Tax deduction when buying an apartment - changes 2015-2018

We recommend entrusting your tax refund to a personal consultant in the online personal income tax service.

Amount of property tax deduction

In accordance with the legislation of the Russian Federation, every taxpayer in the country has the right to a refund of 13% of the actual costs incurred to purchase housing.

Property tax deductions provided to individuals when purchasing housing include expenses for:

construction (purchase) of housing or part thereof, purchase of land for its further development;
payment of interest on a mortgage concluded for the purpose of acquiring (constructing) residential property or land plots;
repayment of interest accruals under loan agreements.

Art. 220 of the Tax Code of the Russian Federation is allowed to include in the total amount of costs the costs of repair, finishing and design work, the cost of consumables, the costs of connecting real estate to electricity, gas, and water supply networks. But in order to include additional expenses in the deduction amount, the purchase and sale agreement must indicate the need for them.

Tax deduction for purchasing an apartment in 2021: changes and clarifications

The tax deduction for real estate purchases changed significantly back in 2013. These changes came into force on January 1, 2014 and are also valid for the current year 2021. Namely: the tax deduction in 2021 is limited to 2,000,000 rubles, as it was from January 1, 2008, but from January 1, 2014, this limitation now applies not to the object of acquisition (house, apartment, room, land plot or share in them ), and the subject. That is, 2,000,000 rubles are now provided per person/taxpayer, while a deduction can be claimed for several objects of acquisition until their total value reaches 2,000,000 rubles. Until 2014, a deduction could be claimed only for one purchase item with a limit of 2,000,000 rubles, without the right to add a deduction for the next purchase, even if the price of the first was less than 2,000,000 rubles.

Example No. 1: an apartment was purchased for 500,000 rubles and a house for 1,700,000 rubles in 2012. Deduction, optionally, from only one acquisition item. In this case, it is more profitable to receive a deduction for the house than for the apartment.

Example No. 2: an apartment was purchased for 500,000 rubles and a house for 1,700,000 rubles in 2021. A deduction will be provided for both house and apartment in the amount of up to 2,000,000 rubles.

The deduction for mortgage interest is limited to RUB 3,000,000. Thus, if previously the taxpayer received 13% of all expenses for paying mortgage interest, now there is a limit beyond which a deduction will not be provided.

It is worth noting that these changes apply only to: those who did not receive a deduction for real estate, the right to a deduction for which arose before January 1, 2014.

Example: real estate was purchased for 500,000 rubles under a sales contract in 2013 and the ownership was also registered in 2013. In 2015, real estate was purchased for 1,700,000 rubles. If you applied for a deduction for your first property, then you exercised your right to a deduction under the old legislation (deduction from one property, regardless of the cost) and you can no longer receive a deduction for real estate in 2015.

that real estate for which the right to deduction arose after January 1, 2014.

Example: real estate was purchased in 2012 for 1,000,0000 rubles according to the DDU, the transfer acceptance certificate was signed in 2013, and the taxpayer applied for the deduction for the first time in 2021. When registering a deduction for this property, there will be no right to a deduction when purchasing the next one, since it is not the year of applying for the deduction that matters, but the year when the right to a tax deduction arose. In the described case, the right to deduction arose in the year of signing the transfer acceptance certificate.

Features of mortgage deduction

If the property was purchased on credit, the maximum deduction limit is 2 million rubles, and this does not take into account the amount that is used to pay off interest on the loan (you can get a separate deduction for this). That is, you first need to return the tax, which is associated with the very fact of acquiring real estate, and only then worry about the mortgage deduction.

It is important to collect copies of receipts and other payment documents related to loan repayments.

Tax deduction when purchasing an apartment in 2021. Amount of tax deduction when purchasing real estate

The amount of property deduction depends on a number of factors:

The refund is 13% of the value of the property under the contract, but not more than 260,000 rubles, if the right to deduction arose after January 1, 2014 (before 2014, the limit was 130,000 rubles).

Example No. 1: real estate costs 5,000,000 rubles. Deduction 260,000 rubles

Example No. 2: real estate costs 1,500,000 rubles. Deduction 195,000 rubles

Every year you can return no more than 13% of annual income, subject to personal income tax of 13% (subject to the limitation of the first point).

Example: salary for the year is 1,000,000 rubles. The price of the apartment is 1,500,000 rubles. Over the course of a year, you will be refunded 130,000 rubles (13% of your annual salary). Balance - you will need to register for the next year to receive the remaining amount.

Exception: deduction from dividends, although 13% of personal income tax is withheld from them, is impossible.

Tax deduction for mortgages in 2021

Features of applying the property deduction when purchasing real estate with a mortgage in 2021:

If the right to deduct on real estate arose after January 1, 2014, then the amount of deduction for mortgage interest is limited to 3,000,000 rubles.

If the right to deduct on real estate arose before January 1, 2014, then the amount of deduction for mortgage interest is not limited and amounts to 13% of these expenses.

Since the amount of the deduction directly depends on the amount of income received for the year, and more than the personal income tax withheld from income will not be returned, it makes sense to declare the deduction for a mortgage in the year the balance of the main property deduction is received. Collecting mortgage documents from the bank every year, which will take time, is pointless if your income does not even cover the basic property deduction. It’s simpler: in the year you receive the balance of the main deduction, collect documents from the bank from the start of lending to the end of the previous year and submit them all at once.

Example No. 1: income for 2021 is 1,500,000 rubles, personal income tax is 195,000 rubles. The cost of the apartment is 2,500,000 rubles (which means you can return 260,000 rubles of the main property deduction), and there is also a mortgage. In 2021, when claiming a deduction for 2021, only 195,000 rubles will be returned, so there is no point in indicating a mortgage deduction, since 195,000 rubles is only part of the main deduction and there is still a balance in the amount of 65,000 rubles, which can be returned to next year.

Example No. 2: income for 2021 is 2,500,000 rubles, personal income tax is 325,000 rubles. The cost of the apartment is 2,500,000 rubles (which means you can return 260,000 rubles of the main property deduction), and there is also a mortgage. It makes sense to claim the basic property deduction and the mortgage interest deduction in 2021 when filing for 2021.

Deduction: what is it and where does it come from?

To get a complete picture of deductions, it would not hurt to familiarize yourself with the second part of Article 220 of the Tax Code of the Russian Federation . The main idea of the deduction is to return to the real estate buyer part of the money paid for housing from budget funds generated through the collection of taxes. The monthly income tax, which the employer withholds for the employee and sends to the state treasury, is partially returned to the buyer-taxpayer after purchasing the property.

The deduction can also be issued by the seller, who, after selling the property, must pay income tax - he can also return part of the funds paid.

This measure allows the state to help citizens solve the housing problem and at the same time stimulate the real estate market.

Tax deduction when purchasing an apartment in 2021. At what point does the right to deduction arise?

Many believe that the right to deduction arises in the year of signing the purchase agreement, others - in the year of full payment under the agreement, and still others - in the year of full repayment of the mortgage. In fact, none of the described options is correct.

The right to a tax deduction arises:

in the year of signing the acceptance certificate, if you had an agreement on shared participation in construction, an agreement on the assignment of rights of claim to an agreement on shared participation in construction, a housing cooperative agreement.

List of documents for property deduction for DDU

in the year of entry into the register of rights to real estate. In other words, when you became the owner of the purchased property. This date is indicated in the Certificate of Ownership, in the extract from the Unified State Register, in the extract from the Unified State Register.

List of documents for property deduction under a purchase and sale agreement

Features of the law for the seller

When selling real estate, the seller faces a slightly different situation. If an apartment, house, room or share of living space, or a plot of land or dacha is sold, the maximum deduction you can count on is 1 million rubles , when it comes to other real estate (garages, outbuildings, etc.) - 250 thousand rubles .

It happens that property is confiscated from the owner due to state or municipal necessity. Then the compensation is equal to the redemption price of the plot of land and any property located on it.

For which years in 2021 can I get a property deduction when buying an apartment?

There are a number of signs you need to know about property deductions:

We determined the moment of emergence of the right above (see 1 paragraph above). Now you need to know when the right to a deduction disappears: the right to a property deduction never disappears. Even if the property was purchased in 2003, and you apply for the deduction only in 2021, you still have the right to it (subject to the restrictions in force in 2003, that is, at the time the right arose).

The deduction can be issued from the year in which the right to a property deduction arose. For the years preceding the year the right arose, a deduction is not possible (with the exception of pensioners. They can apply for a deduction on the income of the past 4 years: in 2021, they can apply for a deduction on income from 2014-2017, if the right to a deduction arose before January 1, 2021) .

Example No. 1: Real estate was purchased under a contract of agreement concluded in 2013. The transfer and acceptance certificate was signed in 2021. The deduction is issued for 2021.

Example No. 2: Under a purchase and sale agreement concluded in 2021, real estate was purchased. Property from 2021. Property deduction in 2021 is issued for 2021 and 2021

A property tax deduction in 2021 can be issued for income in 2015, 2021, 2017 (for pensioners - also 2014). If the entire deduction is not received, you can continue to apply annually.

Example: Real estate was purchased under a purchase and sale agreement concluded in 2007. Property from 2007. The taxpayer applied for a deduction in 2021 - a deduction for income 2015-2017. The right to deduction for income 2007-2014 has already been lost, but the right to deduction has not been lost.

It's important not to be late

There is not always time to tinker with documents, but it is still important not to overstay the period for applying for a deduction. If you decide to receive compensation directly from the tax authority, the return can be submitted at any time in the year following the year of acquisition. For example, if it is 2017, it is not too late to contact the tax authorities even in mid-December 2018.

It is important to consider that tax refunds are only possible for the last three years. So, if a person who bought real estate in 2015 did not immediately file a declaration and then decides to do so in 2019, the deduction will only be for 2016, 2017 and 2018. Unfortunately, in this case, 2015 is already irretrievably lost for applying for benefits.

If you plan to receive a deduction directly from the employer (monthly), you can contact him with a corresponding application and present the received tax notice. After which the accountant will begin to calculate wages in a new way from the month when this document was presented to the employer. In this case, the tax paid by the employer since the beginning of the year is refunded.

What is a property deduction for mortgage interest?

The maximum amount that a property deduction can have

A citizen who bought real estate with a mortgage is obliged to pay, in addition to the principal debt for the apartment, a certain amount to the bank every month. Over the entire payment period, a certain amount of repaid debt accumulates. The borrower has the right to repay at a time 13% of the amount for mortgage interest, but not more than three hundred ninety thousand rubles.

This feature applies to loans issued after 2014. A citizen can receive a mortgage interest deduction once in his life.

conclusions

So, getting a property deduction is not that difficult even with minimal knowledge of taxation. To begin, simply wait until the end of the calendar year in which the real estate transaction was made, and then contact the tax office at any time.

There is no need to open special accounts or cards - the money will be transferred using the specified valid details.

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Last modified: 11/07/2018

The article was posted by Real Estate LLC.

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Deadlines for applying for a tax deduction in 2021 and the deadline for refunding funds

You can apply for the deduction at any time during 2021. If you submit it to the tax office in person, pay attention to the office hours.

The deadline is until April 30, 2021 only for those who, in addition to wanting to claim a property deduction, are required to report income from which personal income tax is not withheld (for example, the sale of a car whose ownership period was less than 3 years).

It is necessary to fill out the 3-NDFL declaration for property deduction, attach a set of documents confirming the right to deduction, and submit it to the tax office at the place of registration.

After delivery, a desk audit takes place within 3 months. If the decision based on the results of the desk audit is positive, then after another 1 month the money will be transferred to your account if you submitted an application for a personal income tax refund along with the declaration (if you submitted the application after the audit, then 1 month is counted from the date on which the application was submitted).

Tax Receipt Options

If you want to receive a refund at once of the entire amount due (paid in the form of taxes for the previous year), this must be indicated at the tax office, and after the end of the year for which the deduction is claimed, the tax will be returned. If you plan to file a return annually, you should immediately take care of obtaining a deduction so as not to have to contact the tax authorities additionally.

The most convenient way to interact with tax authorities is through your personal account on the official website of the Federal Tax Service. This will allow you to easily track in the future the stage at which the application is being considered. On the same resource you can make all accrued payments to the budget.

The second option is to receive benefits from the employer, who simply will no longer withhold tax according to the previous rules, which means that the salary will be slightly higher. This is not the most tangible increase, and, of course, you won’t be able to get rich from it. Therefore, financial consultants recommend that those who want to buy something significant and do not know how to save, file a refund for the entire amount with the inspectorate and, accordingly, enable the employer to pay the tax in full.

If, nevertheless, it seems more convenient to receive an increased monthly remuneration, it is necessary to obtain a special certificate from the tax authorities for the employer, which will serve as the basis for providing a deduction in the current year. After the end of the specified tax period (calendar year), you will have to receive a notification again.

IMPORTANT!

Income tax, which can be determined to be refunded, can be calculated both on income received at a permanent place of work, and on amounts that are withheld in accordance with private, civil contracts.

In any case, it is important to have documents that confirm the costs of purchasing real estate, as well as registered ownership.