As you know, every buyer has the right to return as a tax deduction part of the amount spent on the purchase of housing. Until now, it was believed that this could only be done once in a lifetime, but there are exceptions to this rule.
The procedure for obtaining a tax deduction changed after January 1, 2014, when amendments to the Tax Code came into force. Previously, the tax deduction was tied to the property; taxes paid could only be returned when purchasing one property. If the buyer took advantage of the tax deduction when purchasing one apartment, but did not choose the entire amount due, it was no longer possible to receive the balance when purchasing subsequent objects.
Since 2014, the tax deduction began to be tied to the payer; from now on, taxes can be returned on any number of objects until the buyer fully selects the entire required amount of the tax deduction - 260 thousand rubles (13 percent of two million rubles). You can now submit documents for deductions to the tax office as many times as the buyer requires.
Who can return the tax deduction
According to the law, in 2021, all taxpayers are given a second chance to take advantage of the property deduction. According to Article 19 of the Tax Code, these can be legal entities and individuals paying taxes.
In addition, such citizens must reside permanently in Russia for one year (clause 1 of Article 207 of the Tax Code).
This justification does not apply to certain categories:
- military personnel forced to serve outside the country;
- employees of government agencies sent abroad.
These citizens are considered residents, regardless of their location throughout the year.
To return the tax deduction, you must have a stable income subject to personal income tax.
. If you don't have one, you won't be able to get compensation.
How does distribution occur in shared ownership?
Shared owners-co-borrowers have the right to distribute the interest deduction in any proportion, regardless of the size of the shares. The proportions can be changed annually at your discretion.
The Petrovs bought an apartment as shared ownership in 2014 for 2 million rubles with a share size of 50/50%. For the first year of the mortgage, the owners paid 300 thousand interest and divided the deduction in half, receiving a deduction in the amount of 19,500 rubles for each (150 thousand * 13%).
In 2021, the husband was fired, so when submitting a declaration for interest deduction for 2015, the Petrovs decided to distribute the shares equally, as in 2014, and for 2016 in accordance with 100/0% (100% of the interest deduction will be received by the wife, and husband – nothing, since there was no income for this year).
Thus, for 2021, they declared a mortgage interest deduction in the amount of 39,000 rubles, which the spouse will receive (300 thousand * 13%).
In cases where spouses purchase an apartment in shared ownership and each of them invests a certain amount in the purchase, they have the right to declare the distribution of shares in accordance with the expenses incurred. In this case, all expenses must be documented . However, mortgage interest, according to the Family Code of the Russian Federation, is considered a joint expense of both spouses, so they can distribute the deduction in any proportion and change it every year.
What is meant by re-deduction
This is understood as a prerogative for Russians, which consists in the legal right to return part of the funds (13% of the due contribution to the state budget) when purchasing real estate or as a result of paying interest on a home loan from a bank.
The permissible amount of the benefit is limited to 2,000,000 rubles, when taking out a mortgage - 3,000,000 rubles. Therefore, when subtracting 13% from them, the result is 260 thousand. The exact amount of compensation is determined by the year the property was purchased - before or after 2014.
Order until 2014
Conditions for the return of deductions when purchasing property before the specified year:
- maximum size – 260 thousand rubles. of the total acquisition cost;
- 13% of the total bank interest accrued upon concluding a mortgage agreement.
If a person managed to fully take advantage of the existing benefit before changes in legislation, then he does not have the right to apply for compensation again. Even if the amount of compensation was less than 260 thousand, the balance is irrevocably burned.
When the mortgage was not issued or the interest was not declared to the tax office for reimbursement, there remains a chance of receiving compensation again in subsequent years.
Situation after 2014
The procedure for returning property deductions has changed after amendments to the law. The following monetary compensations are currently in effect:
- 260 thousand rubles. – when purchasing property;
- 390 thousand rubles. - for mortgage lending.
No matter how many times real estate is purchased, if you want to return the deducted tax, they focus on the standard 13% and the limit of 2 million rubles, which in total gives 260 thousand rubles. This amount cannot be exceeded.
If a citizen managed to buy a residential property before the turning point and issued a tax deduction for it, then the second time he will be able to return it only on the interest paid.
So, from January 1, 2014, it is possible to re-claim a tax deduction if:
- the resident became the owner of real estate after the specified date;
- until 2014, the resident did not take advantage of his privilege to return the deduction.
The author of the “Personal Audit” program, director of LLC Irina Fedulova answers:
To assess the situation, the following conditions for using the property tax deduction are important. So, if the deduction was used before 2001, then you have the opportunity to receive a property tax deduction again. If the deduction was provided in the period from 2001 to 2014, then re-using the property tax deduction is impossible. At the same time, the Ministry of Finance indicated that the use of a property tax deduction in the amount of interest on a mortgage loan is possible if
- the property tax deduction until 2014 was used without taking into account interest on a mortgage loan;
- The loan agreement, which is the basis for a property deduction in the amount of interest, was concluded with the bank after 01/01/14.
How to choose a bank and mortgage program?
Forecasts for real estate prices in 2017
How to return income deductions when buying a second apartment
In the case of the acquisition of real estate, it is not prohibited to return the deducted income tax a second time, provided that the entire limit was not previously exhausted - 13% of 2 million rubles
.
The procedure for purchasing a second residential property follows standard technology:
- submit an application listing the general grounds;
- prepare a tax return;
- collect a package of documents.
There are two ways to receive monetary compensation - through the employer or the inspection.
In the first case, you will need to take the following actions:
- Submit the required documents to the Federal Tax Service.
- Wait for a decision from the tax office.
- Receive the notice and give it to the accounting department. Then they write an application for the return of the deducted personal income tax.
After this, starting next month, personal income tax will no longer be withheld from the employee’s salary. This will continue until the required amount is compensated.
They return the money through the Federal Tax Service in the same way: they submit documents and write an application. Only in this case can the deduction amount be received in full by transferring it to a personal account.
The procedure for obtaining a tax deduction through the inspection takes about 3 months
. If any inaccuracies or inconsistencies are discovered during the audit, the applicant is notified of this. If a positive decision is made, the citizen is asked to provide account details for transferring funds.
It is allowed to file a property tax deduction declaration one year after purchasing real estate.
When does the right to receive a deduction arise?
Every sane person dreams of buying their own home, but there is often not enough money for this. The state is making every effort to support the construction market, which depends, first of all, on the demand of the population. Considering that any transaction is subject to tax, it was decided to reduce the tax burden when carrying out expensive transactions with residential real estate. A legal right arises in the following cases:
- when purchasing a house, apartment or other object intended for residence;
- when purchasing part of a residential premises or a share in it;
- after acquiring a land plot intended for individual construction;
- in the case of exchanging an apartment or house, if an additional payment is expected for more comfortable living conditions.
According to the law, only citizens of the Russian Federation can apply for benefits; this does not apply to foreigners and stateless persons. The law also does not provide for the provision of benefits in the case of the purchase of real estate used for commercial purposes.
Remember! If there is more than one basis for receiving a tax deduction, you have to choose one, although if the maximum deduction amount allows, you can apply for benefits on several grounds at once.
Required documents
When repeatedly approving a property deduction, you must collect the following documents:
- completed application form;
- forms 3 and 2-NDFL (indicating income and tax payments);
- photocopies of a passport or any other document that can be used to identify the applicant;
- TIN, marriage and birth certificates;
- residential real estate purchase/sale agreement;
- documentation from the bank (when taking out a mortgage);
- a certificate confirming ownership of real estate;
- payment details of the receiving bank.
If the applicant works two jobs with official employment, then it is allowed to provide a 2-NDFL certificate from both employers.
A sample of filling out an application to the tax office can be found below.
If you need to request a deduction a second time, you will need to collect all the documentation again and submit it to the tax office. When an application is submitted for the return of a deduction for the same object, it is enough to submit only a certificate from an accountant and a tax return
.
The legislative framework
The basic procedure for accruing additional benefits is listed in the Tax Code, namely in Article 220.
In 2013, some changes were introduced to the current provisions of the law. Now the main focus is on the year in which the property was purchased. If before 2014 the order was the same, if after, then it’s completely different.
These additions can be viewed in Federal Law No. 212. They were introduced in mid-2013 and came into force in 2014.
When can you get rejected?
When the tax inspectorate considers an application for the return of a property deduction, a refusal is possible in the following cases:
- purchase (sale) is carried out between people who are closely related;
- the residential property is purchased by the employer;
- incorrectly filled out form 2-NDFL;
- when a military mortgage is issued, where the financing of the transaction comes from government subsidies or maternity capital.
If an apartment or other residential property was purchased after a change in legislation, then a resident of the Russian Federation has the right to deduct as many times as the limit of the permissible amount allows - 260 thousand rubles.
When will it not be possible to return?
It will not be possible to issue a repeated deduction when registering real estate before 2014. The procedure for using the deduction is calculated in the year in which property rights were obtained. Before 2014, all issued deductions were provided only once; if the full amount of compensation was not used, it simply burned out.
If the property was purchased after 2014, then you can use your right until the full amount (260 thousand) is received as a deduction. Until this happens, the deduction can be issued two, three or more times.
Procedure and methods of obtaining
The traditional way is to visit the tax office in person. Over the past few years, users have been actively switching to remote service through their personal tax office account.
You can gain access by visiting the Federal Tax Service with your passport and taking your login/password. Do not confuse with government services and MFC! It's not the same thing!
Your personal account has an intuitive menu that allows you to fill out declarations online and sign them with an enhanced electronic signature. You can apply for it for free, without leaving your couch.
The basis for the return is the 3-NDFL declaration. If you submit it only to receive a deduction, then you can do this throughout the entire year following the reporting year. has a section that allows you to report on income received without the participation of other tax agents (for example, for renting out the same apartment). Income must be reported within the time limits established by law.
3-NDFL is filled out independently using the program on the Federal Tax Service website or at a firm providing accounting/legal services.
Online
Scanned documents confirming expenses for deduction are attached to the declaration completed through your personal account. After this, you need to click the send button. You can track the progress of the verification on the website. When it is completed, submit a return application. To do this, select the appropriate menu button and indicate in the application the bank account details for depositing money.
Personally
Take 3-NDFL on paper to the Federal Tax Service in 2 copies. Submit copies of supporting documents. On one copy of the declaration you will be given a mark indicating receipt of the documents. The method of informing you about the progress of the inspection will be agreed upon.
In practice, often the taxpayer, after 3 months allotted for the audit, calls himself and finds out the result. When the verification is successfully completed, you need to submit a return application. Visit the department and fill out the appropriate form. If by this time you have a personal account, this can be done remotely. Have your bank account details ready.
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Tax deduction for undervalued purchases
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Tax deduction for mortgage interest
On the distribution of deductions by spouses
When married spouses purchase real estate, they can distribute both of the above deductions among themselves in any proportion - paragraphs. 3 p. 2 art. 220 Tax Code of the Russian Federation. By default, the deduction is 50 to 50, but spouses can distribute, for example, 75 to 25. Up to 100% for the first spouse and 0% for the second.
Moreover, the entire deduction can be distributed to the first spouse, even when - 1) the second spouse has already received a deduction for other real estate, i.e. I have already spent my right - Letter of the Federal Tax Service dated April 4, 2013 No. ED-3-3/ [email protected] ; 1) the second spouse does not work or is on maternity leave, i.e. does not pay personal income tax - Letter of the Ministry of Finance dated March 29, 2021 N 03-04-05/18320; 3) the second spouse works unofficially, i.e. personal income tax is not withheld from his salary/income; 4) the apartment is fully registered in the name of the second spouse - clause 1 of Art. 256 Civil Code of the Russian Federation, Art. 34 RF IC, Letter of the Ministry of Finance dated March 18, 2015 No. 03-04-05/14480. The main thing is that the first spouse, to whom the entire deduction will be distributed, has not previously received it himself.
Example: Mikhail bought a 1-room apartment with a mortgage in 2013 and received both deductions for it. He got married in 2021, his wife’s name is Irina. In 2018, Mikhail sold his 1-room apartment, and in return they bought a 2-room apartment with a mortgage. Irina has not previously received either of the deductions, so the spouses can distribute both deductions entirely to her.
How to find out the amount of the remaining deduction
The information is contained in the declaration in the form. At the end you will find a calculation of property deductions. At the bottom of the calculation is the balance that is carried over to the next period. If for some reason you cannot obtain the information from your return, contact your tax office.
Tax deduction for mortgage interest on a second apartment
The ability to obtain a tax deduction for the amount of interest on the loan when purchasing 2 apartments depends on whether the taxpayer has not exercised this right the previous time. This deduction is tied to the object and can only be used once.
It should be remembered that tax deductions for acquisition costs and for interest payments exist independently. Reporting for interest paid to 3-NDFL is your right, not your obligation. This can be done either together with the purchase deduction or separately.
When will the funds be credited?
If the deduction is issued at the place of work, then verification of documents takes 1 month. Income tax will not be withheld from the applicant’s salary from the month the notification is submitted to the company’s accounting department.
A one-time deduction is accrued for the calendar year and is usually received on the applicant’s card 2-3 months after a desk verification of documents.
It will not be possible to receive a deduction multiple times due to the high cost of real estate and legislator restrictions. If it is possible to arrange a payment, you should definitely collect documents and receive funds, which can be significant financial support for the budget of the owner of the purchased home.
Calculation example
In 2021, Alekseev purchased small apartments worth 1.4 million rubles. and received a deduction of 190 thousand rubles. In 2021, he purchased a cottage. Then in 2021 he has the right to receive a deduction from the remaining 600 thousand rubles. Thus, he will receive a second deduction in the amount of 70 thousand rubles.
Payment is not due if the property is transferred to the taxpayer in gratuitous transactions.
Funds can be obtained when purchasing a home with a plot or when the applicant has spent a significant amount on renovating the apartment.
