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Changes in legislation
Income from the sale of real estate is still subject to tax at 13%. Persons who own an apartment longer than the period specified by law are exempt from it. This parameter has been adjusted since this year.
Previously, the rule was that an owner who owned a home for more than three years did not pay income tax when selling it. From this year, the seller must own the property for at least 5 years. Only after this period have expired are citizens exempt from paying personal income tax.
Deadlines for applying for a tax deduction when purchasing housing
The legislation does not provide for restrictions on the time limits for receiving a deduction (clause 1, clause 3, clause 9, article 220 of the Tax Code of the Russian Federation).
At the same time, as a general rule, declarations in form 3-NDFL to obtain tax deductions can be submitted for the three previous years (clause 7 of article 78 of the Tax Code of the Russian Federation). That is, in 2021 you can file returns for 2021, 2021, 2021; in 2021 – for 2017, 2021, 2021.
If the return is filed only to obtain tax deductions, without declaring income on which income tax must be withheld, it can be filed at any time during the year.
If there is income on which income tax is required to be withheld (for example, when renting out housing, selling an apartment that was owned for less than the minimum period established by law, etc.), submitting a 3-NDFL declaration is an obligation. In this case, you must report your income before April 30 of the year following the expired tax period (clause 1 of Article 229 of the Tax Code of the Russian Federation). Otherwise, you will face a fine.
Terms and territories of innovations
The legislation of the Russian Federation assumes the transition to a new system of taxation of property of citizens by 2021. The change will affect all subjects of the country. A gradual reform is planned so that the regions have time to independently determine the exact date of the transition.
Until 2021, the authorities of the constituent entities of the Russian Federation have the right to choose the method of calculating real estate taxes: according to inventory valuation (old method) or cadastral valuation (new). Starting from this date, all regions are required to use only the second method.
There is a five-year tax transition period, during which the tax burden will increase gradually. In addition, reducing coefficients and benefits have been introduced. The gap between the old and new amounts will be reduced by 20% annually.
In those regions of the Russian Federation where a new method for calculating personal property tax will be introduced in 2020, the population will receive receipts with 100% of the collection amount only in 2025.
Tax on the sale of an apartment owned for less than 3 years.
How to get a double tax deduction, read here.
Can a husband receive a tax deduction if the apartment is registered to his wife? Read the link:
If the subject does not make an early transition to the new system, then from January 1, 2020 it will be implemented by default. Some of them have already switched to calculating tax based on cadastral value. Those undecided include Crimea, Dagestan, Kursk, Arkhangelsk regions, etc.
The new system began to be put into practice in Moscow, the Kemerovo, Moscow and Amur regions already in 2014. Every year the number of constituent entities of the Russian Federation participating in the reform increased. 13 regions joined them in 2021.
Attention! Our qualified lawyers will assist you free of charge and around the clock on any issues. Find out more here.
On the reform of the tax system
The idea of amending Russian tax legislation has been discussed by the Russian government for quite some time. The purpose of these intentions was, first of all, to legalize the real estate market. As mentioned earlier, the Russian authorities began to implement the idea of reforming domestic legislation regulating taxation in 2021. The first area of taxation to undergo reforms was the real estate sector.
Changes regarding the real estate taxation scheme were manifested in a change in the methodology for calculating real estate tax
If before the reform the key value for calculating tax amounts was the inventory value, now the cadastral value has become the key indicator.
At the same time, the government decision provides for some adaptation holidays, the duration of which will be five years. During this time, the tax rate will increase by 20% per year. The creation of this transitional stage is due to the realities of the modern Russian taxation system, in which the cadastral valuation exceeds the inventory value by ten times.
Based on this, an immediate abandonment of the old system and the introduction of a new one could provoke, to put it mildly, indignation among real estate market participants. It is for this reason that the implementation of the above-mentioned changes in the domestic taxation system was decided to be softer, gradually.
The reason for choosing the cadastral valuation as the main indicator used to calculate the amount of real estate tax was its maximum proximity to the market price for real estate.
However, if we take into account the huge difference between the amounts of inventory valuation and cadastral valuation, it turns out that now property owners will be obliged to pay a much larger amount of their hard-earned rubles to the state budget than before.
To bring greater clarity to the issue of changing the amount of property tax, we will give a simple example.
Let's say we own a two-room apartment. Before the reformatory changes in the method of calculating non-real estate taxes, we would have had to fork out to pay the tax that our “kopeck piece” is subject to in the amount of five hundred rubles.
It seems like not much money. The situation for us will change dramatically with the onset of 2021, when the transition period ends, and with it the tax breaks. And then we will have to pay a tax for our two-room living space, calculated according to the new method, the amount of which will already be equal to an impressive five thousand rubles.
According to the new tax legislation, individuals will be required to pay a tax fee in the amount of 0.1% of the cadastral price of the real estate they own. In this case, the following categories of real estate will fall under this type of taxation:
- rooms, apartments and other premises related to the housing stock;
- garages and parking spaces;
- residential properties under construction;
- complexes that contain at least one premises belonging to the housing stock;
- buildings for utility purposes, the area of which is up to 50 square meters and which are located on summer cottages or in areas intended for gardening.
Calculation and benefits for property tax for individuals
The tax on real estate owned by citizens is a local tax. The income from it goes to the regional treasury, so its authorities can set the interest rate themselves.
The state only sets the maximum and minimum values for a given value.
The property tax rate for citizens of the country depends on the estimated value of real estate:
- < 300,000 – maximum 0.1%;
- 300,000 – 500,000 – no more than 0.3%;
- > 500,000 – up to 2%.
The inflation rate in 2021 was 1.45. It is used when calculating property tax for individuals.
The legislation provides for tax benefits for certain categories of citizens: there are fifteen of them in total.
According to Article 407 of the Tax Code, the benefit applies only to one piece of real estate of the same type, if it is not used to make a profit through entrepreneurial activity.
Important! Property taxes are not paid at all:
- citizens of retirement age;
- disabled people of the first and second groups;
- heroes of the USSR and the Russian Federation;
- military personnel.
Tax breaks are also provided for other taxpayers. All Russians who own real estate have the right to take advantage of the following benefits.
According to paragraphs 3-5 of Article 403 of the Tax Code, the following are not taxed:
- 10 square meters of room;
- 20 square meters of apartment;
- 50 square meters of house.
Help from a lawyer
Legal assistance. Photo No. 5
It is quite difficult for ordinary citizens and other persons incompetent in this area to understand tax issues.
There are many subtleties in tax legislation, ignorance of which can lead to adverse consequences. To ensure that the tax office does not refuse to return part of the personal income tax paid, it is important to correctly draw up all the documents and follow the procedure.
An experienced lawyer or advocate, having assessed the situation, can give oral or written advice, help in preparing documents, and obtaining the necessary certificates.
The biggest problem for many is filling out tax returns. But for a qualified, experienced lawyer this is not very difficult. In addition, he can provide services for submitting a declaration and the entire package of documents to the tax office.
For more information about the list of documents for tax refund when purchasing an apartment, watch the video:
See also Phone numbers for consultation 08 Dec 2021 kasjanenko 1044
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Discussion: 3 comments
- Albina says:
08/18/2019 at 18:51When purchasing 1 apartment, I received a personal income tax refund on the apartment amount of 200,000 rubles. This refund does not amount to 2,000,000 rubles. When purchasing 2 apartments, can I increase the personal income tax amount to 2,000,000 rubles?
Answer
- Irina says:
05/15/2020 at 00:39
When buying an apartment for our daughter, we did not pay any tax, but the seller had to pay sales tax. He, in turn, bought it himself and then sold it within one year, and as far as I know, he had to pay tax on the difference between two prices, and he sold us an apartment 150 thousand more expensive, because he renovated it and bought a clean one finishing. It turns out that he had to pay tax on these 150 thousand.
Answer
- Elena says:
10.24.2020 at 11:41
Hello, I haven’t worked for half a year at the moment, I’m buying an apartment, can I get a tax deduction back?
Answer
What amount is not taxed?
If the transaction amount does not exceed one million rubles, then the seller is not required to pay income tax on the funds received. If the price is higher than the specified value, then when calculating the taxable base, a deduction of 1 million rubles is made from it.
Please note! The buyer of real estate in the Russian Federation is exempt from paying personal income tax on the funds spent. The maximum tax-free amount is 2,000,000 rubles.
Having purchased an apartment, the buyer submits a tax return and an application for a tax deduction. He will receive back 13% of the funds paid, a maximum of 260,000 rubles. Each citizen can take advantage of this opportunity only once.
Tax deduction amount
A tax deduction is provided in the amount of actual expenses incurred for the construction or purchase of housing, but not more than the established maximum amount.
According to paragraphs. 3 p. 3 art. 220 of the Tax Code of the Russian Federation, the actual expenses for new construction or the acquisition of a residential building or a share in it on the territory of the Russian Federation may include the following expenses:
- costs for the development of design and estimate documentation;
- expenses for the purchase of construction and finishing materials;
- expenses for the purchase of a residential building or a share in it, including those not completed construction;
- expenses associated with construction work or services (completion of a residential building or a share in it that has not been completed) and finishing;
- costs of connecting to electricity, water and gas supply and sewerage networks or creating autonomous sources of electricity, water and gas supply and sewerage.
The actual costs of purchasing an apartment, room or share in them may include the following costs (clause 4, clause 3, article 220 of the Tax Code of the Russian Federation):
- expenses for the acquisition of an apartment, room or share in them or rights to an apartment, room or share(s) in them in a house under construction;
- expenses for the purchase of finishing materials;
- expenses for work related to the finishing of an apartment, room or share in them, as well as expenses for the development of design and estimate documentation for finishing work.
Acceptance for deduction of expenses for the completion and finishing of an acquired residential building or finishing of an acquired apartment, room, as well as shares in them is possible if the agreement on the basis of which such acquisition was made provides for the acquisition of an unfinished residential building, apartment, room or rights to an apartment, a room without decoration (clause 5, clause 3, article 220 of the Tax Code of the Russian Federation).
Not the entire amount of expenses is refundable, but 13% of this amount, i.e. Personal income tax.
The maximum amount of expenses for new construction or purchase of housing, from which a tax deduction will be calculated, is 2 million rubles. (Clause 1, Clause 3, Article 220 of the Tax Code of the Russian Federation).
Who should pay property tax
Personal property tax is paid every year.
A notice with this requirement is sent to the owners:
- individual residential buildings;
- garages and parking spaces;
- rooms and apartments in MKD;
- unified real estate complexes;
- unfinished objects;
- other buildings and structures.
The residential property tax will also apply to garden houses if they meet certain conditions. This is done to simplify the system. It doesn't matter whether they are suitable for year-round use or not.
According to Federal Law 401 of November 30, 2021, houses built on plots with VRI are considered residential: gardening, individual housing construction, private household plots.
As for attic and basement spaces, roofs, elevators, stairwells and other common spaces, they are not subject to taxation.
Watch the video. Real estate tax calculation:
Tax on the sale of an apartment received as an inheritance
If the owner of an apartment who inherited it decides to sell it in 2018, he will be required to pay income tax.
They will not take 13% from him if the tenure period exceeds three years. The sale of real estate that the owner owns for less than a specified period is considered a commercial transaction for the purpose of making a profit.
An owner who decides to sell one apartment and buy another must correctly calculate the financial side of the transaction. This primarily applies to persons who have owned real estate for less than three years.
Remember! When paying personal income tax, the basis is not the difference in the cost of two objects, but the proceeds from the sale. Only correct calculations will help you avoid being in the red after transactions.
This does not apply to pensioners and disabled people who are exempt from paying tax.
Procedure for paying tax in case of sale of real estate in 2018
According to the law, when selling real estate, citizens are required to pay 13% on an amount that exceeds 1 million rubles. Consequently, the tax is not calculated on the entire cost of the object being sold. In this case, the difference between the value of the property and 1 million rubles is subject to taxation.
This calculation system is valid only for residents of the country; non-residents will be required to pay 30% of the value of the property being sold. Further, Russian citizens have the right not to pay tax if they have been owners for more than 3 or 5 years (depending on the date of registration of property). However, even in case of tax exemption, it is still worth drawing up a declaration for the Federal Tax Service.
The declaration must be submitted no later than April 30 of the year following the execution of the purchase and sale transaction. It is worth remembering that tax officials check the period of ownership of the property according to the date indicated in the certificate of ownership. The tax itself must be paid no later than July 15 of the following year.
According to cadastral value
The tax base for calculating the cadastral value is taken from the Unified State Register of Real Estate. The data is viewed as of January 1 of the year for which the tax is determined. If the object is entered into the register later, then look at the information as of the date of entry into the Unified State Register.
Changes in cadastral value during the year do not affect the tax base. The exception is the correction of a previously made error in the valuation of real estate.
Attention! The taxable cadastral value is reduced in proportion to the deductible area:
- room. 10 square meters are subtracted from the area and the tax base is calculated;
- apartment. 20 square meters are subtracted from the area and the tax base is calculated;
- house. 50 square meters are subtracted from the area and the tax base is calculated;
- single real estate complex. RUB 1,000,000 is deducted from the cadastral value.
Legislative acts of constituent entities of the Russian Federation may increase these values.
What is a social deduction when buying an apartment and why is it needed?
Today it is possible to return the funds that the apartment owner paid to the state for the purchase of property in the form of income tax - 13 percent. This can be done if the cost of housing does not exceed 2 million rubles. The maximum refund amount is 260 rubles. It was installed back in 2008 and remains in place to this day. For apartments purchased with a mortgage, the deduction will be 786.7 tr. rubles Many people call the social deduction a generous compensation from the state.
However, it must be borne in mind that receiving a social deduction is only available in the following cases:
- this is your first home,
- you did not buy an apartment from a close relative.
There are no restrictions on tax deductions for apartments purchased with a mortgage.
The social deduction can be received after the end of the year for which this deduction will be carried out. This is done at the tax office. You can receive a deduction from your employer throughout the year without paying additional tax. To receive a social tax deduction, you will need to provide the following documents (approximate list):
- copy of the passport,
- TIN,
- current account number,
- contracts of purchase and sale, or shared construction,
- certificate 2-NDFL,
- certificate of registration of rights,
- deed of transfer of ownership,
- if the apartment was purchased on credit: a loan agreement and a certificate from the bank about the interest paid,
- application for a deduction in writing,
- 3-NDFL,
- a list of all documents provided.
There is also a list of expenses that are included in the tax deduction:
- costs for creating design documentation,
- purchase of building materials,
- workers' compensation,
- connection to all necessary communications.
If the apartment was purchased on the secondary market or construction and repairs are carried out at the expense of the employer, then all these costs are not taken into account.
Who can count on social tax deduction:
- Citizens of the Russian Federation who stay on the territory of the state for at least 183 days in a row and receive an official income not lower than the subsistence level. These citizens do not include the officially unemployed.
- Pensioners who have an official income above the subsistence level and pay tax on it.
- Children under 18 years of age. The official representative receives the deduction for them.
How to calculate the tax amount
In order to avoid a sharp increase in the tax burden in connection with the new principles for calculating property tax for individuals, the state has introduced a number of coefficients.
They increase every year during the transition period. Residents of the country will thus gradually get used to the new system.
The coefficient in 2021 was 0.6, so citizens paid only 60% of the total calculated tax to the treasury. In 2021, its value will increase by another 0.2. Consequently, Russians will pay 80% of the full amount, i.e. one third more than in the previous billing period.
Important! The tax calculation algorithm is as follows:
- the cadastral value is reduced by the amount of the tax deduction. We'll tell you more about it below;
- the result is multiplied by 0.8 (coefficient in 2021);
- the resulting value is multiplied by the tax rate, which in most cases is equal to 0.1%.
Let's look at each point in more detail.
Tax deduction is a benefit for paying for housing provided to all citizens. The more modest the housing, the greater the discount the owner receives. The point is that the state makes it possible to pay not for the entire area.
There is a certain minimum that is not subject to tax. These are rooms up to 10 square meters, apartments up to 20 and houses up to 50. For example, you have a private house with an area of 60 m2. Property tax on it will be charged on 60 - 50 = 10 m2.
What else will change by 2021
Members of the Government of the Russian Federation have developed a number of changes that will affect transactions with real estate.
Now, in order to, say, sell a building, for example, a garage, a house or an apartment, and avoid paying a tax rate of 13%, the seller must own the real estate he is selling for five years (for comparison: previously this period was three years ). This innovation applies to real estate acquired before January 1, 2016.
At the same time, buildings that citizens became owners of as a result of:
- privatization process;
- receiving an inheritance;
- validity of the gift agreement and lifelong maintenance.
The purpose of prolonging the mandatory period of ownership of real estate was explained by government officials as the need to introduce such a transition period to minimize the number of transactions regarding housing stock concluded for the purpose of fraud.
However, in this regard, real estate market experts express the opinion that such actions by the authorities may provoke a reverse effect: in conditions of complications in the process of transferring ownership of real estate, most real estate transactions will be carried out “in the shadows.”
One cannot ignore another significant innovation that promises to affect all Russians. According to the new rules, owners of real estate are required to personally submit information about the property they own to the tax authorities. Those who violate the norms of this requirement will be punished with a fine of 20% of the amount of the collected tax payment.
As a result, in 2021, all citizens of the Russian Federation will be required to pay real estate taxes in accordance with new requirements, which, by the way, not everyone likes. Government officials believe that the tax innovations they are introducing will contribute to the emergence of the real estate market from the “shadow”. It is not yet clear what the real result of the tax changes will be. As they say: “We’ll wait and see.”
