Tax deduction when buying an apartment 2021

Concept

Individuals have the right to count on a number of tax benefits. They relate to medical services, education, purchase or construction of real estate and a number of other cases. Benefits are available to citizens who belong to needy and socially vulnerable groups - parents of children under 18 years of age, low-income people, large families and other persons.

Tax deduction is the receipt of a previously paid amount transferred to the budget in the form of personal income tax. The service works according to the following algorithm:

An individual reports real profits and pays a 13 percent tax.
If a citizen incurs expenses that fall under the benefits, he has the right to expect a refund of previously paid tax.
The service is indicated after the application of the person entitled to the benefit.
The state returns only 13% of a certain amount.

Who is not entitled to a tax deduction?

Tax benefits are not available to persons who do not fall within the above categories. This list includes:

Unemployed citizens.
Some individual entrepreneurs.
Non-residents of the country and others.

When it comes to spouses, the benefit is given only to the spouse. It does not matter who owns the property. The Family Code of the Russian Federation states that property acquired by a couple is considered joint property (except when other conditions are specified in the loan agreement).

Example. Ivanov E.I. works as an individual entrepreneur on the simplified tax system and pays the state 6% of the profit received. Despite the fact that he contributes money to the country's budget, he cannot count on a tax deduction.

The situation is opposite for E.I. Petrova, who works as a nurse in a hospital and earns 8,000 rubles and has four children. Petrova filed a deduction, so personal income tax is not taken from her (due to the fact that her income does not exceed the amount of the benefit). Petrova is not entitled to property relief for the reason that she is not a tax payer.

How to get a tax deduction

Documents for a tax deduction can be drawn up immediately as soon as you have taken ownership and received all the documents listed above. There is virtually no limitation period; you can exercise your right even after five or six years.

The situation is a little more complicated if the transaction took place a long time ago and no deductions were made. The fact is that you can exercise your right taking into account only the last three years, namely. If the apartment was transformed in 2015 and only by 2021 you remembered your legal right to deductions, then you will receive deductions only for 2017-2018-2019, 2021 will be lost, and the entire balance will be transferred to 2021.

In general, the entire procedure for obtaining a tax deduction can take two to four months. Most of this time will be spent on checking documents with the Federal Tax Service. If everything is correct, the money will be transferred to you after all procedures have been completed.

Let’s be honest, collecting the entire package of documents, filling them out correctly, and standing in line at the Federal Tax Service on your own is very difficult. It will take time and persistence. You can use the services of various agencies offering similar services, but it will cost money. As a result, whether you do it yourself or with outside help you get an unambiguous result, the whole question is a matter of time.

When it comes to receiving it, you have a choice: either directly contact the Federal Tax Service at your place of registration, or do everything through your employer. The essence of the second method is that you will no longer be charged 13% personal income tax until the entire tax deduction is exhausted.

All examples of transactions for the sale and purchase of housing were discussed above. Let's turn our attention to construction.

In order to receive a tax deduction for repairs or construction of new housing, it is necessary to collect all receipts and payment documents confirming expenses. The Federal Tax Service provides:

certificate for land or apartment (copy);
an agreement with a contractor company to perform a certain type of work with the obligatory attachment of an estimated cost;
all documents confirming expenses.

To independently certify documents, without involving a notary, you can put your signature on each copy and write: “Copy is correct” and it is advisable to always have duplicates with you in case of an unforeseen event.

For which real estate can a tax deduction be issued?

The Tax Code of the Russian Federation contains a list of real estate, the costs of which allow you to demand the return of part of the money from the state. This category includes:

Apartments in a building under construction or being part of a finished building.
Individual housing construction - house (country house, garden), cottage, villa and other objects.
A plot of land intended for the construction of a house.
Shares in each of the types of property mentioned above.

The main criterion for whether an object is suitable for receiving a tax deduction or not is the ability to register in a house (apartment).

The essence of property deduction

A property deduction when purchasing a home is a real opportunity to return the personal income tax (NDFL) paid to the budget. The conditions for receiving a deduction upon purchase are:

status of tax resident of the Russian Federation, that is, a person lives more than 183 days in a calendar year in Russia;
acquisition or construction of residential property (house, apartment, room or share in them) on the territory of the Russian Federation;
availability of income subject to personal income tax at a rate of 13%.

In what cases is relaxation possible?

The law specifies cases when a citizen has the right to count on compensation for investments. This category includes the cost of purchasing the property, obtaining a mortgage, principal payment, interest payment, or construction (in which case an agreement is required).

It is not allowed to include penalties, accrued penalties, repayment of penalties, or the purchase of an undeveloped plot of land in the amounts for reimbursement of expenses.

The costs of purchasing a plot of land may be included in the list of compensable items if a residential building is built on the plot.

Total amount of deduction when purchasing an apartment

The right to claim tax deductions on property is established by Article 220 of the Tax Code of the Russian Federation. In fact, this is part of the actual costs incurred for the purchase of housing, which the state allows to be legally withdrawn from income tax.

Based on paragraph 3 of Article 220 of the Tax Code of the Russian Federation, the maximum deduction when purchasing an apartment without a mortgage is 2 million rubles.

This means that when purchasing an apartment, the amount of tax refund in 2017 cannot exceed 260,000 rubles. It is calculated using a general unified formula:

2,000,000 rub. × 13% = 260,000 rub.

Inspectors usually track what amount of tax deduction when purchasing an apartment is declared in the 3-NDFL declaration - 2 million rubles or less. They compare it with the attached copy of the purchase and sale agreement, which indicates the price of housing agreed upon by the parties (they may also request the original).

Therefore, in practice, the buyer usually strives for the price of the residential property in the contract to be at least 2 million rubles. This makes it possible to fully use the tax deduction. How much is returned when buying an apartment is the second question, which naturally fades into the background.

Also see “Documents for tax refund when purchasing an apartment: list in 2017.”

The deduction amount is slightly larger when purchasing an apartment with a mortgage. It amounts to 3 million rubles from the repaid interest on the loan (clause 4 of Article 220 of the Tax Code of the Russian Federation).

That is, the maximum amount of personal income tax refund when purchasing an apartment using a mortgage loan (loan) can be 390,000 rubles.

3,000,000 rub. × 13% = 390,000 rub.

Also see “Sample 3-NDFL for 2021, if the apartment was purchased with a mortgage.”

Main changes

The tax deduction that is due when purchasing real estate was changed in 2013. The amendments have been in effect since the beginning of 2014, including in 2021. The following nuances are worth highlighting here:

The amount of the deduction in 2018 does not exceed 2 million rubles. This figure has not changed since 2008. Since the beginning of 2014, this limit applies not only to the object of the transaction (apartment, house, land plot or room), but also to the subjects. It turns out that two million are provided taking into account one taxpayer, who has the right to claim a deduction for a group of objects with a total price of up to 2 million rubles. Previously (before 2014), the deduction was available only for one purchase item with a limit of 2 million rubles. If a person makes the following purchases, there is no tax deduction.

For example, a citizen purchased a house and apartment at a price of two and one million rubles, respectively, in 2011. He has the right to receive a benefit for one object. In practice, house returns are recommended because they have a high price. Let's consider another situation, when a house and apartment worth 1.6 and 0.6 million (in national currency) were purchased in 2017. In this case, a tax deduction is taken from two objects, but in the amount of up to two million rubles.

The amount of mortgage interest deduction does not exceed three million rubles. Therefore, if previously a taxpayer received 13% of all mortgage interest costs, today there is a limit above which there is no deduction.

It is worth noting that the changes apply to those persons who did not receive a deduction for objects for which the rights to deduction appeared:

Until January 2014. Let's consider the situation. A man purchased an apartment for half a million rubles under contract in 2012 and immediately registered ownership. Three years later, housing was purchased for 1.8 million rubles. If a person received a tax deduction for an apartment purchased in 2012, he will not be able to use the right to a tax deduction for a new purchase made in 2015.
Since the beginning of 2014. For example, a citizen purchased an apartment in 2011 for a million rubles according to the DDU, and the acceptance certificate was signed two years later. The deduction was issued in 2017. If the registration is successful, the deduction is no longer provided for the subsequent purchase of a house (apartment).

Deduction amounts

Tax deductions for purchasing an apartment and participating in other property transactions in 2021 will be calculated based on the following indicators:

the price of the purchased property;
the cost of materials used in private construction;
payment for the labor force used to carry out repairs in the building, as well as its construction;
costs for processing all documents related to the purchase;
repayment of a mortgage loan, including interest and principal of the loan (but not penalties).

To eliminate disputes, the law established maximum limits for monetary refunds. This year, the Federal Tax Service announced the following figures:

up to 260,000 rubles can be paid to one employed citizen at a time;
the maximum total deduction amount for all periods cannot exceed 2,000,000 rubles;
in relation to one piece of real estate (plot of land), two spouses can use the right to tax subsidies at the same time, therefore the amount of deduction will be up to 520,000 rubles;
390 thousand will be relied upon by the borrower to pay off mortgage interest.

For example:

Spouses Alexey and Tatyana bought a house worth 1,800,000 rubles. The couple purchased the property in cash without the use of debt capital. On the date of acquisition, both spouses are officially employed and a 13% deduction is made from their income in favor of the state budget.

Over the previous three years (the period for which personal income tax is considered for a refund), 200,000 rubles of income tax were paid from the wife’s salary, and 75,000 from the husband’s income. After registering ownership of the property, the couple applied to receive a refund. The request was granted and the following calculation algorithm was used:

1,800,000 * 13% = 234,000 – the amount that the state can reimburse each spouse separately.
234,000 – 200,000 = 34,000 – the remainder of the right to return after paying the money to the spouse.
234,000 – 75,000 = 159,000 balance of available subsidy after transferring money to husband.

Thus, in the future the couple will either be exempt from paying personal income tax or will gradually receive the remaining amount. Tatyana claims another 34,000, and Alexey – 159 thousand.

What should the tax deduction amount be?

The amount of tax deduction in 2018 depends on the following aspects:

The legal right has appeared since the beginning of 2014 - 13% of the housing price when purchasing property under a contract, but not more than 260 thousand rubles. Before 2014, this amount was two times less.
Every year you can return no more than 13% of the annual profit, on which 13% personal income tax is charged. The restrictions specified in the previous paragraph remain in force. For example, the annual salary is one million rubles, and the price of housing is 1.3 million. For the year, 13% of the salary is returned, namely 130 thousand rubles. Next year, you need to register the balance to receive the funds that were not received in the current year.

It is worth noting here that it will not be possible to apply for a tax deduction on dividends, despite the collection of 13% tax on this amount.

What documents must be provided to receive a tax deduction?

One of the most objective questions asked by those wishing to receive a tax deduction.

To receive a refund from the purchase of property, you must submit an application for a property tax deduction. Samples for drawing up applications are freely provided by the Federal Tax Service. In accordance with them, it is necessary to draw up documents. There are two types of applications for the deduction, single or joint. In the first case, the application is drawn up on behalf of the buyer, in the second - from a group of persons participating in the acquisition. According to the law, a married couple can use the tax deduction in different shares.

Example of application content:

Based on paragraphs. 2 clause 1 article 220 of the Tax Code of the Russian Federation, we distribute the tax deduction (if the application is written from two people) personal income tax for expenses in the territory of the Russian Federation apartment at the address st. Sadovaya 33.
In the following way:
Ivanov Peter Gennadievich in the amount of 1,000,000 rubles. OO cop. (one million rubles 00 kopecks)
Ivanova Pestrina Gennadievna in the amount of 500,000 rubles. 00 kop. (five hundred thousand rubles 00 kopecks)

Based on this application, the Ivanov spouses will receive a tax deduction in different shares; we explained above how to calculate how much each of them will receive.

Let's return to the application for a deduction; in addition to the application itself, there must be accompanying papers confirming the identity and fact of purchase of the sale. Let's look at the entire list of required documents in detail, carefully considering each one.

Form 3-NDFL tax return. This is a document confirming that you are a law-abiding tax payer. The Federal Tax Service is provided with the original, not a copy.
Passport (or a document replacing a passport) and TIN. Confirm your identity; without such confirmation, the Federal Tax Service will not accept documents. A high-quality photocopy of the first page of the passport and the page with the last registration at the place of residence is required; you must attach them to the application.
Form 2-NDFL - income certificate. This document must be requested from the employer; usually it is obtained from the accounting department; only the original can be provided to the Federal Tax Service.
Purchase and sale agreement or, as an example, equity participation. This is confirmation that there was a deal. Here you need to provide a copy that needs to be certified.
Payment documents, the fact of payment for the transaction, payment orders, payment receipts, even a receipt are suitable. This is confirmation that the transaction has been paid. A certified copy is submitted to the Federal Tax Service.
Certificate of state registration of property rights. All documents must already be reissued. A certified copy is provided to the Federal Tax Service. In the case of shared participation in real estate, it is not necessary to provide a certificate.
The act of acceptance and transfer of property. The deal is completed, the property is completely yours and this is the last of the necessary documents. You must provide a certified copy to the Federal Tax Service. Moreover, if the acquisition took place under a purchase and sale agreement, then the act is not a mandatory document to submit.

More on the topic: Offer - what is it in simple words understandable to everyone

When applying for a mortgage loan, the following documents are additionally submitted to the Federal Tax Service.

A loan agreement (mortgage agreement) with the bank where the loan was issued. Each sheet of the copy must be certified and bound.
A certificate of the interest rate that the bank has assigned for payment. Only the original is submitted to the tax office. Just in case, you can bring payment documents to confirm the fact of payment.

In case of acquisition of real estate by spouses in equal shares, a copy of the marriage certificate is added to all documents.

Tax deduction for mortgage

Let's take a look at the rules that apply in 2021 regarding mortgage lending and tax deductions. Here, a lot depends on the time when the right to tax relief was received:

From the beginning of 2014 - up to 3 million rubles.
Until the beginning of 2014 - up to 13% of mortgage costs.

It is worth noting that the amount of the deduction depends on the annual profit, so the total amount of payments is limited to the personal income tax paid. This means that in relation to a mortgage it is logical to receive a deduction in the year of registration of the remaining amount. There is no need to prepare paperwork for a financial institution every year, because it will take a lot of time. This is not relevant if the annual profit does not exceed the basic tax deduction. The best way is to prepare the papers from the beginning of the mortgage to the end of last year in the year when the balance is due, and then bring them together.

So, if a citizen has an annual income in 2021 equal to 2.6 million rubles, and the personal income tax amounted to 338 thousand rubles. The price of the apartment is 2.6 million, which allows you to return 260 thousand. Therefore, in 2018 it is allowed to submit an application for a deduction in relation to the balance.

Employer tax deduction

You can also submit an application for a tax deduction in your accounting department at your place of work, but you will still have to contact the tax office with a package of documents for the right to receive payment. Receiving a tax deduction from your employer has several advantages:

there is no need to wait for the end of the calendar day, documents can be submitted immediately after purchasing an apartment;
the package of documents is reduced, you do not need to request a 2-NDFL certificate and fill out a 3-NDFL declaration;
You will receive a full salary without deduction of personal income tax.

When does the right to deduction arise?

There is a stereotype that the right to deduction appears in the year when the contract was drawn up and signed by the parties, the mortgage was paid, or the buyer made payment under the executed agreement. But according to the law, such a right appears in the following cases:

In relation to the year when the acceptance certificate is completed and signed, if a DDU, an agreement on the assignment of rights to the DDU or a housing cooperative agreement was drawn up.
When an entry is made in the register of rights to a house (apartment). The exact number is indicated in the paper confirming ownership, as well as in extracts from the Unified State Register of Real Estate and the Unified State Register of Real Estate.

For which years is the deduction applicable when purchasing a home in 2018?

You can determine the possibility of obtaining a tax deduction in case of purchasing a house (apartment) in 2021 based on the following aspects:

The moment when such a right appears (this nuance was discussed above). As for the loss of the right to such a benefit, it is always relevant, regardless of the year the property was acquired (even if it was acquired in 2002, and the person applied for payment in 2018). The right to receive a deduction remains, but subject to limits specific to the year of purchase.
The possibility of obtaining a tax deduction appears from the year of obtaining the right to do so. It is not possible to issue payments for previous years that were before the year of entitlement. The category of exceptions includes pensioners who have access to payment of deductions for four years. For example, in 2021 they have the right to receive a deduction for profits for the previous four years, if such a right arose before the beginning of 2021.

Let’s say a person bought a home under the DDU in 2013, but the deed was drawn up and signed by the parties only four years later. As a result, receiving a deduction is possible only for 2021. Let's consider another situation. The contract was concluded in 2016. In the same year, the person received the right to own the object. This means that in 2018, the deduction is available for the past two years.

In 2021, tax deductions are available for three previous years. If we are talking about pensioners, this period is extended to 2014. If it was not possible to receive the entire payment, you can continue to apply for it every year.

If a person purchased an apartment under the DCT in 2006 and has owned it since 2007, but applied for the deduction only in 2018, he receives a tax refund for the period from 2015 to 2021. It will no longer be possible to return funds for previous years (this time is irretrievably lost).

Property tax deduction in 2021

In order to determine for which years you can receive a deduction in 2021, you need to consider the following:

It is necessary to clearly define the moment when the right to deduction arose. At the same time, it is important to understand that the right to deduction cannot be lost. Even if the property was acquired in 2013, but the citizen decided to apply for the deduction only in 2021, the right is not lost.
You can apply for a deduction starting from the year in which the right to it arose. And for the years that precede the year the right arose, no deduction is provided. But there are exceptions to this condition. These are pensioners, for them you can apply for a deduction based on the income of the previous 4 years. For example, if the right to a deduction arose before the beginning of 2021, then they can apply for a deduction for income received from 2014 to 2017.
You can apply for a deduction in 2021 based on income for 2015, 2021 and 2017 (for pensioners and 2014). If the deduction is not received in full, then you can apply for it in subsequent years.

Important! Even if an individual has not applied for a deduction to the tax authority, the right to it is not lost.

When to apply for a tax deduction?

Submission of documents for a tax refund is possible throughout 2018. If the transfer of papers is carried out in person to the Federal Tax Service, you should pay attention to the working hours of the tax service. Citizens planning to apply for a deduction must, by the end of April 2021, transfer papers on profits on which tax was not levied. In addition, you need to enter information into the declaration, attach a package of papers confirming the possibility of receiving a deduction, and then transfer it to the Federal Tax Service at your place of registration.

Next, the information is verified within 3 months. If a positive decision is made, the funds are transferred to the applicant’s account within a month. It is worth remembering that the countdown of these 30 days begins from the day the application is submitted.

When and for what period can you receive a deduction?

You can submit a declaration and return part of the money spent on the purchase of property only in the year following the year of purchase of the apartment . Exception! Pensioners have the right to receive a deduction for 3 consecutive years preceding retirement.

If you bought an apartment in 2021, you can receive the deduction in 2017. You have the right to submit a 3-NDFL declaration throughout 2021 (clause 2 of Article 229 of the Tax Code of the Russian Federation) .

If you buy an apartment in 2021, you will receive the deduction in 2017.

If you missed the moment of filing the declaration, then you have the right to do it later (even after selling the apartment), but you will only be able to receive a deduction for the last 3 years. For example, if you purchased an apartment in 2012 and did not receive a tax deduction, then in 2021 you will be able to refund your tax only for 2013, 2014 and 2015.

If you bought a home and received a property deduction before 2001, now, when purchasing a new property, you can re-apply for the deduction according to the new rules. More about “repeated” deduction

If you bought an apartment before 2001 and did not declare your right to a deduction, then starting from 2014 you have the right to a deduction in the amount of expenses actually incurred, a maximum of 600,000 rubles. (Letter of the Ministry of Finance dated January 27, 2014 N 03-04-07/2730).