Tax deduction on property of individuals

Today, a tax deduction for property will be presented to attention. This question is of interest to many residents of Russia. After all, part of the expenditure incurred in obtaining this or that property can be returned. The main thing is to have the confirmation of expenses, and also to meet some requirements. So what to look for in the first place? With what information should every citizen be acquainted who is interested in tax deductions for property? All this will be discussed later. Understanding this topic is not as difficult as it seems. Especially if you prepare in advance for the process.

Deduction is ...

The first step is to understand what a tax deduction is. It represents the return of part of the money spent on a particular property (or service). There are different types. For example, allocate social and property deductions.

The operation represents the return of a certain amount of money from the incurred expenses in one or another case. Tax deduction for property tax does not apply. That is, get a refund for taxes will not work. For expenses as such, such operations are not considered.

When is a deduction

To date, there are a number of cases where it is possible to return a part of the money for the property of a citizen. Remembering it is not as difficult as it seems. After tax deductions on the property of individuals are laid:

1. When buying an apartment or real estate. The main thing is that the buyer had all the documents confirming the payment of housing.
2. During the construction of the house. In this situation, it is important that it was about housing.
3. At any expenses for repair or furnish of an apartment / house where the citizen will live. Not the most common scenario.
4. If there is a mortgage. Then you can make a tax deduction for the acquisition of property. The operation is conducted with respect to mortgage interest.

There is nothing difficult or special in this. Accordingly, if a person buys an apartment, he has the right to repay some of the money. Not always, but in most cases there is such an opportunity.

When money can not be returned

And when can not return money for a particular property? Every citizen should also be aware of this. The very procedure of deduction is not so fast and simple. Therefore, the limitations are important.

A tax deduction can not be obtained if:

1. A property deduction has already been received in the maximum amount established. According to the established rules, citizens can use the refund only once. But there are exceptions. In practice, they are rare.
2. The deal was made with the participation of a close relative. That is, if a person buys property from relatives.
3. There is no official employment. In Russia, the lack of work imposes a ban on tax deduction for property.
4. The employer participated in the acquisition of real estate. For example, when a citizen receives part of the money to pay for an apartment from the boss.
5. During the transaction, state subsidies or maternity capital were used.

Accordingly, almost every taxpayer can claim a tax deduction for an apartment or a house. This is a common phenomenon. Only it is necessary to remember some restrictions.

Maximum deductions

Which ones? The thing is that you can only get a tax deduction for property once. In Russia, there is a maximum amount of money back to a citizen. If, with a particular deduction, it turns out to be less, the missing amount can be returned through other expenditure on property in the future. But as soon as the limit is exhausted, the operation will have to be forgotten forever.

Tax deductions for the property of individuals are limited to the value of the property of 2,000,000 rubles. You can return 13% of the cost of spending, but not more than 260 000 rubles. If the property costs more than 2 million, for example, 4, the refund will still be 260 thousand.

Several other restrictions apply to mortgage lending. In this situation, the maximum amount, from which you can take 13%, is 3 000 000 rubles. It turns out that they will not return more than 390,000 rubles to the recipient.

Accordingly, it is these restrictions that are in force in Russia today. The tax deduction for property in 2016 is made just like before. But what is required for this? Where to apply for the implementation of the idea?

Where to go

In fact, everything is not as difficult as it seems. Direct collection of documents takes a lot of time, but it's much easier to find a place where you can apply for a return of funds for an individual's property. No significant knowledge from a person is required.

Tax deduction for property can be issued:

• From the employer (an extremely rare case);
• In the tax authorities of a given locality;
• Through the MFC.

Increasingly popular are multifunctional centers. And through the employer, citizens act seldom. In practice, demand directly applies to the district tax authority.

For how much to serve

Some are interested in how long the citizen has to make a tax deduction for the property. 2016 is the period when serious changes in legislation took place in Russia. But at the same time, the changes did not touch upon issues related to the return of funds spent on property. So, there are similar rules, as in the past years.

That is, a citizen can apply for a deduction in a prescribed form for a deduction within 3 years from the moment of concluding a purchase and sale transaction. After the specified period of time, it will not be possible to issue a refund.

If repair or restoration is planned, it is possible to include the corresponding expenses in the cost of the property (it is important to have checks and receipts). Therefore, it is not necessary to hurry with the appeal to the tax service. But do not delay the process. It is desirable already from the moment of the conclusion of the transaction to collect a package of documents, which will be required for the implementation of the idea.

Documents when buying

Tax deductions for the property of individuals are made only after submission of a specific list of documents to the relevant body. A person can be denied if there are no papers. Therefore, the collection of the entire package should be recommended with particular attention. It is also worth noting that it is better to attach copies to all documents. Their absence, too, sometimes entails the refusal of the tax authorities to return part of the money spent on the acquisition of real estate.

If the citizen himself buys housing (without a mortgage), then the tax deduction for the property will require from the buyer:

• Tax declaration in the form of 3-NDFL;
• Certificate 2-NDFL (original, it is taken from the employer, the IP is processed independently);
• Identity card (passport);
• Application of the established pattern for the return of funds;
• A contract indicating the conclusion of a transaction (purchase and sale);
• A certificate of ownership of real estate (with a copy certified by a notary public);
• Acts of receipt and transfer of property;
• Payment documents (checks, receipts, extracts) addressed to the applicant;
• Account details, where to transfer the funds after the consideration of the application.

Nothing difficult or special. In fact, getting back some of the money spent on the property is not too difficult. The application is considered approximately 1,5-2 months. And about 1.5 months is spent on transferring money to the specified details. But this case extends only to the independent acquisition of housing, without any special features. The list of documents may vary. How exactly? It all depends on the situation.

Joint ownership

For example, there are more and more cases when spouses acquire housing in joint ownership. In this situation, the tax deduction for property is still laid, nobody cancels it. But the list of documents varies slightly. To the previously listed list of securities will have to attach:

• Marriage certificate;
• A statement establishing the definition of shares in a particular property;
• Birth certificates for all underage children (if they have their shares);
• Passports of minors (from 14 years).

If it is a question of refunds with the account of finishing works, it will also be necessary to bring checks and receipts for payment of certain expenses, a contract for repair work (if any), taxpayer's IDN. The last document is best represented always.

Mortgage

And what about when it comes to mortgages? A similar variant of the development of events is quite common in Russia today. A tax deduction for immovable property acquired under a mortgage agreement will require the applicant to additionally (in addition to the previously mentioned securities):

• Mortgage agreement;
• A certificate of interest withholding;
• Evidence of payment on mortgage.

References and extracts are provided in originals and copies. But checks and receipts need only bring original. In fact, it is not as difficult to assemble a particular package of documents as it seems, if the process is started in advance.

The procedure for applying to the MFC or the tax service

Now a little about what the procedure for applying to this or that organization in order to get a property tax deduction for the acquisition of real estate. If a person decides to independently apply to the tax authority or the MFC, he must follow the instructions:

1. Collect a certain list of documents. It will depend on the situation.
2. Make copies of papers. Certificates of property rights must be certified by a notary. Otherwise, the document will be considered invalid.
3. Fill in the application form. Served in one original. It is most often filled in by the MFC or in the tax itself.
4. Handle the package of documents in the appropriate organization.
5. Wait for a response from the tax office about the transfer of funds to the specified details. If a person is denied, the letter will necessarily indicate the reason for rejecting the request. You can bring missing papers and fix the situation. The answer from the tax service comes within a month from the date of submission of the application of the established sample.
6. Wait until the money is transferred to the account of the citizen.

That's all. This is how a tax deduction is obtained for property from citizens with independent treatment in the MFC or tax. And what if the person decided to use the return of funds directly through the employer? What is important for everyone to know about this process?

Through the employer

In fact, such a step greatly facilitates paper red tape, which is before every citizen before receiving part of the money spent on the property. What will you need from a citizen in this situation? Tax deduction for property tax will be facilitated, as:

• Do not need to take a certificate of income;
• The declaration on the form 3-НДФЛ is not required;
• The application is written in a simplified form.

What should a person do next? Depending on the situation, the citizen collects a certain package of documents (the full list was presented earlier). Then the application with the papers is submitted to the tax office. Once a response from the relevant service is received, you can apply to the accounting department for the employer with an application for a deduction, as well as with a tax notice-approval process.

What does this method give? From the moment of submission of the application of the established sample, the citizen will not be subject to income tax. In other words, the employer will stop charging 13% of the salary from the citizen. The process continues either until the moment of receiving the deduction in the established amounts, or until the end of the calendar year. Everything depends on what comes first.

As already mentioned, such a variant of the development of events is not used so often. Citizens prefer to receive a tax deduction for real estate from the tax authorities, and not from the employer. This is the most common scenario.

When selling

And you can make a tax deduction when selling property. This alignment is relevant when it comes to real estate, which is owned by less than 3 years. You can return a maximum of 250 000 rubles. It is for this amount that the amount of tax payable for a transaction with:

• Auto;
• Non-residential properties;
• Garages;
• Other subjects.

If we are talking about apartments, houses, cottages and rooms, then the maximum deduction is 1 million rubles. To get a refund you need:

1. To apply to the tax authority with the application of the established sample.
2. Collect and bring documents: ID card, 3-NDFL form, transaction documents.
3. Wait for the approval of the deduction.

This is all that every citizen should know. In fact, a tax deduction for property is a right that remains with a person. He can use it at any time. But without personal treatment, no one gives a tax deduction. The tax on the property of individuals is not so difficult to return.