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Published: December 28, 2017
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Buying a home is the biggest expense in life for most people. Therefore, the opportunity to save is extremely important
- Deduction and purchase of housing
- Limitations and features of payments for deductions Tax refund on mortgage interest on housing purchased before 2014
- Tax refund on mortgage interest on housing purchased after 2014.
- Income tax refund until 01/01/01.
Legal lawyer Alexander Menshikov answers:
Unfortunately, if you partially received a tax deduction for purchasing an apartment before 2014, you will not be able to receive the rest when purchasing a new home. The fact is that until January 1, 2014, the tax deduction could only be used for one residential property. Since January 1, 2014, changes have been made to the Tax Code of the Russian Federation, and from now on you can use the tax deduction for any number of real estate items until it is fully repaid.
However, the tax authority believes that the changes currently in force, giving the right to use a tax deduction, do not have retroactive effect. The courts adhere to the same position. The retroactive effect of tax law changes must be expressly stated in those changes to the Tax Code. The changes on the use of tax deductions for several real estate properties that came into force in 2014 do not contain such an indication. Therefore, you can no longer use the tax deduction when purchasing a home.
However, if you are married, for example, and your spouse did not use the tax deduction before 2014, she can claim it now.
Does selling an apartment prevent you from getting a tax deduction?
How can I get a mortgage so that both my husband and I receive a tax deduction?
Property deduction according to the new rules
Article 220 of the Tax Code of the Russian Federation was amended by Federal Law No. 212-FZ of July 23, 2013. The changes concern the procedure for providing property deductions for personal income tax. We have prepared a brief overview of the most significant changes regarding the property deduction for personal income tax.
Federal Law No. 212-FZ of July 23, 2013 introduced significant changes to the Tax Code, which raised a lot of questions among the population. The Ministry of Finance has already published many clarifications regarding the new procedure for providing property deductions. But first things first.
The new rules are effective from January 1, 2014
Before we look at the main changes, let us recall that the new version of Article 220 of the Tax Code, which establishes the procedure for providing deductions for personal income tax, applies only to those legal relations that arose from the beginning of 2014. What does it mean?
This means that only those citizens who:
- ownership of the purchased housing was registered after January 1, 2014;
- Until 2014, they did not receive a property deduction for personal income tax when purchasing a home.
In other words, if you did not apply for a property deduction to the tax office before the beginning of next year, that is, you did not use your right to receive the specified deduction, and became the owner of an apartment in 2014, you will be provided with a personal income tax deduction according to the new rules (letters from the Ministry of Finance dated September 20 .2013 No. 03-04-05/39121, No. 03-04-05/39119).
What if the apartment was purchased in 2013?
If the apartment was purchased in 2013, the property deduction will be provided in the following order:
The apartment was purchased and registered in 2013
In this case, the property deduction for personal income tax will be provided according to the current, that is, according to the “old” rules.
The apartment was purchased in 2013, but ownership was registered in 2014
In this case, the property deduction will be provided according to the new rules.
Property deduction for personal income tax will not be provided again
The country's financial department, in a letter dated September 4, 2013 No. 03-04-05/36358, explains the possibility of re-obtaining a property deduction when purchasing an apartment in accordance with the new procedure.
The deduction will not be provided again, financiers emphasize, since Article 220 of the Tax Code, paragraph 11, establishes a direct ban on the repeated provision of the deduction.
Thus, if you applied for a property deduction earlier and bought a new home in 2014, the balance of the personal income tax deduction will not be provided to you again.
If the deduction was received before 2014, it will not be provided again.
Receiving a property deduction
Now the property deduction is provided only once, even if the deduction is received in a smaller amount than the established limit of 2 million rubles. Starting next year, property deductions for personal income tax when purchasing an apartment will be available more than once.
So, if, when purchasing a home, a deduction was provided for an amount less than 2 million rubles, the unused balance of the deduction can be received when purchasing the next home. That is, the deduction will be provided until the amount reaches the established limit (letter of the Federal Tax Service of Russia dated September 18, 2013 No. BS-4-11/ [email protected] , letter of the Ministry of Finance of Russia dated September 13, 2013 No. 03-04-07/ 37870).
Is it possible to receive the remainder of the property deduction in 2014?
According to the new rules, the rest of the property deduction for housing purchased before 2014 will not be available.
If you bought an apartment before 2014, worth less than 2 million rubles, when purchasing the next property after 2014, the remainder of the property deduction will not be provided (letters from the Ministry of Finance dated 08/09/2013 No. 03-04-05/32329, No. 03-04- 05/32362, No. 03-04-05/32333).
The rest of the deduction received before 2014 cannot be received on the next purchase.
What if the home was purchased before 2014, but the deduction was not received?
If the housing was purchased before 2014, the property deduction was not used; when applying for the deduction in 2014, it will be provided according to the old rules (letter of the Ministry of Finance dated 08/09/2013 No. 03-04-05/32324).
Parents will be able to receive a deduction for children
In the same letter, officials remind that parents (adoptive parents, guardians, trustees) will be able to receive a personal income tax deduction if they purchase housing for minor children. However, the total share of the deduction cannot be more than 2 million rubles.
The parent will receive the deduction in full and the child retains the right to the deduction.
That is, parents of children who have not reached the age of majority, when purchasing an apartment in 2014, will receive a property deduction in full. If an apartment for a child was purchased in the previous period, then deductions will be provided according to the old rules. The child’s right to receive a property deduction is not lost in the future.
Tax deduction for mortgage interest under new rules
Starting next year, changes will also affect interest on mortgage loans.
Let us remind you that currently there are no restrictions on the amount of mortgage interest paid; a tax deduction is provided for the entire amount of interest.
For a mortgage received next year, namely for interest, a limit has been set, the amount of which will be 3 million rubles. Thus, if in 2014 you buy an apartment with a mortgage, a property deduction for interest can be provided within three million rubles.
What if the mortgage was obtained in 2013 and interest is paid in 2014?
If interest is paid on a mortgage received in previous years, the amount of the property deduction will not be limited. That is, borrowers will still be able to return 13% of the entire interest amount as they are paid. This is stated in the letter of the Ministry of Finance dated 08/09/2013 No. 03-04-05/32336.
The amount of deduction for interest on a mortgage received before 2014 will not be limited.
In other words, the maximum amount of 3 million rubles applies to interest on a mortgage received in 2014.
In the same letter, the Ministry of Finance reminds that the property deduction for interest paid on a mortgage loan can be obtained only once. This procedure is in effect now and will continue to be in effect in the future.
We would like to remind you that the tax deduction for mortgage interest is provided once, since the mortgage is directly related to the apartment for the purchase of which the loan was received. If you bought an apartment and did not claim a property deduction for interest, when purchasing another apartment, a deduction for mortgage interest will not be provided. But this is now.
In accordance with the new edition of Article 220 of the Code, the deduction for expenses and the deduction for mortgage interest were divided. Now, these deductions are regulated by various subparagraphs of paragraph 1 of Article 220. So, the Federal Tax Service in a letter dated September 18, 2013 No. BS-4-11 / [email protected] explains that from 2014 citizens will be able to receive a deduction for expenses on the purchase of housing and a deduction on interest paid on a targeted loan received for the purchase of the same property, or for the purchase of another property.
Property deduction for working pensioners
Currently, only pensioners who do not work can receive a property deduction when purchasing a home. This condition is contained in Art. 220 Tax Code of the Russian Federation. In accordance with the existing procedure, only non-working pensioners can transfer the balance of the property deduction to previous periods.
Every pensioner will be able to receive a property deduction
Starting next year, a new procedure will be in effect, according to which employed pensioners will be able to transfer the property deduction to previous years. This is stated in the letter of the Ministry of Finance dated 08.08.2013 No. 03-04-05/32020.
Pulp and Paper Plant Parus November 8, 2013
Similar materials
Property tax deduction for the sale of housing - a brief overview of the explanations of the Ministry of Finance
Property deduction when purchasing an apartment in common shared ownership
Review of clarifications from the Ministry of Finance on property deductions when purchasing a home
Documents for obtaining property and social deductions for personal income tax
Property deduction when selling property in 2013
For what period can I get a tax deduction?
No restrictions on terms of receipt
There is no
property deduction , so you can use it absolutely at any time, even if the real estate was acquired a long time ago.
The most important thing is to have documents confirming ownership and expenses associated with the acquisition of real estate.
It is also important to note that income tax can only be refunded for the last three years.
. For example, if an apartment was purchased in 2011, then in 2021 you can only return money for 2014, 2015 and 2021.
The entire unused balance of the property deduction is carried over to the next year, so it can be returned until the entire amount is exhausted.
Real estate before 2014
Since the changes were adopted in 2014, they apply only to real estate acquired after this date. If the property came before it, then the rules that were in force earlier apply. Then compensation was paid only once in an amount of no more than 2,000,000 rubles, of which 13% is 260,000 rubles. If it came out to less than the designated amount, it was impossible to get more in another case.
Situation No. 1
Ivanov G.I. purchased real estate in 2010 for 500 thousand rubles. The benefit amounted to 65 thousand rubles at that time. If he plans to buy another property in 2021, then he cannot count on payment again, since this right has already been used before 2014.
No division
But previously the payment was uniform. This means that it was also used to pay off the loan. The main limitation was the only real estate in respect of which it was used.
Situation No. 2
Sidorov V.A. Before 2014, he acquired two properties: the first in 2011, and the second in 2012. If under the first one he received a benefit, then under the other he will be refused.
But if housing was purchased before 2014, but the benefit was paid only for acquisition costs, then in the case of a mortgage for another apartment, he has the right to count on compensation for paying interest. The maximum amount of its application will be 3,000,000 rubles, and the payment will be 390,000 rubles.
How is a property tax deduction provided to pensioners when purchasing an apartment?
If the pensioner is a working person with a “white” salary, then there will be no problems with tax refunds. Like other citizens of our country, he will be able to return from the budget the personal income tax paid on wages. But what should non-working pensioners do in such a situation?
The pension is not subject to personal income tax, therefore, it will be impossible to return it from the budget. The opportunity to apply a deduction appears from the year in which ownership of the apartment/share in it arose.
However, if a pensioner does not have income taxed at 13%, then he can transfer the balance of the property deduction to previous tax periods, but no more than 3 (letter of the Federal Tax Service of Russia dated July 19, 2013 No. ED-4-3 / [email protected] ). Moreover, this transfer rule also applies to working pensioners.
Example 3
Alexander Vitalievich Steklov retired in mid-2014. Before this, he worked and received wages taxed at a rate of 13%. After his retirement, he did not work. In 2021 I purchased an apartment. In the same year, I submitted an application to the Federal Tax Service for the return of the property deduction.
Solution:
Alexander Vitalievich can transfer the balance of the deduction to the previous year of purchase of the apartment for a 3-year period, namely to 2013–2015 (letter of the Ministry of Finance of the Russian Federation dated February 12, 2015 No. 03-04-05/6179, Federal Tax Service of the Russian Federation dated August 29, 2012 No. ED-4 -3/ [email protected] ). However, he does not have to submit a zero declaration for 2015 (when there was no income taxed at 13%).
Also learn about innovations that affect working pensioners from our material “New in the legislation on pensions for working pensioners” .
Receive additional payment used before 2014
So, if the housing was purchased before 2014, and the citizen managed to take advantage of the compensation, then even if the amount is small, the right to apply a second time does not arise. After all, then other rules were in force, according to which payment for real estate could only be used once.
Situation No. 5
Zhmelev K.N. purchased real estate in 2007 for 500 thousand rubles. They paid 65,000 rubles for it. However, later, in 2021, he became the owner of the property for RUR 6,000,000. and contacted the tax office to receive additional compensation. But the request was refused, since he used it until 2014.
How to get a property deduction through your employer
By law, a property deduction can also be obtained through an employer. In this case, income tax at a rate of 13% will no longer be withheld from wages.
The main feature of this method is that to receive a deduction you do not need to wait until the end of the year (as is the case with the tax office), and you can apply for a deduction immediately after the right to it arises.
The procedure for obtaining a property tax deduction through an employer occurs in 3 stages:
The first stage is collecting the necessary documents
The list of documents for obtaining a deduction through an employer coincides with the documents that are required to obtain a deduction through the tax service (see above).
But there are the following differences:
- There is no need to fill out a tax return in Form 3-NDFL.
- You do not need a certificate in form 2-NDFL.
- The application for a tax deduction is filled out using a different form ().
The second stage is the transfer of collected documents to the tax authority
After all the documents have been collected, they must be submitted to the tax service at your place of residence. The methods for transferring documents are the same as in the case of receiving a deduction through the tax service (see above).
After 30 days (allotted for document verification), a notification
, confirming the right to receive a deduction from the employer.
