Sample and example of filling out Appendix 7 of the 3-NDFL declaration for property deduction

Who makes the calculations and why in appendices No. 6 and No. 7 of form 3-NDFL

Appendices No. 6 and No. 7 in 3-NDFL are filled out by individual taxpayers who:

• are tax residents of the Russian Federation;
• carried out an operation (operations) with real estate, which gives them the right to a tax deduction in the reporting year in accordance with Art. 220 Tax Code of the Russian Federation.

However, at the same time:

• Appendix 7 calculates the deduction associated with the purchase of property specified in subparagraph. 3 and 4 clauses 1 art. 220 Tax Code of the Russian Federation;
• Annex 6 reflects the formation of a deduction associated with the sale of property named in subparagraph. 2 p. 2 art. 220 Tax Code of the Russian Federation.

In this material we will look at the procedure for forming Appendix 7, which is filled out in the following cases:

• if the personal income tax payer purchased residential real estate (apartment, house, etc.);
• if the personal income tax payer purchased land under a residential building or suitable for building such a house on it;
• if the payer built the house himself;
• if for the purposes of the above purchase or construction the payer took out a loan at interest and paid the interest.

For all these reasons, the personal income tax payer can reduce the amount of tax withheld from him and request a refund from the budget of the personal income tax amounts previously transferred for him.

To receive a tax deduction (and refund), the payer needs:

• submit to your tax office documents confirming his expenses on the grounds set out in subparagraph. 3 and 4 clauses 1 art. 220 Tax Code of the Russian Federation;

For a list of documents submitted to obtain a property deduction, see the material “Documents for a tax deduction when purchasing an apartment in 2020-2021.”

• write an application for deduction (refund) of personal income tax amounts for the period;
• draw up and submit a 3-NDFL declaration indicating your income (for example, by place of work in the reporting year) and calculating the amount of deduction due to him in Appendix 7 of the 3-NDFL declaration.

ConsultantPlus experts explained how to fill out a declaration when selling and buying a home in the same reporting period. Get trial access to the system and start studying the issue for free.

NOTE! The declaration for 2021 must be submitted in a new form as amended by the Federal Tax Service order No. ED-7-11 dated August 28, 2020 / [email protected] .
declaration 3-NDFL and appendix 7 you can here.

What can be the code for the name of the object in 3 personal income tax?

Filling out the column with the object name code, as well as other fields that contain information about the taxpayer, is not particularly difficult. It is enough to refer to the reference information, which is presented in the form of a table, and find the object of interest. Each of them has its own digital designation. For example, when purchasing a residential building, you should enter the number “1” in the corresponding column, while purchasing a residential building along with a land plot requires the code “7”. Thus, when filling out the declaration column in which you need to indicate the code for the name of the object in 3 personal income tax, carefully read the summary table of codes and choose the one that is suitable for your specific case.

Please note that this information is subject to change due to changes in regulatory legislation.
In this regard, it is recommended to refer to the original source of data. All classifier codes, as well as other reference information that may be useful when filling out the 3-NDFL declaration, are given in the relevant Appendices to Order No. 153n of the Ministry of Finance of the Russian Federation “Procedure for filling out the tax return form for personal income tax.” Object name code in 3-NDFL

Name of the real estate property

The subject of assessment is located in the Chelyabinsk region in 7. Troitsk is a city (since 1743) in Russia, the administrative center of the Troitsky district of the Chelyabinsk region. Located 119 km. South of the city of Chelyabinsk. The city's population is 82 thousand people. The economy is represented by the following enterprises:

is a branch of OGK-2 Troitskaya GRES. In 1991, the installed capacity of the station was 2500 MW. In 2008, construction began on two more power units of 660 MW each, commissioning is scheduled for 2012. Currently, the design capacity of TGRES is 2045 MW.

How to correctly fill out 3-NDFL for filing a tax deduction

The rules for the formation of 3-NDFL are established in accordance with the procedure approved by the order of the Federal Tax Service dated August 28, 2020 No. ED-7-11/ [email protected]

Regarding filing 3-NDFL for the purpose of obtaining a tax deduction under Art. 220 of the Tax Code of the Russian Federation, the following main points can be highlighted:

1. The declaration must contain a cover page containing the information required by the Procedure.

2. Section 1 is formed, which indicates the total amount that the payer intends to return from the budget, and the BCC and OKTMO for which the overpayment occurred in the reporting year.

3. Section 2 is filled in, which displays the calculation of the resulting overpayment. As a rule, this occurs due to the fact that during the year tax agents withheld personal income tax from the payments of the person applying for deduction and sent it to the budget. Information about such total payments and deductions is disclosed in Appendix 1 of the form.

IMPORTANT! For the calculation in Appendix 1, it is also recommended to stock up on documents confirming income and deductions (for example, 2-NDFL certificates from employers). This requirement is not established by law, but inspectors have the right to demand it. See details here .

3. Transcript sheets are filled out:

• Appendix 1 - income from a source in the Russian Federation (as many sheets A are filled out as there were sources in the reporting year);
• Appendix 7 - calculation of the property deduction for the acquisition (construction) of a residential real estate property (also filled out for each property separately, that is, there will be as many sections of Appendix 7 as there were purchased or built objects);
• Appendix 6 - calculation of the deduction due upon the sale of real estate (information for each object is filled out in the same way as Appendix 7).

How to fill out 3-NDFL if housing was purchased using maternity capital? The answer to this question is in ConsultantPlus. If you don't already have access to the system, get a free trial online.

How to enter the type of property in line 020

After the applicant for the deduction has noted the name of the property in the 3-NDFL form, the tax inspector must make it clear what type of property is registered for this property. The indication of the type is required in paragraph 1.2 near the designation 020. The numbering of these types is four-digit. We propose to understand the meaning of each of the signs:

• One. This code is written in situations in which the taxpayer has registered a private type of property for housing and is the sole owner of the property.
• Two. This code must be used if the property is jointly owned by two or more individuals, one of whom is an applicant for a reduction in the tax base. Moreover, the housing is not only jointly owned, but shares are also distributed.
• Three. Three is indicated if more than one individual invested in the purchase of real estate. That is, when the owner of a given object is more than one person.
• Four. Russian legislation allows for property transactions related to the registration of housing or land in the name of individuals who are currently under eighteen years of age. Thus, if the property is owned by a child, then the number four is written on the 3-NDFL form.

In addition to the name code and type of ownership of the property, you must write the coordinates of its location on sheet D1. You will also need to enter data regarding the date of receipt of documents on the basis of which the taxpayer became the legal owner of housing or land. And only after this can you proceed to settlement transactions related to the calculation of property tax discounts.

After the sheet is completely completed, be sure to check whether it contains the page number, surname, initials and identification code of the applicant for the deduction, as well as his personal signature and today’s date.

Almost all reporting to the tax office for each employee is provided by the employer. However, in some situations it is necessary to fill out the declaration yourself. Most often we are talking about Form 3 of personal income tax, which is relevant not only for individual entrepreneurs and notaries, but also for ordinary citizens who are either required to pay tax on additional income or apply for a tax deduction.

Filling out Appendix 7, if the deduction is issued for the first time: section 2

Section 2 calculates the deduction amount. Actually, this is the section for which the entire declaration is filled out. And it is this that causes the greatest difficulty for those who are not used to filling out tax forms.

Some tax authorities working with payers on personal income tax returns verbally recommend that those who submit 3-personal income tax, filled out manually on paper, make entries in section 2 of Appendix 7 with a simple pencil so that they can correct something and circle it with a pen in the presence of an inspector.

The first thing anyone applying for a deduction should know is that the deduction is provided not from the personal income tax amount (as many mistakenly believe), but from the tax base. To make it clearer, let's look at an example.

Example

Petrov purchased an apartment for 3,000,000 rubles. The maximum deduction for this purchase, due to him under Art. 220 of the Tax Code of the Russian Federation - 2,000,000 rubles. In total, during the period specified in the declaration, Petrov earned 800,000 rubles, personal income tax on them amounted to 104,000 rubles. These 800,000 rubles are Petrov’s tax base. And it is precisely this that should be reduced by the amount of the deduction. In this case, the tax base can be reduced in full: 800,000 – 800,000 = 0. That is, Petrov will receive a tax refund in the amount of 104,000 rubles (800,000 × 13%). And Petrov can transfer the deduction balance of 1,200,000 (2,000,000 – 800,000) rubles to the following years.

When filling out Appendix 7 for the first time, Section 2 indicates:

• page 2.5 - tax base (Petrov from the example will put 800,000 there);
• page 2.6 - confirmed amounts of expenses by which the tax base for the period is reduced (Petrov confirmed with documents all 2,000,000 due to him, which means he will put the value that he actually uses - 800,000);
• line 2.8 - the balance of the deduction carried over to the following periods (years) (Petrov will put 1,200,000 in line 2.8, intended for the deduction that is given specifically for the purchase (construction) of the real estate itself).

Income type code in personal income tax declaration 3 for 2021

In Appendix 1, he fills out another block. In the source of payments in 3-NDFL field when selling a car, Semyon indicates information about the buyer. A sample declaration based on the examples given is available for download.

Income type code 020 in 3 personal income taxes for 2021

Line 020 “Income type code” in 3-NDFL signals to the tax office what type of taxable income the applicant, an individual, received under this declaration. We tell you how to fill out this field correctly, where it is located in the reporting and what values ​​of income type codes are approved by the Russian Tax Service.

We recommend reading: When Tn is Entered

However, before downloading the form, you need to make sure whether the individual has an obligation to submit the specified report. The main reason that entails filing a 3-NDFL return is the receipt by the taxpayer of taxable income. Read more in the material “ Who fills out and submits the 3-NDFL declaration?”

Appendix 7 of the 3-NDFL declaration - sample filling if the deduction is issued again

When carrying forward the balance that can be deducted to subsequent years, in these subsequent years:

• the procedure for applying for a deduction (remainder) will remain the same - again to the tax office with an application, documents and a new 3-NDFL declaration;
• There will be nuances in filling out section 2 of appendix 7 of the declaration.

Let's look at an example of how to fill out sheet 7 of the 3-NDFL declaration in case of transferring the balance of the required deduction to another period.

Example

Toporkov P.B. purchased an apartment in 2021 for 4,000,000 rubles. At the same time, Toporkov took out a loan for part of the amount, which he repaid in 2021 and 2021. In 2020, for the first time I submitted an application for a deduction for the year 2019 under clause. 3 p. 1 art. 220 of the Tax Code of the Russian Federation (purchase of real estate) and received it in the amount of 514,200 rubles. He also declared and confirmed the interest for 2021 paid to the bank on the loan that he spent on buying an apartment - 120,000 rubles. For 2021, Toporkov is again applying for a deduction. The amount of income from which tax was withheld by Toporkov’s employer is 702,540 rubles. In addition, Toporkov includes in the declaration and draws up documents for the second part of the interest that he paid on the loan - 240,000 rubles.

How all this will be reflected in Appendix 7, we will consider further:

• subsection 2.1 - amount of tax deduction for 2021 - 514,200 rubles;
• subsection 2.2. — the amount of interest deduction for 2021 is 120,000 rubles;
• subsection 2.6 - the amount of documented expenses for the reporting year 2021 - 702,540 rubles;
• subsection 2.7 - amount of interest expenses for 2021 - 240,000 rubles;
• subsection 2.8 - the balance of the property deduction carried forward to subsequent years RUB 783,260. (2,000,000 - 514,200 - 702,540);
• subsection 2.9 - the balance of the interest deduction is 0, because the amount of interest paid corresponds to the approved limit of RUB 390,000. (3,000,000 * 13%).

Thus, next year Toporkov will have the right to again apply for deduction and return of personal income tax in the amount of 783,260 rubles under sub. 3 p. 1 art. 220 of the Tax Code of the Russian Federation (purchase of an apartment).

For a step-by-step algorithm for filling out a 3-NDFL declaration to receive a property deduction, see ConsultantPlus. To do everything correctly, get trial access to the system and go to the material. It's free.

What does the object name code mean in 3 personal income tax and when is it required?

As can be seen from the name of the column in question, in this case an indication of the type of housing referred to in the tax return is required.

The need to enter it arises when information is submitted in order to obtain a property tax deduction based on the purchase or construction of housing. An individual may submit such a request if there is documentary evidence of expenses incurred for these purposes.

They are attached to the completed declaration form 3-NDFL. It consists of several sheets and contains extensive information about the taxpayer and the transaction he conducted.

In order to correctly fill out a tax return, you can contact organizations that specialize in providing such services and pay the required amount. This option is suitable for those who do not have the opportunity to spend time studying legal issues or who have a non-standard situation in which it is important to get specialist advice.

However, filling out a tax return yourself is also possible, since it is enough to follow the instructions. In addition, there are a number of sites that simplify this task by providing the ability to fill out a tax return online.

A number of information is indicated on the tax return, so when filling it out you must be able to refer to such documents as:

• passport (or other document that proves identity);
• TIN certificate;
• data on the transaction for the purchase or construction of housing (agreement, confirmation of transfer of ownership, registration, etc.).

Among other information, the columns on sheet D1 are also filled out. Here there is a calculation of the deduction, which is based on the fact of construction or purchase of housing (13% of the amount spent, then no more than 260 thousand rubles).

This is where the graph discussed in this article is located. It should indicate which property has become the property of the taxpayer.

Please note that income tax refunds can only be made for the last three years.

Results

Appendix 7 in 3-NDFL is formed in cases where the personal income tax payer has the right to a tax deduction as a result of transactions to improve housing conditions. The rules for filling out the sheet are established by order of the Federal Tax Service dated August 28, 2020 No. ED-7-11 / [email protected] There are nuances in filling out Appendix 7 in cases where the tax deduction declaration is submitted for the first time or is submitted again, for the balance of the confirmed deduction for previous periods ( years).

Learn more about the nuances of forming 3-NDFL from the article “Sample of filling out a 3-NDFL tax return.”

Read more about the specifics of registering a deduction when purchasing real estate in the article “Procedure for compensation (return) of personal income tax when purchasing an apartment.”

Sources:

• Tax Code of the Russian Federation
• Order of the Federal Tax Service of Russia dated August 28, 2020 No. ED-7-11/ [email protected]

You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

Code of the name of the object in 3 personal income tax, what code of the name of the object should be written in the certificate of 3 personal income tax

Almost all reporting to the tax office for each employee is provided by the employer. However, in some situations it is necessary to fill out the declaration yourself.

Most often we are talking about Form 3 of personal income tax, which is relevant not only for individual entrepreneurs and notaries, but also for ordinary citizens who are either required to pay tax on additional income or apply for a tax deduction.

Entering information into this document has a number of features, since they are presented in encoded form. Let us consider in more detail the question of what to indicate in the field in which the code for the name of the object is displayed in 3 personal income tax, and in what cases it is necessary to fill it out.