Application for a property tax deduction

Here is an application form for property, social, standard and investment tax deductions when filing a 3-NDFL declaration with the inspectorate.

To fill out the payment details fields for the correct transfer of funds, the article on how to find out your account number and bank details will help you.

The relevant articles will help you with the remaining columns of the application, such as the Federal Tax Service number (which you will contact) and the TIN number, which you can read by following the links.

Types of property deductions

Property deductions applied to income taxed at a rate of 13% are discussed in Art. 220 Tax Code of the Russian Federation. It talks about 4 types of deductions:

• arising in the event of the sale of property (subclause 1 clause 1);
• equal compensation for the value of property sold by the taxpayer (subclause 2, clause 1);
• in relation to the costs of purchasing housing (subclause 3, clause 1);
• on interest for a loan taken for the purpose of purchasing a home (subclause 4, clause 1).

The question of applying for a deduction arises in relation to the last 2 types.

Deductions when buying a home

Deductions related to the costs of purchasing housing are most in demand. They are divided:

• for direct purchase costs;
• contributions to construction, including the purchase of land for it;
• interest on targeted loans taken for the purchase or construction of housing.

These deductions are limited to the following amounts:

• 2 million rub. for purchase or construction expenses, and the deduction can be used in full, and if the amount of costs for one object is insufficient for this, then in relation to several objects (subclause 1, clause 3, article 220 of the Tax Code of the Russian Federation);
• 3 million rub. for interest on a loan (clause 4 of Article 220 of the Tax Code of the Russian Federation), but such a deduction is applicable only to 1 object (clause 8 of Article 220 of the Tax Code of the Russian Federation).

Both types of deductions can be used simultaneously for the same object and also apply to situations of acquisition of property in favor of owners under 18 years of age by their parents or guardians (clause 6 of Article 220 of the Tax Code of the Russian Federation). But they are not applicable for expenses paid not by the taxpayer himself, by budgetary funds or maternal capital funds, as well as for transactions with interdependent persons (clause 5 of Article 220 of the Tax Code of the Russian Federation). You cannot get them a second time (Clause 11, Article 220 of the Tax Code of the Russian Federation).

Acquisition is possible in shared ownership. This does not prevent each of the owners from taking full advantage of both deductions in the amounts established by law.

Possible mistakes and ways to avoid them

One of the most common reasons for the tax office to refuse a tax refund is an incorrectly completed application. To avoid mistakes, when drawing up an application, we recommend that you adhere to the following recommendations:

• Do not provide unnecessary or optional information.
• Write in legible handwriting, without erasures or strikethroughs.
• Don't forget to put the date and signature.
• The signature must be “live”, that is, written by hand.
• Specify the number of the tax authority where the application is being sent.

IMPORTANT: All information provided must be reliable, since the application will undergo a desk audit at the tax office.

Expenses taken into account in the deduction

A residential property (or part of it) can be purchased ready-made or unfinished, built through equity participation in construction or on its own. For deduction, it is legitimate to take into account all costs directly related to its occurrence. In addition to the funds directly paid for the acquisition of an object or a share in construction, the following expenses can be taken into account:

• for design and budgeting;
• construction and completion;
• finishing (materials and work);
• connection to general networks or construction of local sources of water, gas, heat, electricity, as well as autonomous sewerage.

Costs for completion and finishing are taken into account only if the property was purchased unfinished or the contract provides for the transfer of housing to the owner without finishing (subclause 5, clause 3, article 220 of the Tax Code of the Russian Federation).

Documents giving the right to deduction

A person claiming a deduction must collect all documents certifying the fact of acquisition of property and the amount of expenses incurred on it:

• certificates of ownership (land, house, apartment, room, share);
• purchase agreements, equity participation agreements, acceptance certificates;
• when purchasing for children or wards - documents about birth or guardianship;
• mortgage or targeted loan agreement;
• payment documents of any kind for all expenses.

This set, in terms of the volume of costs incurred, should be as complete as possible, since adjustments to the amount of deductions already declared for a specific object (except for the amount of interest on the loan) are not provided (letter of the Ministry of Finance of Russia dated June 11, 2014 No. 03-04-05/28176) . An exception is the situation of paying for housing in installments (letter from the Federal Tax Service of Russia dated November 12, 2014 No. BS-4-11 / [email protected] ).

For a complete list of necessary papers that must be prepared when forming a property deduction, see here.

When can you start applying the deduction?

The question of obtaining a deduction will become relevant when the property is registered for a residential property or the taxpayer receives an acceptance certificate for a finished shared construction project. Until this moment, neither the registration of the right to land allocated for development (subclause 2, clause 3, article 220 of the Tax Code of the Russian Federation), nor the costs of paying interest on a mortgage (clause 4, article 220 of the Tax Code of the Russian Federation) do not allow one to exercise the right to deduction.

You can start applying the deduction in 2 ways:

• In the year when the right to a deduction appeared (without waiting for the end of the year), submit the package of documents collected on it to the Federal Tax Service at your place of permanent residence and a month later pick up a notice of the right to a deduction there to receive it from your employer already in the current year (p 8 Article 220 of the Tax Code of the Russian Federation). The form of this notification was approved by order of the Federal Tax Service of Russia dated January 14, 2015 No. ММВ-7-11/ [email protected] It is intended for issuance to a specific employer, whom the taxpayer will indicate in the application.
• Wait until the end of the year in which the right to deduction arose and submit a set of documents on it to the Federal Tax Service along with the 3-NDFL declaration for the corresponding year (clause 7 of Article 220 of the Tax Code of the Russian Federation). After checking the documents and declaration, the Federal Tax Service will return the tax accrued on it as a refund, and for the remaining amount, if desired, the taxpayer will give a notification of the right to a deduction for its use at the place of work. The declaration is submitted together with 2-NDFL certificates from all employers. Its verification will take 3 months (clause 2 of Article 88 of the Tax Code of the Russian Federation), and another month will be spent on procedures for tax refund (clause 6 of Article 78 of the Tax Code of the Russian Federation) and issuing a notification of the right to deduction (clause 8 of Article 220 of the Tax Code RF).

For information on how to fill out the declaration correctly, read the article “Sample of filling out the 3-NDFL tax return.”

Thus, the deduction begins to be applied from the year the right to it appears and is used in subsequent years, provided that there is income in them from which personal income tax is withheld. The deduction will be applied for the number of years necessary for its full use for the entire amount of expenses confirmed by documents (clause 9 of Article 220 of the Tax Code of the Russian Federation).

For pensioners, it is possible to use the deduction for 3 years preceding the year the right to it became available (clause 10 of Article 220 of the Tax Code of the Russian Federation). If in the year the right to deduction arose there was no income subject to personal income tax, then the deduction can be applied for in subsequent years (without limiting their number), but no later than 3 years from the end of the years for which the tax must be returned (letter from the Ministry of Finance of Russia dated June 11, 2014 No. 03-04-05/28218).

An employer who has received a notice of the right to a deduction will begin to use it from the month of receipt, but in relation to income for the entire year (letter of the Ministry of Finance of Russia dated September 25, 2015 No. 03-04-05/55051). If at the time of providing the notification for the current year, the tax has already been withheld and it is not possible to return the excess withheld amount at the place of work from the accrued tax for the year (the amount of deduction exceeds the amount of accruals), its refund will be carried out by the Federal Tax Service (letter of the Ministry of Finance of Russia dated July 15, 2014 No. 03 -04-05/34402).

Regardless of the method by which the deduction is applied, the right to use its balance (if the deduction is to be used for several years) must be annually confirmed with the Federal Tax Service in one of the following ways:

• Receive a notification for your place of work at the beginning of the year - upon application for the issuance of such a notification (clause 8 of Article 220 of the Tax Code of the Russian Federation).
• Submit a declaration to the Federal Tax Service and return the tax through it - according to the application for the return of personal income tax (clause 6 of Article 78 of the Tax Code of the Russian Federation), which indicates the account details for the tax refund. Submitting an application for the application of a property deduction is not necessary (letter of the Ministry of Finance of Russia dated November 26, 2012 No. 03-04-08/7-413). Its role is played by the declaration itself.

Procedure for filling out an application

First sheet

This type of form consists of 3 sheets. The document contains the following information:

1. Tax identification number;
2. Application number;
3. Number of the tax office where the application is submitted;
4. Your data;

   

5. Reason for refund (item code);
6. Overpayment reason code;
7. Payment, indicating the code;
8. Amount of compensation;
9. Tax period coding;
10. OKTMO code
11. KBK code;
12. Banking and financial details;
13. The number of pages in the document and the number of sheets.

    

Let's study all these points in as much detail as possible. So, a tax identification number is a digital code that is assigned as a legal entity. individuals and individuals persons. The tax code of an individual consists of twelve digits. You can find out your TIN in several ways. The first is to contact the Tax Service immediately, providing your passport. Another way is to use a special resource. For example, this could be the State Services website or the official website of the tax service, where you will need to fill out the appropriate electronic request form.

The application number is entered in Arabic numerals. In the case when a person submits an application for the first time, then in the line “Application number” the number “1” is indicated. If this application is repeated, then, accordingly, the number “2” is required. Please note that multiple applications are submitted in the following cases:

• if necessary, reimburse tax amounts for several years, since a separate application is submitted for each calendar year;
• the application was drawn up incorrectly or with errors.

Next, indicate the number of the inspection unit to which the application is submitted. This information can be found on the NS website. For example, you can use the specialized service service.nalog.ru .

In further lines you will need to indicate the full last name, first name and patronymic of the applicant. These lines are filled in block letters and in strict accordance with the passport.

The legal basis for the return of money is Art. 78 Tax Code. This information should be indicated in the line “Based on the article”.

The application also contains information about the reasons for the resulting overpayments. So, when excess amounts were paid or an inflated amount of tax was collected from the taxpayer, you will need to enter code “1”. In case of forced withholding of excess amounts by the relevant authorities, indicate “2”. The number “3” is entered only by legal entities (enterprises, organizations, institutions). For example, when returning tax on real estate (housing), you must enter “1”.

The application must also indicate the amount that should be returned to the tax office. Please note the following important information. The specified refund amount must completely coincide with the figure indicated in the income declaration. This is form 3-NDFL, line 050 (Section 1) and 130 (Section 2).

“Tax period code” is the period for which the tax is being refunded. Due to the fact that an individual’s tax is being refunded, this line indicates “YD” (annual tax), the code for such a tax consists of the numbers “00”. Then you will need to indicate the year of the tax refund. For example, the purchase of an apartment was made in 2021, so you need to indicate 2021. And the full line will look like this: “GD.00.2018.”

OKTMO is a region number that is assigned to a specific region and is contained in the all-Russian classifier. You can determine the meaning of this code by going to the Federal Tax Service website ( www.nalog.ru ).

The next line is KBK - this is a digital code for the budget classification of income. It consists of 20 digits. Please note that each type of tax has its own BCC. You can also find out its meaning at the tax office.

When filling out, you will definitely need to indicate the number of sheets that the document contains, taking into account the attachments.

The application can be submitted either personally or through a proxy. If you submit the document yourself, on the last page of the title page in the section called “Power of Attorney ...” we put “3”, and also indicate the contact phone number, date and at the end we put a signature.

If the application is submitted by a representative, this is done on the basis of a power of attorney, executed in the prescribed manner and notarized. In the above block, the code “2” is then entered and the contact details of the representative are indicated.

Second sheet

The second sheet of the document contains the applicant’s personal, contact information and bank details (to which account should the amount of money be returned). If you do not have a personal bank account, you will need to open one before submitting your application.

So, you will need to fill out:

1. Your Taxpayer Identification Number.
2. Last name and initials.
3. The name of your bank.
4. Details for transfer.
5. Enter the account number - enter the number “1”.

   

6. In the “Recipient” column, enter your passport details.

   

It is important to know! Bank details must be in your name. If you indicated the details of your relatives (wife, brother, parents, etc.), the funds will not be transferred. You will have to fill out and submit the application again.

Third sheet

On the last page only:

• personal data of the applicant, namely, surname, first and patronymic initials:
• code of the type of document (provided for identification). The document can be: passport (code - 21), birth certificate (code - 03), military ID (code - 07), foreign passport (code - 10);
• place of residence.

When the question arises about the distribution of deductions

A taxpayer may have several jobs or change jobs during the period of application of the deduction.

If a person works in several places at the time of issuing a notification of the right to a deduction, you can request several such notifications from the Federal Tax Service, distributing the amount of the deduction between all places of work (clause 8 of Article 220 of the Tax Code of the Russian Federation). Information about employers and deduction amounts related to each of them may be indicated in one application.

When changing jobs, a deduction for a new place will be possible only after notification of the right to it is provided, addressed to the new employer. At the same time, the Federal Tax Service Inspectorate has the opportunity to check the data on the refund already made by receiving a 3-NDFL declaration from the taxpayer for the year of job change (clause 7 of Article 220 of the Tax Code of the Russian Federation). The information reflected in the declaration will need to be confirmed with 2-NDFL certificates from all places of work for the year. 4 months after filing the return, the excess tax withheld for the year will be returned and the necessary notification will be provided.

To learn about receiving 2-NDFL from a former employer, read the article “Where can I get (get) a 2-NDFL certificate?”

The question of distribution of deductions may also arise when purchasing housing in joint ownership, if the total amount of costs for it is insufficient for all owners to use the deductions in full. They can take advantage of the opportunity to allow one of them to apply the deduction in full, redistributing it according to an application to the Federal Tax Service. Other owners in this situation use the deduction only partially or transfer it to other properties.

For details, see the material “Each spouse can receive a deduction for the purchase of property.”

What time frame is allowed to submit an application?

To return the transferred fee, an application must be submitted at the end of the tax period after filling out the declaration. However, if you receive an official salary and do not want to wait that long, you can reduce the specified time frame by contacting your employer. As a result, funds are paid subject to this privilege. The only point is that under the circumstances under consideration, the entire benefit amount is not paid at once, but is divided into several parts.

However, few people know that when claiming a tax (income) refund, these two methods can be combined, since each of them has its own strengths and weaknesses.

Sample application to the tax office

The application for the right to apply a property tax deduction has a specific form recommended for use by the Federal Tax Service of Russia. The form is contained in the letter of this department dated 10/06/2016 No. BS-4-11/ [email protected] Despite the fact that formally the use of a document of a certain form for such a purpose is not mandatory, it is better to submit an application to the Federal Tax Service on the recommended form, since the tax service it was developed with the aim of uniformity in the documentation used.

On our website you will find a sample application for receiving the 1st notice of the right to a property deduction (through the employer), completed on the current form:

A sample application for the return of overpaid personal income tax, submitted with the 3-NDFL declaration, can be downloaded here.

We reduce taxes in connection with the purchase of property

To reduce the personal income tax base by the cost of purchased housing and mortgage interest, prepare a special application to the tax office for a property deduction and, if approved, receive a benefit through the employer. In addition to the application, documents are sent to the Federal Tax Service according to the list:

• contract of sale;
• mortgage agreement;
• act of acceptance and transfer of the apartment;
• payment documents.

If the tax authorities, after reviewing, confirm the possibility of reducing the personal income tax base, the employer will take into account only the amount indicated in the notification from the tax service.

IMPORTANT!

An individual has the right to receive a benefit not only through the employer, but also through the Federal Tax Service, including by submitting a declaration, supporting documents and an application through the taxpayer’s personal account.

Results

The right to apply a property deduction for personal income tax arises when acquiring housing through its purchase or construction. The scope of the deduction includes all actual costs incurred in connection with the emergence of the corresponding object, and interest costs on the loan taken for the purchase (construction).

The deduction becomes applicable after acquiring ownership of the property and completing the investment in it. The Federal Tax Service must be notified of the emergence of the right to it either in the year of its occurrence or upon its completion. In the first case, you can start receiving the deduction at your place of work immediately, in the second, its amount attributable to the past year will be returned by the tax authority.

Since the amount of the deduction usually exceeds the employee's annual income, the tax refund in connection with it is carried out over several years. In this regard, an application for the use of a deduction is submitted several times until it is fully used. To fill out an application, the Federal Tax Service of Russia has developed a recommended form.

Sources:

• tax code
• Order of the Federal Tax Service of Russia dated January 14, 2015 No. ММВ-7-11/ [email protected]

You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

What deductions and for what taxes are available at the place of work?

An individual can receive a personal income tax deduction:

• to the Federal Tax Service;
• at the employer.

The technology for obtaining deductions is different. For example, to file a tax deduction with the Federal Tax Service, you need:

• wait until the year is over;
• fill out 3-NDFL and submit it to the inspectorate along with supporting documents;
• wait again for the tax authorities to check the documents and transfer the money to the account.

More information about what expenses can be offset using a tax deduction is described in the publications:

• “Application for personal income tax refund for education - sample and form”;
• “The procedure for compensation (return) of personal income tax when purchasing an apartment.”

However, an individual has the opportunity not to wait until the year ends. You can use the deduction immediately after purchasing an apartment (paying for training, treatment), if it is provided by the employer.

You can receive a deduction at your place of work:

• only for one tax - personal income tax;
• for two types of deductions - property and social.

Is a deduction possible when purchasing a residential building, see here.

Read about the pros and cons of receiving a tax deduction from your employer in the material from ConsultantPlus. If you do not have access to the K+ system, get a trial online access for free.

Next, we will tell you what needs to be done and in what order to take advantage of the tax deduction from the employer.