Tax deduction when buying an apartment in 2020: how to get and return 13 percent

In the list of the most important human needs, housing occupies one of the leading places. The purchase of a house or apartment by Russians is encouraged and supported by the state. For socially vulnerable citizens of the Russian Federation, programs are provided that offer various forms of financial assistance in solving the housing problem. There are support measures available to all working taxpayers, regardless of status and income. A property tax deduction when purchasing an apartment in 2020 will be available to those who paid for square meters from their own savings or took out a targeted loan.

Deduction: what is it and where does it come from?

To get a complete picture of deductions, it would not hurt to familiarize yourself with the second part of Article 220 of the Tax Code of the Russian Federation . The main idea of the deduction is to return to the real estate buyer part of the money paid for housing from budget funds generated through the collection of taxes. The monthly income tax, which the employer withholds for the employee and sends to the state treasury, is partially returned to the buyer-taxpayer after purchasing the property.

The deduction can also be issued by the seller, who, after selling the property, must pay income tax - he can also return part of the funds paid.

This measure allows the state to help citizens solve the housing problem and at the same time stimulate the real estate market.

Property tax deduction in 2017

Purchasing an apartment, room, land plot or shares in them, new construction of a residential building and the costs of repaying targeted loans for the purchase or construction of real estate are the main grounds for obtaining a property tax deduction, explains Elena Biryukova, leading accountant.

“Any citizen of the Russian Federation who pays personal income tax at a rate of 13% has the right to submit documents for a property deduction,” the expert notes. – This right is enshrined in Art. No. 220 of the Tax Code of the Russian Federation. It can be used in any period following the year of purchase; no statute of limitations has been established.”

So, if you purchased an apartment in 2020, then you can submit documents for a tax deduction starting in 2020. Having received documents confirming your rights to real estate, begin collecting the necessary documents to receive a property tax deduction.

“Please note that the number of deductions for the sale of property is not limited, however, when purchasing or constructing real estate, the deduction can be received once in your entire life,” notes Yulia Rybalko, a leading specialist in payroll calculations in legal.

How much can I get back?

“13% of the amount of expenses is subject to return, while the state regulates the maximum amount of purchased property with which a return can be made - 2 million rubles,” says Yulia Rybalko. – For example, when purchasing an apartment for 2 million rubles, you can return 260,000 rubles. previously paid taxes, and for 1 million rubles. – 130,000 rub. If the purchase price is more expensive, the refund amount will not change.”

What documents will be needed?

passport;
copy of TIN certificate;
a completed application for a tax refund;
a completed tax return in form 3-NDFL (in the section “Tax return forms for personal income tax” on the official website of the Federal Tax Service (subsection “Software”) you can also download the program “Declaration 2016” (2015, 2014, 2013), which automatically checks the correctness of filling);
certificate of employment for the year in form 2-NDFL;
details of the account to which the funds will be transferred;
copies of documents confirming the right to housing ( certificate of state registration of rights, purchase and sale agreement, acceptance certificate, target credit agreement or loan agreement, mortgage agreement, loan repayment schedule and interest payments);
copies of payment documents confirming expenses for the acquisition of property (receipts for receipt orders, payment orders, bank statements about the transfer of funds from the buyer’s account to the seller’s account, extracts from the taxpayer’s personal accounts, certificates from the organization that issued the loan about the interest paid for using the loan);
a copy of the marriage certificate and a written statement about the agreement of the parties to the transaction on the distribution of the amount of the deduction between the spouses.

How to get a property deduction?

You can receive a property deduction in 2020 either independently by submitting the necessary documents to the tax authority, or through your employer.

“At the tax office, after the end of the tax period, you can receive a lump sum of 13% of your income received during the year,” explains Elena Biryukova. – Through the employer - until the end of the tax period, if the tax office confirms the right to deduction. This will allow you to receive wages without withholding 13% personal income tax, starting from the month in which you brought confirmation from the tax office.”

If you are going to receive a property deduction through the tax office yourself, then the collected package of documents must be submitted to the tax office at your place of residence. You will also need original documents so that the tax inspector can verify their authenticity.

“The documents will be subject to desk verification for three months,” warns Elena Biryukova. – If the decision is positive, the money will be credited to your account within a month. According to paragraph 9 of Art. 220 of the Tax Code of the Russian Federation, if property tax deductions cannot be used in full during a tax period, their balance can be transferred to subsequent tax periods until they are fully used. Depending on the taxpayer’s earnings, personal income tax refunds may take several years.”

If you intend to receive a tax deduction through your employer, then you will have to:

submit a package of documents to the tax office along with a statement that you have received a notification from the tax authority regarding the right to a property deduction;
after 30 days, receive a tax notice about the right to a property deduction;
give notice to the employer.

“A notification from the Federal Tax Service is a basis not to withhold personal income tax from the salary paid to an employee in the current tax period, and the main document confirming the right to a deduction, therefore, upon receiving the notification, you must check whether all your data and details are correct,” explains Yulia Rybalko. – All employee income paid in the current year, subject to personal income tax of 13%, is reduced by the amount specified in the notice. Income includes wages, vacation pay, bonuses, financial assistance and temporary disability benefits accrued in 2020. Please note that dividends are not included in income.

If the deduction has not been used in full this year, you will need to receive a new notification from the tax office at the beginning of the year. To receive a new notification, you must provide to the tax office, along with your application, a certificate in form 2-NDFL, which you can take from your employer for the previous year (Letters of the Ministry of Finance of Russia dated 04/22/2015 N 03-04-05/23108, dated 10/27/2011 N 03-04-05/9-809)".

When to file a tax return?

Yulia Rybalko reminds that the personal income tax return (form 3-NDFL) is submitted by the taxpayer annually no later than April 30 of the year following the expired tax period. For example, a personal income tax return for 2020 will need to be submitted to the tax office by April 30, 2020.

How to calculate the amount of deduction?

The amount of deduction provided to the taxpayer for the tax period as a whole, as Yulia Rybalko notes, cannot exceed:

1 million rub. when selling residential real estate and land;
250,000 rub. when selling other property, with the exception of securities.

“The maximum deduction amount is: 2,000,000 x 13% = 260,000 rubles. This amount can be applied to several purchased residential properties if their total cost is less than 2 million rubles. (Clause 3 of Article 220 of the Tax Code of the Russian Federation), the expert clarifies. – If real estate is purchased by spouses, then each of them has the right to a maximum deduction amount of 2 million rubles.

If a loan was taken out to purchase property, you can receive a deduction of no more than 3 million rubles for interest. The maximum deduction amount is: 3,000,000 x 13% = 390,000 rubles.”

What will change in 2020?

Elena Biryukova draws attention to the fact that since 2020, the list of grounds for receiving property benefits has increased (subclause 1, clause 1, article 220 of the Tax Code of the Russian Federation): “Previously, there were the following benefits: deduction when selling property, a share in it or a share in the charter capital of the company; deduction when assigning rights of claim under an agreement for participation in shared construction (investment agreement). Now added: deduction for leaving the company; deduction when transferring funds to a company participant in the event of liquidation of the company; when the nominal value of a share in the authorized capital of the company decreases.”

“In 2020, there will be changes in confirming the right to a property deduction when purchasing real estate (Federal Law No. 360-FZ dated July 3, 2016), adds Yulia Rybalko. “If previously, in order to receive a deduction, it was enough to provide a certificate of state registration of the right, then in 2020, ownership of the acquired property will need to be confirmed in a different manner.”

So, if you purchased real estate after July 15, 2020, then the right to a property deduction will have to be confirmed with an extract from the Unified State Register.

Payment restrictions

There are restrictions on the amount - the maximum deduction amount that can be received is 260 thousand rubles. Tax base - the maximum cost of housing, which serves to determine the amount of deduction, is 2 million rubles (those 13%, which amount to 260 thousand rubles). That is, if housing costs not 2 million rubles, but 2.5 million, then the buyer will still receive only 260 thousand.

Conditions for receiving and amounts of property deduction when calculating personal income tax

Income, from which an individual is obliged to make contributions to the state, forms the tax base. Based on this amount and the rate determined by law, the tax is calculated.

If a person receives income taxed at different rates, a separate base is formed for each. Its size and, accordingly, the amount of calculated tax may be reduced as a result of the application of benefits.

The Tax Code (Article 220) establishes property deductions. They reduce the personal income tax tax base when purchasing within Russia:

cottage or private house;
shares in common premises;
apartments;
separate room;
land for development;
land under the cottage or house being registered as property.

The deduction amount is equal to the owner’s actual investment in the purchase. Applies only to income subject to taxation at a rate of 13% (Tax Code of the Russian Federation, Art. 210). The maximum threshold of buyer costs by which the base can be reduced is 2,000,000 rubles. Previously, the deduction was based on one acquired property, regardless of its value.

Since 2014, a taxpayer who has received a deduction of less than 2,000,000 rubles has the right to use the remaining amount when purchasing another home. In this case, the calculation is made based on the restrictions that existed at the time of the initial application.

The tax base can be reduced by the amount of interest paid to the bank for the use of borrowed funds, as well as on loans provided to refinance a mortgage. The maximum amount of this deduction is 3,000,000 rubles. This upper threshold was established from 01/01/2013. If the property was purchased with a mortgage before this date, the restrictions do not apply. It is permissible to reduce the tax base due to interest paid only for one purchased residential property.

Features of mortgage deduction

If the property was purchased on credit, the maximum deduction limit is 2 million rubles, and this does not take into account the amount that is used to pay off interest on the loan (you can get a separate deduction for this). That is, you first need to return the tax, which is associated with the very fact of acquiring real estate, and only then worry about the mortgage deduction.

It is important to collect copies of receipts and other payment documents related to loan repayments.

Features of receiving a deduction

The statute of limitations for receiving this type of deduction

Unlike the social deduction, which has a limited application period (3 years), the property deduction can be received at any time, regardless of the number of years that have passed since the acquisition of real estate. But you can claim for reimbursement a deduction for no more than three past years. For example, an apartment was purchased in 2010. In 2020, you can only receive a deduction for 2018, 2017 and 2020

One-time benefit

You can only receive a deduction once in your life. It is not possible to receive it again (with one exception).

Transfer of deduction balance

For property acquired after 2014, the shortfall in benefits must be transferred to another property. That is, if the deduction for one apartment was not received in full, the remainder can be received when purchasing another property.

If the apartment was purchased before 2014, it will not be possible to transfer the balance; it will burn.

Note: The remaining mortgage interest deduction does not carry over to other properties.

Amount of deduction when buying a home by spouses

Until 2014, the deduction for a family when buying an apartment could not exceed 2,000,000 rubles. and distributed according to the application or shares of the spouses.

After 2014, the deduction is RUB 2,000,000. for each of the spouses and is distributed based on the expenses incurred by each of them.

Features of the law for the seller

When selling real estate, the seller faces a slightly different situation. If an apartment, house, room or share of living space, or a plot of land or dacha is sold, the maximum deduction you can count on is 1 million rubles , when it comes to other real estate (garages, outbuildings, etc.) - 250 thousand rubles .

It happens that property is confiscated from the owner due to state or municipal necessity. Then the compensation is equal to the redemption price of the plot of land and any property located on it.

Documents for receiving a deduction

Declaration in form 3-NDFL (if applied through the tax authority).
Application for personal income tax refund (if applied through the tax authority).
Application for confirmation of the right to deduction (if applying through an employer).
Application for distribution of expenses (if claiming a deduction for marriage).
Documents confirming the fact of acquisition of real estate.
Documents confirming expenses.

More details about the list of documents submitted when applying for a property deduction can be found here.

Less - to the tax office

To receive compensation related to the sale of a real estate property (refund of part of the sales tax), you must contact the tax authorities directly. The goal is to obtain a certificate stating that the buyer (seller) is indeed entitled to a deduction, which is confirmed by the relevant documents.

Documentation

The full list of documents that need to be provided must be clarified with the tax authority, but the main ones are:

Identification;
Contract of sale;
Mortgage agreement (if a loan was issued).

In addition, to receive compensation, you must obtain a standard 3-NDFL form from your employer.

For which years is registration possible in 2020?

A property tax deduction in 2020 can be applied for as much as possible based on the income of the past 3 years (and for pensioners - on the income of the past 4 years), while real estate can be purchased more than 3 years ago. But do you have grounds for registration for all 3 years (and for pensioners for 4 years):

If less than 3 years have passed since the year you received the rights to real estate , then you can apply for a deduction starting from the year in which you received the rights to real estate (this exception does not apply to pensioners - for them registration is possible based on the income of the past 4 years). For example: real estate was purchased under a sales contract in 2014, and the rights were registered in 2020 (the certificate of ownership indicates 2020 - the date of entry in the register of real estate rights). You can apply for income in 2015 and 2020 (and for pensioners - 2013-2016).
If more than 3 years have passed since the year the rights to real estate were obtained , then you can apply for a deduction based on the income of the past 3 years, and for pensioners - on the income of the past 4 years. For example: an apartment was purchased in 2010 under a DDU agreement, the transfer and acceptance certificate was signed in 2011. 3-NDFL in 2020 will be issued for 2014, 2020 and 2020. The deduction for income 2011-2013 in 2017 can no longer be issued.

Tax Receipt Options

If you want to receive a refund at once of the entire amount due (paid in the form of taxes for the previous year), this must be indicated at the tax office, and after the end of the year for which the deduction is claimed, the tax will be returned. If you plan to file a return annually, you should immediately take care of obtaining a deduction so as not to have to contact the tax authorities additionally.

The most convenient way to interact with tax authorities is through your personal account on the official website of the Federal Tax Service. This will allow you to easily track in the future the stage at which the application is being considered. On the same resource you can make all accrued payments to the budget.

The second option is to receive benefits from the employer, who simply will no longer withhold tax according to the previous rules, which means that the salary will be slightly higher. This is not the most tangible increase, and, of course, you won’t be able to get rich from it. Therefore, financial consultants recommend that those who want to buy something significant and do not know how to save, file a refund for the entire amount with the inspectorate and, accordingly, enable the employer to pay the tax in full.

If, nevertheless, it seems more convenient to receive an increased monthly remuneration, it is necessary to obtain a special certificate from the tax authorities for the employer, which will serve as the basis for providing a deduction in the current year. After the end of the specified tax period (calendar year), you will have to receive a notification again.

Income tax, which can be determined to be refunded, can be calculated both on income received at a permanent place of work, and on amounts that are withheld in accordance with private, civil contracts.

In any case, it is important to have documents that confirm the costs of purchasing real estate, as well as registered ownership.

In what ways is a tax refund possible?

There are 2 ways to receive deductions:

to the Federal Tax Service;
at the place of work.

Whether a tax agent can provide a property deduction to someone working under the GPA, find out here .

Before applying them, copies of documents giving the right to deduction must be submitted for verification to the Federal Tax Service together with:

With an application for the issuance of a notice of such a right, if there is an intention to receive a deduction already in the year in which this right arose (the notice that the Federal Tax Service will issue in a month is presented at work so that they stop withholding personal income tax on income). At the same time, the amount already withheld in the current year must be returned to the place of work (clause 15 of the Review of the practice of considering cases by courts..., approved by the Presidium of the Supreme Court of the Russian Federation on October 21, 2015).
Application for tax refund, 2-NDFL certificates and 3-NDFL declaration based on the results of the year in which the right to deduction arose. After checking the documents, the Federal Tax Service will return the tax in 4 months. If you intend to continue to receive the deduction at your place of work, you can also write an application for the issuance of a notice of the right to the remainder of the deduction and continue to receive it at your place of work.

To learn about the form on which the declaration for 2020 can be submitted, read the material “3-NDFL-2017: The Federal Tax Service explained the form in which the report will be accepted.”

As a rule, the volume of deductions for the purchase of an apartment is large enough for the amount of tax refunded on them to be compensated to the taxpayer for 1 year. To confirm the amount of the balance or for a refund, you will have to contact the Federal Tax Service annually. But regardless of the method of receiving the tax, you will not have to re-submit documents for the right to receive a deduction (letter of the Federal Tax Service of the Russian Federation dated August 12, 2013 No. AS-4-11 / [email protected] ). Only confirmation of interest payments will be required if the loan repayment is not completed at the time of submission of the main package, and for payment of purchases in installments.

Deduction – per person or object?

The benefit is provided to a citizen of the Russian Federation once during his life , and is calculated based on the total cost of all acquired real estate (within the established limit). This means that if after the purchase the deduction limit has not yet been exhausted (for example, the property costs 1.6 million rubles, not 2 million rubles), then when purchasing another home it is possible to receive the remainder of the deduction. The number of objects purchased by a citizen is not limited.

Thus, those who would like to earn extra money by buying and selling real estate (above the limit) are forced to pay tax in full.

How to calculate the deduction amount for an apartment

The amount of the deduction in relation to the object to which they intend to apply it is determined by summing up all expenses related to this object according to the documents. Then, depending on the specific situation, a comparison is made with the limits of deductions.

If the property was purchased by 1 owner without a mortgage, then possible comparison options will be:

the amount of direct housing costs is less than 2 million rubles. - then the deduction will be equal to the amount of actual expenses, and the difference between it and 2 million rubles. can be used as a deduction when purchasing another item;
the amount of direct housing costs is more than 2 million rubles. - then the deduction will be equal to 2 million rubles. and when purchasing another object it will no longer be possible.

If mortgage interest is added to this owner's expenses, a second comparison is made:

interest paid is less than 3 million rubles, and payments are completed - then the deduction will be equal to the amount of interest paid; the unused amount cannot be declared in the future;
the amount of interest paid exceeds 3 million rubles. - then, regardless of the fact of completion of payments on them, the deduction will be equal to 3 million rubles;
if the amount of interest paid is less than 3 million rubles, and payments on them continue, then the amount of the deduction can be adjusted to the total amount of total payments on them or up to 3 million rubles. by submitting a declaration to the Federal Tax Service.

Owners of shared or common property will do the same. They will only compare these limits with their contribution to the costs of acquiring the property. At the same time, they can use the deduction both in the amount of their actual contributions and with its redistribution by agreement between them. In the latter case, they will be required to submit an application to the Federal Tax Service to redistribute the deduction. Such redistribution, in the event that it is impossible for all of them to simultaneously use deductions for this item, will fully give one (or several) of them the opportunity to use its amount in full. Other owners will use the deduction only partially or transfer it completely to other properties.

Changes

If a person submits documents for the first time for property registered in his name since 2014, he can easily receive the deduction amount due to him for several objects. For example, if in 2020 a room was purchased for 700 thousand rubles, the remaining limit on the tax base can be used to obtain a deduction for real estate that was purchased later. And so on until the entire limit is used.

For apartments purchased before 2014, different rules apply: the deduction is assumed only for one object.

If we are talking about a mortgage deduction, the state grants the right to deduct the loan amount and interest only once and only in relation to one object. When re-lending, you should not count on benefits. However, if there is a need to refinance an existing mortgage, interest can be included in the deduction.

To make this possible, when receiving a loan to pay off mortgage interest, the purpose of the loan must initially be specified in the agreement with the financial institution. That is, it is necessary to write that the loan is taken out to refinance a mortgage loan.

What rules must be followed in 2020 to receive a tax deduction for an apartment?

For rights arising from 2014 and later, the main provisions of the housing deduction are applied taking into account the new rules:

The maximum deduction amount per person is 5 million rubles. (including 2 million rubles - direct housing costs, 3 million rubles - mortgage interest costs), they can be applied to different objects.
Expenses can be redistributed between the owners and the deduction can be used in a sequence convenient for them.
You can speed up your tax refund by applying to multiple employers for the deduction.

The choice of the year of application for deduction should be determined not only by the availability of income on which the tax will be returned, but also by the collection of a complete set of documents on expenses. It will take time to include, for example, finishing costs. But perhaps it makes sense to wait with the deduction, since an upward adjustment to the amount of direct expenses for a specific object can be made only in 3 cases:

when taking into account the cost of interest on a loan (letter of the Ministry of Finance of Russia dated June 11, 2014 No. 03-04-05/28176);
when paying for housing in installments (letters from the Federal Tax Service of Russia dated November 12, 2014 No. BS-4-11/ [email protected] and the Ministry of Finance of Russia dated November 25, 2015 No. 03-00-08/2/68507);
if there are costs for the completion (finishing) of an object that was unfinished (without finishing) at the time of acquisition (clause 17 of the Review of the practice of considering cases by courts..., approved by the Presidium of the Supreme Court of the Russian Federation on October 21, 2015).

Pensioners can be granted a deduction for the years preceding the emergence of the right to it, but not more than 3 years. That is, if the right to a deduction arises in 2020, they can receive it for 2020, 2020 and 2020 (letter of the Ministry of Finance of Russia dated July 1, 2016 No. 03-04-05/38736).

For examples of the distribution of deductions by year, see the article “Property tax deduction when purchasing an apartment (nuances)” .

No right to tax relief

Unfortunately, the right to deduction does not apply in all cases. You will have to do without a tax benefit if the property was purchased from a member of your own family or, for example, from a direct employer. The deduction applies only to those types of real estate that are approved by law. If this is, for example, a garage or a private bathhouse, you should not expect a tax break.

The deduction is also not allowed for those who did not invest their own money in the purchase of real estate. If, for example, parents bought an apartment for their daughter or son, the young people will be denied the deduction. But you can count on the benefit if housing is purchased with money donated - it is important that the name of the person claiming the deduction appears in the payment and contract documents.

The right to receive a deduction does not apply to cases where housing was purchased using maternity capital or through participation in other government programs. In this case, the idea is clear - the state already provided considerable financial assistance.

It happens that the tax office refuses to provide a deduction, although a person really has the right to it. Most often this happens due to the fact that the complete package of documents has not been submitted. Therefore, the following nuances must be taken into account:

in the application it is necessary to indicate the number of the current account or bank card on which you plan to receive money;
the required original 2-NDFL must be obtained in all places where a person is officially employed; the information in the declaration itself must correspond to the information in the above certificate.

Cases in which deduction is not provided

In the Russian Federation, there are programs that help various segments of the population purchase housing:

military mortgage;
support for young families;
resettlement from the Far North and others.

In order to determine the possibility of using the right to a property deduction in such cases, you should refer to the Tax Code of the Russian Federation (clause 5 of Article 220). It prohibits reducing the tax base by the amount of expenses incurred through:

employers;
budget of the Russian Federation;
local budgets;
other persons.

Such expenses include maternity capital, subsidies to families under the Housing program, full or partial payment by the employer for housing for employees, and others.

The Federal Tax Service will accept for deduction only amounts confirmed by payments made personally by the buyer at his own expense. If money for an apartment was transferred by the Ministry of Defense, municipalities, the Pension Fund, other legal entities and individuals, they are not included in the deduction.

In this case, in the 3-NDFL declaration, on the sheet containing information about the objects, it is necessary to indicate not the full cost of housing, but the expenses incurred by the taxpayer.

Who cannot receive a deduction

Participants in a transaction for the purchase and sale of housing between interdependent people will not be able to claim a tax reduction. Based on Article 105 of the Tax Code of the Russian Federation, these include:

husband and wife;
children and parents;
guardians, trustees and their wards;
brothers and sisters.

The deduction is not provided repeatedly; a person can receive it once in his entire life.

Return for an apartment in a new building: features

You can purchase an apartment in a new building at any stage of the construction of the house, but this does not mean that the deduction will be provided in the near future. The state, if you contact the tax authorities in a timely manner, will certainly fulfill its obligations, but only after the high-rise building is put into operation and full registration of ownership of the purchased living space. One of the basic documents is the share participation agreement.

So, in this case, we wait for registration and only after that we go to the tax office or to the employer.

conclusions

So, getting a property deduction is not that difficult even with minimal knowledge of taxation. To begin, simply wait until the end of the calendar year in which the real estate transaction was made, and then contact the tax office at any time.

There is no need to open special accounts or cards - the money will be transferred using the specified valid details.

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Last modified: 11/07/2018

The article was posted by Real Estate LLC.

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It's important not to be late

There is not always time to tinker with documents, but it is still important not to overstay the period for applying for a deduction. If you decide to receive compensation directly from the tax authority, the return can be submitted at any time in the year following the year of acquisition. For example, if it is 2019, it is not too late to contact the tax authorities even in mid-December 2020.

It is important to consider that tax refunds are only possible for the last three years. So, if a person who bought real estate in 2015 did not immediately file a declaration and then decides to do so in 2019, the deduction will only be for 2016, 2017 and 2018. Unfortunately, in this case, 2020 is already irretrievably lost for applying for benefits.

If you plan to receive a deduction directly from the employer (monthly), you can contact him with a corresponding application and present the received tax notice. After which the accountant will begin to calculate wages in a new way from the month when this document was presented to the employer. In this case, the tax paid by the employer since the beginning of the year is refunded.

Where to get a deduction: from the Federal Tax Service or from your employer

For personal income tax, a tax period of 1 calendar year is defined. Initially, you can contact the Federal Tax Service only in the year following the date of registration of the property. The inspectorate is provided with a certificate of the amount of personal income tax at a rate of 13% actually transferred to the budget for the period in which the transaction was completed.

The Federal Tax Service calculates the tax taking into account the application of the required deduction and returns the overpayment to the bank account of the real estate buyer. The benefit may be provided in an amount not exceeding the applicant's annual taxable income. The balance carries over to the following periods.

You can take advantage of the deduction from the employer, who is the tax agent of its employees in relation to personal income tax, immediately after registering ownership of the property. In this case, taxes are calculated and withheld according to the following scheme:

After registering the property in the Unified State Register of Real Estate, the employee provides the necessary documents to the inspectorate.
No later than 30 days from the date of application, the Federal Tax Service must issue Notification f. 1120115, indicating the right to a deduction indicating its amount. It is issued for a specific employer; if the taxpayer works for several, a separate document must be taken for each.
The employee provides notice to the employer. From this moment on, no tax is withheld from wages. For the period elapsed from the beginning of the current year until the notification is received, the taxable base is recalculated, and the withheld tax is returned to the employee.
At the end of the tax period, the employer reports to the Federal Tax Service using Form 2-NDFL.
In order not to pay tax next year, the employee must again receive a notice; the amount of the deduction will be reduced taking into account what has already been provided.

The taxpayer can use one of the forms of benefits of his choice. You can contact the inspection at any time, no matter how many years have passed since the date of purchase. There are no restrictions, however, when determining the amount of deduction, the inspection will be guided by the provisions in force at the time of the transaction.

Working pensioner

Previously, the Tax Code contained a restriction according to which working (income-earning) pensioners could not transfer a property deduction. However, on January 1, 2014, changes were made to the Tax Code of the Russian Federation that removed this absurd restriction. Accordingly, since 2014, not only pensioners who have no income, but also those who continue their working activities can take advantage of the right to transfer the property deduction to the previous three years. (Letter of the Federal Tax Service of Russia dated 04/28/2014 No. BS-4-11/ [email protected] , Letters of the Ministry of Finance of Russia dated 05/15/2015 No. 03-04-05/27966 and dated 04/17/2014 No. 03-04-07/17776).

Example: In 2020 Zhuravlev A.K. reached retirement age, but continued to work. In 2020, he purchased an apartment worth 3 million rubles. At the end of the 2016 calendar year, Zhuravlev A.K. will be able to submit documents to the tax office at the place of registration to receive a property deduction for 2020, 2020, 2014 and 2013 (since he is a pensioner and has the right to transfer the deduction). If the tax he paid for 2013-2016 is not enough to completely exhaust the deduction, he will be able to continue to receive it in subsequent years.

An example of calculating a tax deduction for the purchase of an apartment

We analyze both examples for housing purchased after January 1, 2014.

Example 1: At the beginning of 2020, you bought an apartment for 2,500,000 rubles. You officially worked all year and received a salary of 60,000 rubles per month. Thus, at the beginning of 2020, you have the right to contact your tax office at your place of residence and write an application for a refund for the purchased property. The maximum that you are entitled to in this case is 13% of 2,000,000, i.e. only 260,000 rubles. Because your annual income tax deductions for 2020 amounted to a total of 93,600 rubles (60,000 * 0.13 * 12), then you can count on this exact refund amount (93,600) in 2016. The rest of the money will be returned to you in subsequent years if you are still officially employed. For example, in 2020 you officially worked only three months with a salary of 20,000 rubles, so at the beginning of 2020 you can receive a tax deduction equal to 7,800 rubles (20,000 * 0.13 * 3). Thus, for subsequent years you will still have an amount to return equal to 158,600 rubles (260,000 - 93,000 - 7800).
Example 2. You purchased an apartment worth 1,500,000 and received a tax deduction for its purchase. In this case, you can count on 195,000 rubles (13% of 1,500,000). But later you bought another apartment worth 2,000,000 rubles. Accordingly, according to the law, you can return another 65,000 rubles (13% of 500,000) from this purchase, since the total limit for return is limited to 2,000,000 rubles.