The tax when purchasing an apartment in 2021 for individuals is calculated independently, and the tax rate is fixed by the Tax Code and is equal to 13% for residents. The income of non-residents is taxed at an increased rate - 30%. The calculation is as follows: (Income from sale – Amount of property tax deduction) x Tax rate.
At the end of the year in which the purchase and sale transaction was concluded, a declaration in form 3-NDFL must be submitted to the Federal Tax Service, even if the tax base after applying the deduction is zero. Tax obligations to the budget must be repaid no later than July 15 of the year following the year in which the sale was made (Article 228 of the Tax Code of the Russian Federation).
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.
Realities of government support
Positive economic dynamics and rising prices for petroleum products contribute to an increase in revenues to the Russian budget. Thanks to this, the state has more serious financial resources and allows tax deductions to apply when purchasing housing in the near future. During the acute crisis, the authorities significantly reduced expenses, which was a reaction to a sharp decrease in income, but the optimization did not affect tax deductions. State programs continue to be an important factor in the development of the construction industry. And although the peak of the crisis has passed, the demand for housing still remains at a low level. Thus, construction firms in the country remain dependent on government support. The state does not yet intend to abandon the tax deduction mechanism, but continues to actively discuss potential reform that could improve the efficiency of using budget money.
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.
Conditions of receipt
A 13 percent refund on the purchase of an apartment is not available to everyone, despite having an official income. Thus, benefits will apply to the following categories of persons and under specific circumstances:
- Available only to citizens of the Russian Federation.
- Conducting labor activities must be official (with the fact of employment reflected in the Order and the Work Book).
- Persons of retirement age who additionally have a regular income and earn an amount equal to or more than the minimum wage can also apply for a refund.
- Residents of the Russian Federation who are citizens of other states can take advantage of privileges, but only if they conduct official work in Russia.
If you purchase real estate in the name of a minor child, the child’s employed parents can request a tax deduction for the purchase of an apartment.
The Tax Code also contains a list of restrictions prohibiting the use of such benefits, these include:
- private entrepreneurs, due to a special taxation procedure, cannot claim preferences;
- citizens registered with the employment service also cannot take advantage of preferences, since personal income tax is not collected from their benefits;
- persons employed unofficially are treated as unemployed, since the Federal Tax Service does not take into account their wages;
- citizens who have made a purchase using government social programs (military mortgage, maternity capital) cannot receive preferences;
- consideration of applications for preferences is illegal if the contract for the sale of housing is drawn up between the employee and his immediate superior;
- the acquisition of property rights through non-cash transactions excludes financial claims (inheritance, donation, lifelong maintenance agreement);
- exchange of property rights between relatives.
These restrictions are established in order to prevent unauthorized use of assistance, as well as abuse of legal property rights.
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.
Taxation of land plots
By purchasing a country house, the buyer receives at his disposal a plot of land (adjacent territory). The tax services already have data on it; it has a cadastral number and certain boundaries.
At the same time, the new owner is required to pay land tax in the following cases:
- if the site is privatized;
- received on the basis of perpetual use rights;
- is in lifelong possession.
Land tax must be paid annually. The amount is calculated individually, depending on the cadastral value of the site. The Tax Code sets the maximum permissible rates. You can find restrictions in Art. 394.
If you buy a house on land that does not fall under the categories of agricultural land, private household plots, peasant farms, then the rate for annual payment will be a maximum of 0.3% of the cadastral value of the plot. You can find it out on the website: pkk5.rosreestr.ru.
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.
What benefits are provided to pensioners
What should pensioners do if they find themselves in the category of people who are not entitled to a deduction? Can they expect a refund?
is still possible , but taking into account some features. Refunds will occur if the person retired more than three years ago. The apartment must also be purchased no later than this period. The deduction amount will be equivalent to the amount that was relevant at that time. It will not be the pension that will be taken into account, but the salary. The total cost of apartments should not exceed 2 million rubles.
All these nuances must be foreseen in advance so as not to find yourself in an uncomfortable situation when purchasing real estate. After all, buying an apartment is a serious matter and cannot tolerate inattention or haste. If you know in advance what taxes you will need to pay, you will avoid many difficulties. The same can be said about receiving tax deductions, which will be good financial support.
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.
Through the employer
There is no need to wait for a certain period of time to submit an application at the place of employment. After completing the procedure for registering ownership of the object, the citizen can submit an appeal to the employer. After considering the application and making a final decision on it, the employee will be exempt from personal income tax deductions. That is, wages will be received in full without the collection of funds.
There are no uniform recommendations regarding which method to choose. On the one hand, it is better to use cash, since it is unknown how long the employee will be employed. On the other hand, cash may be used for other purposes and not for the benefit of the family. Therefore, each participant in legal relations is free to choose the option that will be most convenient for him.
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.
Obtaining a tax deduction for the purchase of an apartment by one of the two owners
When submitting copies of documents confirming the right to deduction to the tax authority, you must have their originals with you for verification by a tax inspector.
The declaration can be filled out in a special program on the website of the Federal Tax Service of the Russian Federation and submitted directly on paper to the tax office at your place of residence, attaching all the necessary documents. Filling out a declaration in the program is convenient because it immediately checks for possible errors. You can submit your declaration without leaving your home.
To do this, you should register in the “Personal Taxpayer Account” on the website of the Federal Tax Service of Russia. The 3-NDFL declaration can be filled out online. The service allows you to generate a declaration, sign it with an enhanced non-qualified electronic signature (generated free of charge) and send it electronically with a package of documents to the tax office.
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.
Payment procedure
The presence of buildings on the site is secondary, since the owner can buy land for development or receive a site with a house on it.
If you purchased land and built a house on it, then you need to pay tax on it in the next reporting period. For example, if you build a house in the fall of 2021, you pay from the beginning of 2021. At the same time, the house is considered built only after it has been put into operation and the relevant documents have been received.
When buying a house on a plot, the tax amount for the current year is divided between the seller and the buyer. As a rule, payment must be made before November of the current year.
If you are worried about payment deadlines, remember that the tax authorities send out notices about this. The amount of tax you pay in a particular case depends on the inventory value of the property. This figure is indicated in the technical inventory documents of the house. The tax office receives information about the object automatically from departmental organizations.
