When buying a home, the tax deduction for an apartment is based. It consists of several parts, but is always available and amounts to a significant amount. In order to work properly with this aspect, you need to get to know its functions.
What is the tax deduction?
There are three components that make up the tax deduction for an apartment:
- For the new construction or purchase of a finished building object of the Russian Federation or a certain portion of land.
- For the repayment of interest on loans taken out in organizations of the Russian Federation or by private entrepreneurs.
- Reduce interest on loans taken out with banks when the amount is building or buying a finished part of the home
The amount of the tax deduction
Maximum tax deduction for an apartment amount you can get when you buy an apartment worth 2 million USD. If the total amount of the purchase is higher, the tax deduction is still calculated from 2,000,000 USD. The largest deduction amount can be applied to an acquired property and to its group.
When to buy your own home When a loan is taken out, the tax deduction for an apartment is calculated from the maximum amount of 3 million USD. This amount is not used to cover the costs associated with buying an apartment, but rather to pay the loan taken out. Tax deduction restrictions apply to loans drawn after January 1, 2014.
If a person who is a taxpayer has not received all payments in full, they can receive the balance at the beginning of the next tax period.
Expenses when calculating the tax deduction
When a new building is carried out or a property is acquired in a finished house, these expenses are determined:
- Design documents for which projects are executed and estimates are calculated
- Purchase of various materials for the construction of buildings and additional equipment.
- Acquisition of residential buildings, taking into account cases in which an unfinished apartment is acquired
- Implementation of works for the construction and decoration of components.
- Organization of a complete communication line, including the supply of light, water and gas.
Calculation of the tax deduction when buying an apartment
The amount of the tax deduction includes the following components:
- Acquisition of residential buildings.
- Purchase rights to a specific property in a house that has not yet been completed.
- Purchase of all necessary materials for construction.
- Theses are involved directly on the property that was purchased exclusively for living. This position also includes the design documentation that determines the estimate for the entire list of additional work related to the completion and completion of residential buildings.
Since the building is completed by the end of the construction work and cladding, the contract for the purchase of apartments must state that the house has not yet been completed. Other expenses that are not included in the list do not play a role in preparing the tax deduction. If you have to redevelop, buy furniture and sanitary facilities and plan all the necessary transactions, all of these citizens have to sell for personal money. When a pensioner buys an apartment, a tax deduction is only calculated automatically if he is actively working and is officially employed.
The tax deduction is not used in some situations.
Cases where the tax deduction is not taken into account:
- In the event that the payment for the construction or completion of housing has been made on behalf of employers or other persons, part of the amount of the maternity capital or the financing in the budget has to be paid.
- When the standard contract for the sale of an apartment is signed between relatives, ie dependent parties.
The exact amount of tax deduction
If the property was purchased in parts only for the property until January 1, 2014, the tax deduction will be divided equally among the owners. After that time this privilege was withdrawn. The real estate deduction is paid to each owner, depending on what part of the costs they incurred when purchasing a particular property.
If parents and their children buy accommodation, you have the right to refuse part of the tax deduction and to pay the full amount because it goes into a family. In some cases, apartments are purchased under an exchange contract against payment. In this case, the tax deduction is also distributed across all parameters, since the conclusion of this contract does not contradict the law, in particular the requirements of the Civil Code of the Russian Federation.
Property according to which both spouses buy marriage, their shared property is recognized, so the tax deduction is given to them without a branch. In this case, the amount will be divided by mutual agreement.
How do I get a tax deduction?
To receive a tax deduction, you must be a taxpayer and do the following:
- The declaration is carefully completed, guided by a single 3-NDFL form.
- The accounting reference to be found at the place of work is brought. It shows the amount received and retained. It is developed in a single 2-NDFL form.
When calculating a tax deduction for an apartment, the documents in the following list are prepared:
- Certificate of Confirmation of RegistrationOwnership rights required for the independent purchase of a pre-built house and a construction object that is currently being completed
- Proof of purchase of an apartment or room and the transfer of a complete apartment or part of the apartment. Appropriate certificate for registration of property. The list of documents depends on the type of transaction.
- If the purchase of a property takes place, If a certain building is built independently, a certificate of ownership must be presented, which only includes land acquired.
Copies of proof of payment
If a tax deduction for an apartment is taken into account, documents must be created and systematized
- Confirmation that the taxpayer acquired the property with personal money. To do this, you must present certain papers. These are various receipts paid for incoming orders, bank statements that confirm the transfer of money from the taxpayer’s account to the seller’s account. Cash or sales receipts; Actions that confirm the facts of the purchase of certain goods from individuals when the required information about the seller needs to be entered – that contained in the passport.
- Proof of good payment Loan or interest accrued when a loan contract was signed. This category also includes the home mortgage. The tax deduction is calculated according to a special plan. In this case, if there are no cash checks, these documents can be special statements, as well as certificates from the organization that was involved in the lending that all the required interest was paid. If you buy an apartment, the tax deduction documents (or their presence) ensure the complete composition.
Documents for the purchase of a co-owned apartment
If co-owned housing is purchased, you must provide the following documents:
- A copy of the marriage certificate.
- A written agreement whereby each party is entitled to a portion of the tax deduction that corresponds to the funds consumed or was transferred by personal agreement.
Property tax deduction for an apartment when applying to an employer
Contact the employer, the tax can be deducted before the end of the tax period, but you must first confirm the right to receive this privilege with the tax authority. To implement such an event, the taxpayer must:
- Write a special application. A tax deduction for an apartment can only be requested after it has been deposited. It specifies the right to deduct tax based on the facts listed.
- You must prepare copies of all documents in full, without which tax deduction for an apartment is not possible.
- At the tax authority, at the place of permanent registration, submit a correctly and carefully filled application with a pre-prepared and systematic package of the required documents. All papers must be in excellent condition so that you can easily get a tax deduction for an apartment.
- After one month for permission from the tax authority to get the full amount of tax deduction. This is the case if all the rules are followed and the person has provided a complete package of documents, otherwise, the process of education and tax deduction can be complicated and delayed.
To get a property tax deduction, you need to collect a full package of documents and be sure to contact the tax authority. The amount will only be provided if all conditions for the purchase of the property and the application have been met. Then a fairly large amount of money awaits a person or group of people.