The content of the article
- When can I get a property deduction
- Who can get a tax deduction
- Deduction amount in 2019
- Methods and procedure for obtaining
- Through the tax office
- Through employer
- List of required documents
- Tax deduction period
Some Russians do not know what the tax deduction is when buying an apartment. This ignorance is fraught with the fact that citizens do not even suspect their authority to return a decent amount of money spent on the acquisition. If you are planning a serious transaction, be sure to ask how to get a tax deduction when buying an apartment. The subtleties and nuances of this process are discussed further in the article..
When can I get a property deduction
Each law-abiding resident of the Russian Federation is required to pay personal income tax (PIT). With wages, he is completely withheld automatically. However, there are situations in which the state can give part of the previously paid funds with a tax deduction. This amount reduces the income of a person subject to tax.
It is allowed to refund the tax deduction when buying an apartment either in a mortgage or for personal money, the acquisition of an object in an unfinished new building. In addition, it is permissible to include in the amount expenses for the purchase of finishing material and payment for the work of repairmen. However, the latter fact is possible only when the purchase agreement says that the object was bought unfinished or there is no finish.
Who can get a tax deduction
By law, the tax on the purchase of an apartment can be returned:
- Residents of the Russian Federation who have not left the country for six months and went to work.
- To officially employed payers of personal income tax.
- Working retirees or those who retired less than three years ago.
- Minor children who are also full or partial owners. Money will get his parents. When a child grows up, he will be entitled to issue another return personally.
Deduction amount in 2019
In fact, to date, the latest changes in this area were made in 2014. According to them, the maximum deduction is 2 million rubles. The maximum savings in this case is 2,000,000 x 13% = 260,000 p. The payment cannot be more than the amount that the person actually paid to the budget. If he transferred less than 260 thousand rubles, he won’t receive a full refund..
Starting from 2014, a deduction can be applied to several purchases of real estate, until it reaches the limit of two million. That is, a person has the right to purchase several objects cheaper, for example, an apartment for one and a half million rubles and a cottage for half a million, and a certain period of time may elapse between transactions. If the value of the object exceeds two million, a citizen will not receive more than 260 thousand. Since 2015, each homeowner has the right to take his own limit, the amount is not divided by all.
Examples of how to calculate a tax deduction:
- For a loan facility. Property deduction when buying an apartment in a mortgage contains two components. The first is the purchase amount (2 million rubles maximum), the second is the amount of interest accrued on the loan (limit – 3 million rubles). The payout calculation scheme looks like this: 2,000,000 x 13% = 260,000 p. (of the cost of housing), 3,000,000 x 13% = 390000 p. (from percent). 260000 + 390000 = 650,000 p. Mortgage interest is deducted for only one property. Subsequent will have to pay in the usual way.
- If the living space is acquired in joint ownership, for example, by a husband and wife, then everyone has the right to two million rubles of deduction. So are things with a lot of equal owners.
- In case of shared purchase of housing, the amount is calculated in proportion to the share of each participant. Let’s say the apartment is estimated at 4 million rubles. the share of wife is 70%, husband – 30%. The calculation will be made for each shareholder: 260,000 x 70% = 182,000 p. (for spouse) and 260,000 x 30% = 78,000 p. (for spouse).
Methods and procedure for obtaining
The provision is carried out in the following ways:
- The whole amount immediately to the inspection of the Federal Tax Service (IFTS). You should apply at the beginning of the future tax period with a declaration for the previous one. Money that was deducted from a person last year will be returned to him.
- There is another option for how to get a tax deduction when buying a new apartment – from the employer. He will cease to withhold tax in the remaining months of the year. As soon as the documents for the tax deduction for the purchase of an apartment are accepted and considered, the person’s salary will increase by 13%.
Through the tax office
The order of receipt at the IFTS:
- First, a person gets ownership.
- Then he needs to collect a list of securities and send them to the IFTS. This can be done both personally and by mail..
- The case will be considered for three months, and then a notification of a positive or negative decision will be sent to the applicant.
- If the Federal Tax Service Inspectorate gives the go-ahead, the citizen draws up an application, writes the number of his account in it, and after 30 days the money goes there.
The procedure for receiving at the place of work:
- Go to the Federal Tax Service Inspectorate, request to notify your employer that money should be returned to you.
- Prepare documents.
- Provide the received notice and other papers to the employer.
- Write a statement, and from next month, your income tax will no longer be taken from your salary.
List of required documents
To start the registration process, contact the IFTS with the following papers:
- declaration of 3-personal income tax;
- passport or other identification card and copies;
- certificate of income 2-PIT;
- application for money transfer with bank details;
- certificate of state registration of property rights;
- receipt of payment for real estate;
- purchase or equity agreement;
- an act of receiving and transmitting an object.
An additional list of documents for the tax deduction for an apartment on a mortgage:
- agreement with a banking organization;
- certificate of annual interest.
If a married couple takes an apartment together, then the following documents must be submitted:
- application for shared distribution;
- document confirming the state of the couple in marriage.
To collect money for a minor child, you need to apply with the following documents:
- children’s birth certificate;
- a statement of shared distribution, where both mother and father are indicated.
Tax deduction period
It depends on the chosen way of obtaining:
- Via IFTS. The term for consideration of documents is 90 days. Then, a notification of decision is sent to the citizen within 10 days. Having received it, he goes to the IFTS with a statement on the transfer of the amount to his bank account. Money for the entire previous reporting period (maximum 12 months of the past year) will be received in the bank after 30 days in one amount.
- Through the employer. Documents are reviewed within a month and a tax refund notification is sent to work from the Federal Tax Service. The next salary after receiving the notification will be transferred without tax deduction. This will continue until the end of the year. This method is convenient to choose for those who purchased housing in late autumn or winter. So he will receive a large amount of money relatively quickly.
There is no concept of a limitation period for a refund, but the money will be transferred only for three years, even if you bought a living space much earlier. However, you can pick up 13% of the cost of just one apartment if you have been an owner for a long time. If you got housing after the onset of 2014, then you can return your limit again until you have completely exhausted it. Not the fact that this will be one apartment. You probably want to buy some cheap properties over time..
Learn also what lump sum payment to pensioners is..
To summarize all the above information and draw general conclusions for yourself, watch the next video. It briefly and clearly explains how to get a tax deduction when buying a new apartment. After watching the video below, you will be aware of what rights are granted when buying a house, where you should apply and under what conditions they will be given money back. Do not neglect your ability to receive the funds that are legally due to you..