, choose the most convenient for yourself:

• personally or through a representative,
• by post,
• through electronic services (gosusiugi.ru or the Federal Tax Service website).

The submitted documents are subject to verification by the tax authority, for which a period of 4 months is allotted. After this period, he sends the taxpayer a message about a positive decision or refusal.

If a positive decision is made, you should contact the tax authority again with an application and indicate the account details for transferring the tax deduction. Within a month they will be credited to the specified account. Such a statement can be attached to the package of documents submitted with the declaration. In this case, you should wait for the desk audit, the deadline for crediting the amount to check the account.

Types of personal income tax deductions in 2021

Individuals can apply for the right to tax deduction of three types:

1. Standard tax deductions. These deductions are available to citizens with children. They are provided until the total annual income reaches 350 thousand.
2. Social tax deductions.

They are based on costs:

• for charitable purposes;
• for your own education or your children’s education;
• for the purchase of medicines or treatment;
• for non-state pension provision, pension insurance on a voluntary basis and life insurance on a voluntary basis;
• for the funded part of the pension.

They can be obtained after submitting your personal income tax return to the tax office at the end of the year. The taxpayer will need to provide a full package of necessary documents. It is presented on the official website of the tax authority.

1. Property.

The payer who has performed the following actions with his property has the right to receive a refund:

• sale;
• purchase;
• home construction;
• acquisition of land for construction.

The procedure for providing these deductions is established in the Tax Code. This issue is regulated by Article 220.