Ways to return 13 percent of the purchase of an apartment for a mortgage and pensioners

The Tax Code provides for a property deduction rule. According to this norm, a taxpayer who is the owner of a real estate property, be it an apartment, house, cottage or room, can return 13 percent of its purchase.

Will this 13 percent be returned now?

According to Art. 220 of the Tax Code of the Russian Federation, a person who is a taxpayer has the right to draw up a property deduction under the following circumstances:

• from the purchase of real estate (including reimbursement of part of the expenses);
• from the sale of real estate (corresponding reduction in the tax base).

A refund of 13% on the purchase of an apartment can be issued at any time after the end of the reporting tax period in which the property was purchased. In other words, if the purchase and sale agreement was concluded in 2018, then the taxpayer (buyer) has the right to a refund only from January 1, 2019 (if these documents ).

There are restrictions when receiving 13 percent is impossible:

• the apartment was purchased with funds provided by the state under the terms of preferential subsidies;
• the specified deduction was received in full earlier;
• the owner did not purchase the property at his own expense (for example, the event was sponsored by a legal entity that is the employer of the current owner);
• The property was purchased from a close relative.

Returning 13 percent from the purchase of an apartment or other housing is allowed only once in a lifetime . An entity that has exercised this right earlier, when purchasing the first property, will no longer be able to realize it during the purchase of the second.

Who can issue a refund?

Categories of citizens are allowed to return money from the purchase of a house or apartment, subject to the following conditions:

• presence of Russian Federation resident status;
• only the income tax payer can issue a refund (this obligation must be performed at least once in the last 3 years);
• pensioner (if during the tax period he paid income tax from another source of income, profit not related to the pension);
• persons registered as individual entrepreneurs (when working under the standard taxation system or who made tax deductions from another type of profit, including the sale of any real estate).

For which purchases are personal income tax refunds issued?

A 13 percent tax refund is allowed on the following properties:

• an apartment or a share in the right to it;
• house or its share, part;
• a plot of land with a building located on it;
• a plot of land without buildings, but intended for individual housing construction.

How to calculate property deduction?

The scope of calculating the property deduction may include:

• redemption value of the immovable property;
• mortgage overpayment percentage;
• costs incurred for finishing the premises;
• costs associated with the development of design documentation for construction;
• costs of connecting the facility to communications (heating, electricity, etc.).

To calculate the due deduction, you need to know the amount of personal income tax. The Federal Tax Service will accept for refund only the amount that the citizen paid to the state treasury as income tax for the past year.

For example: if a citizen paid income tax on wages in 2017 equal to 70 thousand rubles, then in 2018 he can return only this limit, the rest of the amount must be received next year, up to reaching the total deduction amount of 260 thousand.

The procedure for receiving 13 percent from the purchase of an apartment

The procedure for obtaining a tax deduction varies depending on the method of purchasing housing or taxpayer status.

For mortgage

For mortgage obligations, the taxpayer becomes entitled to receive a deduction on the following grounds:

• from the amount attributable to the redemption value of the property;
• from the amount of interest that he will pay for the period of using the loan (overpayment on the mortgage).

In practice, citizen taxpayers first submit documents to receive a deduction from the redemption value of real estate, and a deduction from the overpayment percentage is issued after its execution/repayment (as we know, the overpayment is repaid first) in order to maximize the tax base.

Pensioner

Persons of retirement age, when receiving a deduction, are divided into 2 categories:

• those who continue to work despite retirement;
• who are non-working pensioners.

You can return 13 percent for the purchase of housing to a pensioner under the following circumstances:

• if the person continues to work, then the refund is made according to the general procedure - according to the amount of income tax, from a certificate from the employer;
• if the subject is a non-working pensioner, then the deduction can be made according to tax deductions made for previous years (but not more than 3 years ago).

What documents are needed to apply for a deduction?

To obtain a deduction, you must contact the tax authority at the taxpayer’s place of residence. The following package of documents will be required:

• copy of the taxpayer's passport;
• property purchase and sale agreement;
• mortgage agreement;
• act of acceptance and delivery of the object;
• a receipt confirming receipt of the redemption value of the property by the seller;
• certificate of ownership;
• certificates from the bank about all payments made on the mortgage (as of the date of application to the Federal Tax Service);
• mortgage payment receipts (if not made by automatic debit by the creditor bank);
• certificate 2-NDFL;
• declaration;
• application for a refund of overpaid income tax;
• a list of submitted documents.

How much is the refund?

Reimbursement of expenses is carried out from the following amounts:

• 2 million - when purchasing finished housing;
• 3 million - attributable to the overpayment on the mortgage loan (percentage of overpayment for the entire period of use of the bank's borrowed funds).

Citizen taxpayers have the right to claim a refund from the budget of a maximum of 260 thousand rubles (13% of 2 million rubles), regardless of the fact that the apartment cost more than the specified limit.

The income tax refund from the overpayment interest on a mortgage loan cannot exceed 390 thousand (13% of 3 million rubles).

If the taxpayer bought an apartment for less than 2 million, then the law allows the remaining amount (which in total should not exceed 260 thousand) of the deduction when purchasing the next property, but the return of the deduction from the interest on the overpayment is no longer allowed a priori, even if it the amount did not exceed 390 thousand.

How long does it take to get my money back?

A property tax deduction in the amount of 13% of the taxable base can be returned at any time after the end of the reporting tax period in which the apartment was purchased.

An important feature of this deduction is that it is not subject to the general rule of income tax refund only for the next three years. The tax office is obliged to return 13% even if the subject makes a claim after the expiration of 10 years from the date of the transaction to purchase a home.

Tax legislation provides for working citizens the opportunity to return part of the funds spent on the purchase of housing in the form of a property deduction.

Regardless of how much the apartment was purchased for, the amount of refund from the state treasury should not exceed 260 thousand rubles, and the amount of its provision is directly proportional to the amount of taxes paid on wages.