Property deduction for personal income tax when purchasing housing: who receives it and when?

2021 has ended, annual reporting is coming to an end and it’s time to think about personal finances.

As we wrote earlier (here and here), using tax deductions, you can return up to 100% of the personal income tax paid for the year from the budget. How much personal income tax did you pay for 2021? How much did you spend in 2021 on improving your living conditions, paying mortgage interest, on education, on treatment, on purchasing medications? But all these expenses make it possible to reduce the tax base on which personal income tax is calculated at a rate of 13%.

If during 2021 you did not apply to your employer for deductions (social and/or property), then you should think about submitting a 3-NDFL tax return to the tax authority now.

There is no specific deadline for submitting the declaration to receive the deduction. The main thing is to have time to exercise your right within 3 years before the statute of limitations expires. That is, in 2021 you can submit declarations and receive deductions for expenses incurred in 2021, 2016, 2015.

If for 2021 you have personal income tax to pay additionally to the budget, and the tax agent did not send a message to the tax authority that the tax on the income paid to you was not withheld, then you should submit the 3-NDFL declaration to the tax authority no later than 30 April 2021. This situation, in particular, may arise if you sell property or rent out an apartment.

The website of the Federal Tax Service of the Russian Federation contains a video detailing the process of filling out a tax return using the “Declaration” program.

In the article we will look at some of the nuances of receiving deductions, and more detailed information about deductions can be read on the Personal Income Tax blog.

What is a tax deduction?

A tax deduction is an amount of money that reduces the amount of income on which 13% income tax is paid, the so-called tax base. In addition, with the help of a tax deduction in certain cases, you can return part of the tax paid to the budget. Which option to use depends on the type of deduction applied.

Any taxpayer receiving wages or other income is required to remit personal income tax (PIT), or income tax as it is also called, to the state budget, which amounts to 13% of the amount of income. As a rule, tax calculation, withholding and transfer is carried out by the employer. The amount of income tax can be reduced; this right is established in the Tax Code of the Russian Federation and is called a tax deduction , which has various types and features of application.

Accrual terms

From 2021 to 2021, new periods for deduction of income tax to the state budget began to operate.

The table illustrates this information:

Who can claim a tax deduction

All citizens of the Russian Federation who receive an official salary, from which 13% tax is paid to the state budget, can take advantage of the tax deduction. In addition to citizens of the Russian Federation, other individuals who are residents and non-residents of the Russian Federation can also take advantage of the right to deduction:

1. Residents of the Russian Federation - present on the territory of the state for at least 183 calendar days in 12 months;
2. Non-residents of the Russian Federation receiving income from sources located on the territory of the Russian Federation.

Those individuals who do not have income tax withheld from their income are not entitled to claim a tax deduction; these include unemployed citizens of the Russian Federation, pensioners without an official place of work, as well as non-residents of the Russian Federation who do not have a source of income in the country.

Types of tax deductions and their features

Tax deductions are divided into the following types:

1. Standard deductions are provided for the citizen himself and his children;
2. Social deductions related to the treatment and education of the taxpayer, as well as his children and other close family members. In addition, from 2021, this group of deductions includes amounts sent to charity, voluntary insurance and qualification assessment;
3. Investment deductions - for transactions carried out with securities.
4. Property deductions applied when purchasing residential real estate, both using personal savings and a mortgage loan, and when concluding an agreement for shared participation in housing construction;

To use any tax deductions, mandatory documentary evidence of the right to receive them is required. Only if you have supporting documents can you claim a tax deduction, and each type of deduction has its own specific package of documents. For example, for all expenses incurred for which you plan to receive a deduction, you must have the appropriate expense documents - receipts, bills, receipts, checks, and for standard and social deductions - documents not only for yourself, but also for your children.

It is also necessary to take into account that there are limits above which tax deductions are not provided to citizens. For different types of deductions, the size of the limit has an individual value, which can be used either for a specific calendar year or for the entire period of application of the tax deduction.

In addition, deductions have characteristics related to the period of its use: some of them can be transferred to the next period, others of them are provided only for a specific calendar year.

Compensation for children

People raising children and contributing funds to the state budget have a preference for receiving a refund of part of their finances. This applies to children under 18 years of age, and in case of continuing education, payments are made until 24 years of age.

The amount of the transferred amounts is determined by which child the payment is due on the account, as well as the state of his health:

• for the 1st and 2nd 1400 rubles each;
• on the 3rd and subsequent 3 thousand;
• for parents of a disabled child – 12 thousand;
• for guardians of a disabled person – 6000.

There is no trace of the dependence of the prerogative to transfer compensation to the second child if the first does not receive it. For example, Khovanskaya E.M. two children.

She works at a poultry farm. This year I decided to apply for a tax refund for children. Since the eldest son is already 18 years old, and he already works and does not study, the effect does not apply to him. The youngest 6-year-old son is entitled to receive 1,400 rubles.

IMPORTANT !!! Refunds are made monthly until the income reaches the limit of 350 thousand. The following year, it is allowed to submit a petition again and receive the amounts. To do this, it is necessary to provide a duplicate of the child’s birth or adoption certificate to the accounting department.

When registering, you may encounter such nuances as:

1. If the parents divorce and one of them lives separately from the child, it is possible to claim a refund only with proof of participation in the financial support of the children. The Klyuchnikov couple broke up two years ago. The father left the family and did not help in any way in supporting the two children. While working at a car repair shop, he learned from a co-worker that he could get tax deductions for children. Arriving at the inspection, he wrote a statement, but could not provide documentary evidence of his participation in raising children.
2. A single mother or father has the right to receive double compensation. This happens if the second parent is deceased, declared absent, or deprived of rights. However, it is worth considering that the preference is canceled upon new entry into a marriage union. A young widow with three children in her arms worked as a seamstress and received legally established returns on fees. After getting married, she lost her preference to receive double the amount.
3. When a child is studying, a certificate from the educational institution is provided annually. A man working at a sugar factory as an equipment adjuster annually applied for compensation for his student’s son. However, this year he will not be able to do this, since the boy was expelled from school for absenteeism.
4. Marriage of children is considered grounds for termination of accrual. Smirnova works as a lawyer and consultant in the company. In September, she began receiving compensation for her daughter studying at the university. The girl got married in November. The next reporting period, the employee again provided a certificate to the accounting department about the fact that her daughter was studying. However, the surname was already different. She was denied credit.

How to get a tax deduction?

If a citizen claims any deduction, he can use one of two options:

1. Receive a deduction through your employer:

To do this, you need to write an application to the accounting department and submit the relevant documents that will indicate that the person really has the right to receive a personal income tax deduction;

1. Receive a deduction from the tax authorities:

In such a situation, the taxpayer independently applies to the tax office with an application for a tax deduction. In this case, the appropriate package of documents is provided and the 3-NDFL declaration form is filled out.

The declaration is checked by tax inspectors within three months, after which a decision is made on the legality of the taxpayer’s use of his right to a tax deduction.

Property deductions for personal income tax in 2018

The amount of property deduction in 2021 remains unchanged and is equal to:

- the cost of purchased housing, the price of which is less than 2 million rubles;

— 260 thousand rubles, if the purchased residential property is more than 2 million rubles.

The limitation on the maximum deduction amount - no more than 2,000,000 rubles - is defined in the Tax Code of the Russian Federation (clause 1, clause 3, article 220).

Example 1

You purchased an apartment for 1900 thousand rubles.

The property deduction will be: 1900 x 13% = 247 (thousand rubles).

Example 2

You bought a house for 4,300 thousand rubles.

The deduction amount will be calculated with the maximum possible, i.e. from 2 million, since the price of your house exceeds it.

You can receive a deduction in the amount of 260 thousand rubles: 2,000,000 x 13%.

Example 3

The cost of the purchased apartment in a new building is 1,400 thousand rubles. You spent 700 thousand rubles on repairs, which you can document.

Total expenses: 1400 + 700 = 2100 (thousand rubles).

Possible deduction amount: 2,000,000 x 13% = 260 (thousand rubles).

Legislation on tax deductions

All information regarding tax deductions is contained in Chapter 24, Part 2 of the Tax Code of the Russian Federation “Tax on personal income”. Each type of deduction has its own article, including:

• for standard - Art. 218;
• for social - art. 219;
• for investment - Art. 219.1;
• for property - art. 220.

Each article describes in detail what exactly a certain deduction is, what limits there are on it, as well as its features.

As for the procedure for filling out a declaration in form 3-NDFL for submitting it to the tax office, it is regulated by the Order of the Federal Tax Service of the Russian Federation “On approval of the personal income tax return form” dated December 24, 2014 No. ММВ-7-11 / [email protected] B The order reflects detailed information on how to calculate the taxable base and how to apply this or that tax deduction to it.

Filling out the Z-NDFL declaration

For each calendar year, only one initial declaration is submitted to the tax service, and if necessary, a clarifying or corrective declaration can be provided. If a taxpayer has the right to use two or more deductions, then he must reflect them in one general declaration, where the deductions will be summed up and used in calculating the tax base in accordance with the individual characteristics and features of each of them.

For each tax deduction there is a specific section or sheet of the declaration, which reflects information only on it. If the taxpayer does not have any deduction, then the page is not filled out. In addition, when the declaration is completed and submitted to the tax office, it must reflect all tax deductions, including those provided through the employer.

To prepare and fill out the declaration, a special program is used, developed by specialists of the Federal Tax Service of Russia. General information about the taxpayer, his salary for the year is entered into it, and separate tabs of the program are filled in to enter information about the tax deductions provided. They contain sections on specific types of deductions - standard, social, property, investment, professional, as well as information on losses. All entered data is then displayed in a printed declaration form on the appropriate pages, and to confirm the legality of receiving deductions, the specified data must be supplemented with an appropriate package of supporting documents.

Codes

Starting this year, in personal income tax certificates No. 2, the digital values ​​​​on the basis for calculating compensation are changing.

These symbols are presented and displayed below:

Tax deductions: types, characteristics, features, filling out the 3-NDFL declaration

For a clear understanding of what a certain tax deduction is and how exactly it can be used, let’s consider each specific type in more detail.

Standard tax deductions

The list of standard tax deductions includes both citizens who took part in the liquidation of the consequences of the Chernobyl nuclear power plant and disabled people of the Great Patriotic War. This deduction is often provided for a child, and if there are several children, the deduction will be increased.

Detailed information on standard tax deductions.

Social tax deductions

Social tax deductions include deductions for education, charity, expensive treatment, life and health insurance, and the purchase of medicines. This type of deduction allows a citizen to return up to 13% of the amount spent. It is imperative to take into account that it is possible to return part of the funds not only for expenses on your own health, but also the amounts spent on the treatment of close relatives, parents and children allow you to take advantage of a social deduction.

Detailed information on social tax deductions.

Investment deductions

Investment tax deductions were introduced relatively recently and are recognized to improve the investment climate in Russia. This deduction can be used by investors and holders of securities; the deduction can be provided through a tax agent (employer) remitting taxes or when submitting a tax return.

Insurance

As for insurance payments, they are divided into four categories:

• pensions,
• medical,
• social,
• from accidents.

As before, control over the payment of insurance is entrusted to the tax authorities. Accident insurance is covered by the social insurance system.

When paying this “four”, legislators determined a threshold - the total amount of payments should not exceed 30% of the salary.

The general scheme of insurance payments is as follows:

Please pay attention to the established payment limits. For the Pension Fund, this results in a limit of 3 million 981 thousand 818 rubles. This is another 22%, more - already 10%.

Program for filling out the 3-NDFL declaration for 2021

Dear readers, the program is used to fill out the 3-NDFL and 4-NDFL declarations on the income of individuals. Each year has its own version. You can download the required version and get additional information on it on the official website of the Federal Tax Service in a special section. Only in this case can you be sure that the program is official and does not contain malicious code. In this section, you can download the program for filling out the declaration for 2021, 2021, 2015 and 2014.