Tax deduction for individual entrepreneurs - what is needed to obtain it

A deduction generally means a reduction in the tax base or calculated tax by the amount of certain expenses. Such a mechanism is provided for calculating various payments, including the tax that is levied on the income of employed citizens. Whether tax deductions are allowed for a company depends largely on the regime it applies. In this article we will look at deductions and figure out when an entrepreneur can receive them.

But first we need to clarify the concept itself. A deduction is not a benefit, but a mechanism for reducing and refunding overpaid tax. The right to it arises due to the fact that the payer has incurred certain expenses. And when calculating the base, they can be taken into account. Accordingly, if the tax was not paid at all due to the fact that it is not provided for by the regime, then nothing will be returned.

Right to deduct personal income tax

Most of the deductions are provided for by the personal income tax. It is paid by all citizens working under labor and civil contracts. In addition, personal income tax is subject to certain other types of income, for example, received from renting or selling property, from investing, under insurance contracts, and others.

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Individual entrepreneurs in the main tax regime (OSNO) also pay personal income tax. Can an individual entrepreneur receive a tax deduction if he uses this tax system? Of course, it can, since all the rights of a taxpayer apply to it. But those individual entrepreneurs who have chosen preferential regimes (USN, UTII, PSN, Unified Agricultural Tax) do not have the right to deductions for personal income tax. They are not payers of this tax, they have no tax base, which means they have nothing to reduce.

At the same time, it cannot be said that entrepreneurs in special regimes are completely deprived of the right to tax deductions for personal income tax. After all, at the same time as their business, they can receive other income that is subject to this tax. For example, if an individual entrepreneur on a simplified system simultaneously works for hire or rents out real estate, then he retains the right to deduction. But it can only be applied to income subject to personal income tax.

Thus, the rule is very simple: if an individual entrepreneur pays personal income tax at a rate of 13%, then he can receive the deductions provided for in its calculation.

Example 1

Citizen Smirnov worked in a company and received a salary of 40 thousand rubles, from which his employer withheld monthly and transferred personal income tax to the budget. When calculating the tax, a standard deduction per child was used in the amount of 1,400 rubles. The tax was calculated as follows: (40,000 - 1,400) * 13% = 5,018 rubles.

Smirnov decided to try his hand at business, for this he registered an individual entrepreneur and immediately switched to a simplified tax regime. However, he had not yet quit his job, meaning he still received wages. The employer still continued to calculate personal income tax from her and apply the child tax deduction. The entrepreneur must calculate the tax on business income under the simplified tax system himself; deductions are not applied in this case.

A few months later, Smirnov decided to devote his time entirely to a new business and left his job. He no longer had income that was subject to personal income tax at a rate of 13%. Accordingly, Smirnov no longer has the right to apply a personal income tax deduction.

Starting from the next calendar year, the businessman decided to change the tax regime from simplified to basic - it was more profitable for the business. He began to pay personal income tax, since it is provided for by the basic taxation regime, which means that the right to apply tax deductions has arisen again.

There are several types of personal income tax deductions. Articles 218-221 of the Tax Code of the Russian Federation are devoted to them. Let's look at the most common ones in more detail.

Conditions for tax deduction refund: general rules

When developing and explaining the concept of “tax deduction,” legislators identified several basic rules for obtaining it. In particular, the following conditions must be met:

• The largest amount by law for using a tax deduction is 2 million rubles. If an apartment or some other piece of real estate costs more, then everything above 2 million rubles. will not be taken into account;
• The personal income tax is 13%, so it is easy to calculate that the maximum tax deduction (that is, from 2 million rubles) will be equal to 260 thousand rubles. It is worth noting that the amount of the tax deduction can be returned at any time period - in this case there are no restrictions;
• Since the beginning of 2014, a rule has been in force according to which it is possible to receive a tax deduction not from just one apartment, but from several apartments or any other real estate at once. The main thing is to comply with the requirement that their price does not exceed 2 million rubles.
• you can include in the deductible the cost of repairs and finishing of a new apartment if the purchase and sale agreement states that the housing is purchased without finishing;
• if real estate is purchased from close relatives (parents, brothers or sisters, own children), the right to a tax deduction for its acquisition is lost, since in this case the partners in the transaction are recognized as interdependent individuals (clause 1 of Article 105.1 of the Tax Code of the Russian Federation);
• If the property was purchased with a mortgage, then a tax deduction is also made from the interest paid on the mortgage loan. Moreover, in this case, taking into account interest, a deduction can be made from an amount of 3 million rubles. This norm was developed as a measure of additional support for the development of the Russian mortgage market.

The above rules apply not only to individual entrepreneurs, but equally to all other citizens of the Russian Federation.

History: until 2014, a tax deduction could be applied to only one piece of real estate, but now this restriction has been lifted. The main thing is that the total cost of the acquired real estate should not exceed 2 million rubles.

Thus, it is obvious that the tax deduction is an excellent help to support those citizens who are employees and receive a “white” salary. In this sense, it is somewhat more difficult for individual entrepreneurs: they cannot always return taxes paid to the state.

Professional deductions

Let's start with them, since this is the only type of deduction intended specifically for entrepreneurs. These deductions are also used by individuals who are engaged in private practice, receive royalties or income under civil contracts. When calculating the personal income tax base, they can deduct documented expenses. But only those that are directly related to generating income.

It happens that there is no documentary evidence. In this case, can an individual entrepreneur receive a professional tax deduction without them? Yes, but only in the amount of 20% of the income. For example, his revenue was 100 thousand, and his expenses were 80 thousand rubles. If the individual entrepreneur has supporting documents, then the tax will be calculated as follows0) * 13% = 2,600 rubles. If there are no documents, only 20 thousand rubles can be deducted. The tax will be 0) * 13% = 10,400 rubles.

Investment

Individual entrepreneurs who invest for the long term are available. In this case, the taxable amounts are reduced:

• on the total profit from investment activities.
• the difference between the sale amount and the original cost;
• for the amount deposited into the investment current account during the reporting period;

Investment deductions are regulated by the Tax Code of the Russian Federation, Part 2, Article 219.1.

Individual entrepreneurs on the preferential tax system (PSN, USN, UTII, Unified Agricultural Tax) do not have the right to tax deductions, since they are exempt from personal income tax. Such an entrepreneur can receive compensation only if, in addition to his activities, he has income from which he deducts 13%. This:

• payment under an employment contract;
• property rental;
• Property For Sale;
• winning the lottery.

Such income is subject to declaration and entitles individual entrepreneurs to take advantage of tax deductions.

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October 23, 2021 1881

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Standard deductions

The peculiarity of these deductions is that they are in no way related to the expenses incurred by the citizen, and therefore resemble benefits. Another distinctive feature is that in most cases they are of symbolic size.

The most common option is the children’s deduction mentioned in the example about IP Smirnov. For the first and second children, 1,400 rubles must be deducted from the tax base, for the third and each subsequent child - another 3,000 rubles, for a disabled child - 12,000 rubles. A deduction in this amount can be claimed for each month of the year until the taxable income of an individual entrepreneur exceeds 350,000 rubles.

There are other deductions in this group - for veterans, heroes of the USSR or the Russian Federation (500 rubles), liquidators of the Chernobyl disaster (3,000 rubles) and other persons.

Standard

It has two main types: deduction for the taxpayer and deduction for the child.

Deduction per taxpayer

Indicated by two fixed amounts:

• 13 categories of individuals can receive 3,000 rubles monthly, including veterans and disabled Chernobyl victims, WWII veterans, nuclear testers and others;
• 500 rubles are available monthly to 15 categories of persons, including Heroes of the Russian Federation and the USSR, veterans of the siege and concentration camp prisoners, participants in combat operations in Afghanistan and others.

A complete list of citizens who have the opportunity to receive compensation is approved in Article 218 of the second part of the Tax Code of the Russian Federation. Deductions per taxpayer are not cumulative. If the applicant’s status falls into two categories, only one deduction is given - the maximum of the corresponding ones.

Child deduction

Provided regardless of the availability of other standard tax deductions. Payments depend on the applicant's status.

• For the child's parent, parent's spouse, adoptive parent:

  1400 rubles - for the first and second child;

• 3000 rubles - for the third and each subsequent child;
• 12,000 rubles - for each disabled child

The procedure for receiving and the specifics of calculating standard deductions are defined in Article 218, Part 2 of the Tax Code of the Russian Federation.

Social deductions

This group includes 5 types of deductions:

• for education – your own, your children’s, your brother’s or sister’s;
• for medical services, medicines and voluntary health insurance for yourself, a child, parents or wife/husband;
• for voluntary insurance or non-state pension provision for oneself, a spouse, parents or a disabled child;
• on the funded part of your labor pension;
• for charity (up to 25% of income).

The maximum amount of social deductions in total is 120,000 rubles. The payer decides for himself how to distribute them. Amounts transferred to charity are not included in this limit, as are expensive treatment and education of children. For each child's full-time education, up to 50,000 rubles can be deducted per year. You can apply for a social deduction no later than 3 years after the date in which the right to it arose. This follows from Article 78 of the Tax Code of the Russian Federation.

Does a citizen have the right to such a deduction if he studied, for example, in a foreign language course? The law does not stipulate any restrictions on the direction of study. These can be any required courses. The main rule is that the educational institution must have the appropriate license.

Property deduction

An individual entrepreneur acquired a real estate property as an individual or spent money on housing construction. He has the right to a property deduction if he received income subject to a 13 percent tax.

Thus, benefits are provided:

• sale and purchase of real estate;
• purchase of property from an individual by a municipality or state;
• housing construction.

Example. Individual Entrepreneur Petrov works on a “simplified basis” without income as an individual. He buys an apartment. It will not be possible to get back some of the money spent. But the spouse who is paid the salary can provide documents for a refund.

The same principle applies to paying off a home loan. And it doesn’t matter in whose name the loan agreement is drawn up - the husband or wife. Both spouses receiving income with a tax rate of 13% have the right to a refund.

When selling any real estate that has been owned for more than 3 years, tax benefits are not provided. After the transaction, there is no need to file a declaration and pay 13% personal income tax.

An exception is commercial real estate (non-residential premises, land plots, technical networks). Regardless of the period of ownership of such property, after its sale you will have to file a declaration and pay 13% (clause 17.1 of Article 217 of the Tax Code). It will be possible to return some of the funds.

Property deductions

Property deduction is due to those personal income tax payers who:

• incurred costs for the purchase of housing or land for building a house;
• received income from the sale of real estate or other property;
• sold the shared construction project, that is, assigned the right to claim it;
• sold a share in the organization.

Most often, those who have purchased housing apply for a property deduction. The following expenses can be deducted:

• in the amount of the cost of the object, but not more than 2 million rubles;
• in the amount of interest paid on targeted loans for the purchase of real estate or for refinancing such loans, but not more than 3 million rubles.

Example 2

Individual entrepreneur Pavlov bought an apartment for 3 million rubles and another 1 million was interest on the mortgage. He can claim a deduction for the cost of the apartment, but not more than 2 million, and return 2,000,000 * 13% = 260,000 rubles from the budget. From interest you can return the amount of 1,000,000 * 13% = 130,000 rubles. Total 390 thousand. Let’s assume that personal income tax for the past year amounted to 130 thousand. This means that this exact amount will be returned, and the rest will be transferred to the next 2 years.

The property deduction is granted once in a lifetime and can be claimed at any time after such a right arises. The question arises: does a citizen have the right to keep the remainder of the deduction if the apartment cost less than 2 million? There is a nuance here related to the acquisition period:

1. If this happened in 2014 or later, the deduction can be divided between the objects. Let's say the apartment cost 1.5 million rubles. This amount will be declared as a deduction, and the remaining 500 thousand will remain. They may come in handy when purchasing another property.
2. If the apartment was purchased before 2014, then the deduction cannot be divided. In this case, it can only be declared within the limit. That is, if the apartment costs 1.5 million, the deduction of 500 thousand will simply disappear.

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Opportunity for individual entrepreneurs in a special mode

The greatest interest usually arises among special regime officers regarding property deductions. Does an individual entrepreneur using the simplified tax system or UTII have the right to a tax deduction when buying an apartment? We explained above that an entrepreneur cannot use it on his own, because he does not pay personal income tax. However, there is a nuance - his spouse can claim a deduction if he has the right to do so.

For example, an entrepreneur Petrov bought an apartment using the simplified tax system. He does not have the right to a property deduction, since he does not pay personal income tax. But the businessman’s wife, who works in the company, has it. The apartment was acquired during marriage and is considered the joint property of the husband and wife. Therefore, citizen Petrova has the same right to deductions as he himself.

How to make an income tax refund?

Required documents

At the end of the year , an individual entrepreneur applying for compensation must prepare a standard package of documents .

1. Declaration in form 3-NDFL (fill out independently and submit to the tax authority).
2. The general package of documents must contain a certificate in form 2-NDFL (it reflects the amount of taxes withheld by the employer for the required period).
3. Prepare copies of documents confirming ownership of the acquired property:
   DCT (in case of purchasing an apartment);
4. certificate of state registration of rights (for the acquisition or construction of a house, land, purchase of a share or room);
5. loan agreement or target loan agreement (when repaying mortgage interest and further processing of property deductions for them).
6. Prepare copies of payment information:
   confirmation of expenses for the purchase of an apartment (cash and sales receipts, bank statements, acts of purchase of materials, receipts for receipt orders);
7. confirmation of payment of interest on a mortgage or loan agreement (certificates from a credit institution, extracts from personal accounts).
8. Property acquired into common ownership will require confirmation in the form of the following documents:
   application of the spouses for the distribution of property deductions;
9. a copy of the marriage certificate.

The collected package of documents must be accompanied by an application for income tax refund, tips for filling it out and a sample of which you will find in this material.

Where and when to submit?

The listed package of documents, together with the 3-NDFL declaration, must be submitted to the tax authority at the place of registration of the individual entrepreneur. You can start applying for benefits at any time , even immediately after purchasing the property.

The transfer of the requested payment (if the municipal body makes a positive decision) will be made only at the end of the tax period). To obtain a deduction, information for the three previous years is taken into account.

Sum

As for individuals, the procedure and amounts for personal income tax refunds for individual entrepreneurs are identical. Thus, when registering ownership of an apartment, the maximum amount for payment is 2 million rubles, regardless of the actual purchase price. In this case, the maximum amount of property deduction will be 260 thousand rubles.

In the case of mortgage lending to individual entrepreneurs, the amount of preferential calculation will be increased to 3 million rubles.

Important! Since 2014, a property deduction has been possible in relation to several pieces of property, up to the exhaustion of the return limit amount.

Self-calculation

As stated earlier, a refund of the property deduction is possible within 13% of the cost of the purchased housing.

With mortgage lending, the buyer can count on a refund of the following amounts:

• 2 million rubles (cost of purchasing living space);
• 3 million rubles (the amount of mortgage interest paid).

The first option for calculations can be applied to several properties, until the final selection of the amount of the deduction is reached (that is, until the property return reaches the maximum possible level of 260,000 rubles). If, when purchasing an apartment, the deduction amount is less than the maximum possible, the right to the benefit is retained for subsequent purchases.

For example: an apartment was purchased for 1,560,000 rubles. The calculation of the property deduction that the owner can claim is carried out as follows:

1,560,000*13% = 202,800 rubles.

He can request payment of the missing amount of compensation in the amount of 57,200 (260,000 - 202,800) rubles upon the next purchase of real estate.

An example of a calculation when purchasing an apartment with a mortgage:

2,000,000*13% + 3,000,000=13% = 260 thousand + 390 thousand = 650 thousand rubles.

Payment terms

In accordance with clause 6 of Article 78 of the tax legislation, the amount of the claimed deduction must be returned to the applicant within 30 days from the date of registration of the application for the deduction. But at the same time, Article 88 somewhat contradicts it, indicating the return of the property deduction only after the end of the desk audit (which, as is known, lasts at least 3 months).

In addition, it is not indicated anywhere whether we are talking about full months, because the taxpayer can submit an application in the last days. At the same time, Federal Tax Service employees allow the possibility of returning the deduction within 30 days. It turns out that the expected period for returning the property deduction is at least 4 months.

The following reasons for delayed payments may arise:

1. lack of some documents;
2. detection of facts of inconsistency prohibiting the owner from receiving a property deduction;
3. errors, human factor.

Reference. If the requested refund is not received within the maximum possible period, it is necessary to contact the head of the tax authority with a written complaint (drawn up in duplicate, with marks of acceptance by the tax authority). Article 138 of the Tax Code allows for recourse to court in such cases.

For the convenience of our readers, we have prepared step-by-step instructions for returning personal income tax when purchasing an apartment. We also note that a tax deduction can be obtained not only when purchasing, but also when selling an apartment that has been owned for less than 3-5 years. You can find out more about this here.

The procedure for obtaining an individual entrepreneur deduction

Unlike ordinary personal income tax payers, individual entrepreneurs calculate their taxes, pay them and submit reports independently. If deductions are required, they are declared in the 3-NDFL declaration, which must be submitted by April 30 of the following year. The current form was approved by order of the Federal Tax Service dated October 3, 2018 No. MMB-7-11/ [email protected] Otherwise, tax deductions for individual entrepreneurs are provided according to general rules, since there are no special rules in the Tax Code of the Russian Federation.

For each deduction you will need an individual set of documents. If we talk about property deductions for the purchase of an apartment, you will need:

1. Passport.
2. Certificate of ownership of the apartment or extract from the Unified State Register of Real Estate.
3. An apartment purchase and sale agreement or other document on the basis of which the property was purchased.
4. Transfer acceptance certificate.
5. If at the same time a deduction is claimed for interest on a loan - a mortgage, loan or other agreement.
6. Payment documents.
7. Marriage certificate, if the owner is a member of it.
8. Certificate 2-NDFL, if the individual entrepreneur works in parallel.

These documents are provided in the form of originals and copies. They are attached to the 3-NDFL declaration.

General concept of tax deduction for individual entrepreneurs

All individual entrepreneurs are taxpayers and, depending on the chosen taxation system, pay various taxes to the state budget.
The obligation to pay a particular tax is specified in the Tax Code of the Russian Federation. Find out what tax changes individual entrepreneurs need to take into account in 2021 here.

However, there are situations when it becomes possible to reimburse the amounts of taxes paid. All of them are described in the Tax Code of the Russian Federation and are called “tax deductions”. A tax deduction is the right of a taxpayer to reimburse a certain amount of taxes paid or to be released from the obligation to pay them.

For information about what a VAT tax deduction is, see the material “What are VAT tax deductions” .

Deductions for certain other taxes

Personal income tax deductions are the largest and most common, but not the only ones. Entrepreneurs are given other opportunities to save a little on taxes.

1. Individual entrepreneurs of the simplified tax system with the object “Income” have the right to deduct the amount of insurance premiums when calculating tax. If you have employees, you need to add up the contributions for them and for yourself, and subtract the resulting amount from tax. Tax reduction is allowed by 50%. If there are no employees, then your contributions can be fully deducted from tax. It is impossible to go into negative territory, that is, nothing will be returned from the budget. This way you can save on tax every year. For example, in 2021, an individual entrepreneur without employees will be able to reduce tax by more than 40,000 rubles through contributions.
2. Individual entrepreneurs on the “profitable” simplified tax system from Moscow who are engaged in any type of trade can save on paying the trade tax. After reducing the tax on insurance premiums, they deduct the amount of this payment from it. An important condition is that in order to be able to apply the deduction, the entrepreneur must independently register as a payer of the trade tax. If he doesn't do this, he won't be able to save money.

So, we have considered the question of whether an individual entrepreneur can receive a tax deduction for personal income tax. The right to a deduction arises for any citizen, including an entrepreneur, if he receives any income on which he pays personal income tax at a rate of 13%. If he does not have such income, then he will not be able to make a deduction when calculating his taxes.

Conditions for an entrepreneur to obtain the right to a tax deduction

To receive a tax deduction, it is necessary that the entrepreneur receive income subject to 13% personal income tax as an individual. Individual entrepreneurs operating under the following taxation systems are not required to pay personal income tax:

• simplified tax system;
• UTII;
• patent SN.

Consequently, they cannot receive a tax deduction for their business activities. Simplified taxation regimes make it possible not to pay established types of taxes, including personal income tax (individual entrepreneurs are not exempt from insurance contributions in this case). Thus, there is no basis or basis for filing a deduction. When applying these taxation systems, a deduction is provided only when a citizen combines entrepreneurship and activity as an employee, for whom the employer pays personal income tax.

Size no.

Having decided whether an individual entrepreneur can receive a tax deduction, let’s consider the amount of this benefit that can be provided:

• 2,000,000 rub. – on the cost of purchasing an apartment;
• 3,000,000 rub. – for the costs of repaying the mortgage loan, if the apartment was purchased no earlier than January 2014;
• The full amount of overpayment on credit interest - if the property was purchased before 2014.

Please note that if an apartment was purchased during marriage, then both spouses, regardless of who directly bore the costs of purchasing housing, are entitled to a property tax deduction in the amount of RUB 2,000,000. for everyone. Thus, if an individual entrepreneur, while married, purchased an apartment worth 4,000,000 rubles. he and his wife will be able to deduct the entire amount of purchase expenses, but only on the condition that the wife also has income subject to personal income tax at a rate of 13%

Example #1

IP Voroshilov A.S. in 2015 I bought an apartment worth RUB 1,595,300.

In 2015, the individual entrepreneur applied OSNO and personal income tax paid for the year amounted to 215,850 rubles.

Since the cost of housing does not exceed the established limit, Voroshilov will be able to declare the entire amount of expenses for deduction.

The current amount that the individual entrepreneur will receive in his hands will be 207,129 rubles:

RUB 1,595,300 x 13%

By this amount, he can also reduce the personal income tax payable to the budget for the year in which the tax is received.

Example No. 2

Individual entrepreneur A.S. Voroshilov, while married, bought an apartment in 2021 worth RUB 8,585,800.

The income of individual entrepreneurs for 2021 amounted to 1,859,870 rubles.

The income of Voroshilov’s wife (also an individual entrepreneur at OSNO) is 1,325,600 rubles.

The total amount of non-residents that the Voroshilovs will be able to declare is 4,000,000 rubles.

Voroshilov A.S. for 2021 will be able to receive the amount of 241,783 rubles:

RUB 1,859,300 x 13%

Unspent balance – 18,217 rubles. will move on to next year.

Voroshilov’s wife will be able to receive a deduction in the amount of 172,328 rubles:

RUB 1,325,600 x 13%

The balance is 87,672 rubles. will also carry over to next year.

Example No. 3

IP Voroshilov A.S. I bought an apartment in 2021 with a mortgage worth RUB 2,585,700.

Personal income tax paid for 2021 amounted to 109,200 rubles.

Overpayment on the loan – 240,000 rubles.

The cash, which Voroshilov will be able to return to his hands, will amount to a total of 291,200 rubles.

260,000 rub. – main present

RUB 31,200 – for interest on overpayment

Since Voroshilov’s income is not enough to receive a lump sum payment for the purchase and interest in 2021, it is better for him to first receive the entire tax payment for the purchase of an apartment and only then claim a discount on interest.

Can an individual entrepreneur receive a property deduction under the simplified tax system and other tax regimes?

Can an individual entrepreneur qualify for a property deduction? The answer to this question largely depends on the tax regime applied to business activities.

To receive a tax deduction, it is required that a person has income taxed at the personal income tax rate of 13% (otherwise there is nothing easier to apply for a refund from).

Most Russian entrepreneurs use special regimes in their work aimed at optimizing the tax burden. These include simplification, imputation and patent. The peculiarity of these special regimes is that the individual entrepreneur is exempt from personal income tax , instead of which he pays a single tax at a reduced rate (in accordance with clause 3 of Article 346.11 of the Tax Code).

This means that individual entrepreneurs using the simplified tax system, PSN and UTII are deprived of the right to property deductions.

But in some cases, entrepreneurs can count on receiving tax preferences:

1. They operate under the general tax regime (OSNO), which involves paying personal income tax on business income. An individual entrepreneur must pay personal income tax on the amount of income received, reduced by deductions provided for by law (social, business-related, property, etc.).
2. They are simultaneously employed and have taxable income in the form of wages (for the purpose of processing a budget refund, their entrepreneurial status will not matter).
3. They have alternative income, taxed at a rate of 13% (from renting a room/apartment, selling other property - in such a situation, a double tax deduction is issued within one year).

It is worth considering one more point: an individual entrepreneur can apply for a deduction in the subsequent tax period, when he has income taxed at a rate of 13%. In this case, the period of application for deduction is limited to three years.

Example . The individual entrepreneur bought real estate in 2021. In 2017, he got a job and can apply to the Inspectorate for a deduction, but this must be done no later than 2019.

But if the entrepreneur does not exercise his right to a tax refund on this object, he will be able to do this in relation to the next acquisition until he exhausts the limit of 2 million rubles established by law.

How is the right to benefit claimed?

Combining information in one declaration, including data on revenue, professional and other types of deductions, complicates the tax refund procedure.

The peculiarity of indicating a deduction, which implies the receipt of funds from the budget, is the mandatory conduct of a desk audit after indicating a property deduction in the declaration. Due to the fact that the audit is carried out on the tax as a whole, control will be carried out in relation to all data specified in the individual entrepreneur’s declaration.

Example of using a deduction

IP Smirnov A.A. operates at OSNO. The individual entrepreneur's revenue for 2014 amounted to 1,200,000, expenses - 950,000 rubles. In 2014, Smirnov A.A. purchased an apartment worth 2,500,000 rubles. The individual entrepreneur entered the following information in the declaration:

1. The amount of income in the amount of 1,200,000 rubles;
2. Total amount of tax deductions: 1,200,000, including professional deduction in the amount of 950,000 rubles, part of the property deduction in the amount of 250,000 rubles;
3. Tax base for personal income tax equal to “0”.
4. The calculated personal income tax amount is equal to “0”.
5. Conclusion: IP Smirnov A.A. was able to use part of the property deduction in the amount of 250,000 rubles.