We reduce and pay tax on the sale of a house with land

Having ownership of real estate makes it possible to dispose of it by selling it to third parties. In this case, the seller receives income in the form of the value of the sold property, as a result of which he will have to pay a tax on the sale of a house with land to the state.

How is tax liability calculated?

Tax liabilities upon alienation of real estate are calculated as the difference between the costs of its acquisition and the amount of proceeds from the sale.

For example, in order to correctly calculate income and pay tax on the sale of land, the purchase price must be subtracted from the proceeds.

Since the fate of a residential building and a plot of land are inextricably linked, they are subject to alienation as part of a single transaction.

Since these objects are independent real estate units, the sale will be carried out taking into account the following nuances:

• the law allows for the execution of a single agreement for the sale of a house and land, however, from the total amount of the transaction, it is necessary to separate out in the agreement the cost of the allotment and the residential building;
• it is allowed to draw up independent contracts for the sale of a house and land, however, they must be submitted simultaneously to the registration procedure;
• The obligation to calculate and pay the amount of tax on the sale of a house with a land plot arises for the seller from the moment the transaction is registered with the Rosreestr service.

Note! It is advisable to indicate in the contract the real price of real estate that the seller will receive. In most cases, the Tax Code of the Russian Federation allows for the possibility of significantly minimizing or completely eliminating the tax liability, and the undervalued value will not allow making claims in the event of a dispute between counterparties.

Legislation of the Russian Federation

In order to correctly calculate and pay personal income tax after completing a transaction for the sale of a house and land, you must be guided by the following acts:

• Tax Code of the Russian Federation, in terms of determining the tax base and possible preferences when calculating tax on the sale of land and houses;
• Civil Code of the Russian Federation, regarding the requirements and conditions for the preparation of documents for the sale of these objects;
• Land Code of the Russian Federation, regarding the conditions for the sale of certain types of plots.

In order to correctly calculate the amount of tax on the proceeds when selling a house with a land plot, the provisions of the Tax Code of the Russian Federation will be of key importance.

The period during which you owned the land

The duration of ownership of the specified property will be important for tax purposes - the Tax Code of the Russian Federation provides for the possibility of completely eliminating the obligation to make payments to the budget:

1. If you sell a house with a land plot that has been owned for more than 3 years, tax is not payable, and the seller is also eliminated from the obligation to declare the specified amount.
2. If the property is owned for less than 3 years, then you will need to pay tax. And you can calculate its amount here .

It is necessary to take into account the independent legal status of a private house and a plot of land.

For example, if the plot of land was purchased for development 10 years ago, but the registration of rights to the erected structure took place only a year ago, the sale of the land will be exempt from tax payments, while income from the sale of the house will be taken into account as part of the tax base.

Where to go

Tax on land and house when selling them to third parties is subject to transfer in the following order:

• after the counterparties conclude a purchase and sale agreement for a house and a land plot, they are subject to registration with the Rosreestr service;
• before 30.04 of the next calendar year, the seller is obliged to submit to the territorial inspection of the Federal Tax Service a declaration form 3-NDFL on income for the sold land plot and residential building;
• Personal income tax on the sale of a house with land must be paid by July 15.

Note! Since the purchase and sale of a private house with a land plot for a period of ownership of three years eliminates the obligation to pay taxes, there is no need to file a declaration. To clarify the existence of the right to exemption from tax obligations, it is enough to check the dates of acquisition and alienation of property.

List of documents for the tax office

A person who, in the previous year, sold a house with a land plot under a purchase and sale agreement is obliged to report on the income received by April 30 .

To do this, the following forms and forms are sent to the territorial inspection of the Federal Tax Service:

• declaration form 3-NDFL, recording the amount of income and the amount of personal income tax on sales;
• the applicant's general passport;
• TIN certificate;
• purchase and sale agreements for a house and a plot of land or a single transaction agreement;
• an application for a deduction regulated by the Tax Code of the Russian Federation (this document is submitted only if the applicant has the right to a deduction).

These documents are submitted in person to the Federal Tax Service or through a representative by proxy.

Online tax calculator

The tax on the sale of a house with land is calculated based on the base rate of 13%, and payment of tax obligations must be carried out separately for each real estate item.

For example, if the cost of a residential building was 2 million rubles, and the price of land was 500 thousand rubles, tax liabilities must be calculated in the following amount:

• for a house: 2 million rubles x 13% = 260,000 rubles;
• for land: 500 tons of rubles x 13% = 65,000 rubles.

The total amount will be 325,000 rubles.

However, it must be taken into account that the costs of its acquisition can be deducted from the proceeds from the sale (this is how the seller’s income will be determined).

If the purchase and sale amounts are equal, no income arises, and the tax amount will be zero (the declaration in this case must be completed and submitted in the general manner).

In addition, the law allows for a special deduction for personal income tax; these issues are regulated in the Tax Code of the Russian Federation.

How to reduce tax?

To find out who is exempt from paying tax and how to get a tax deduction, just refer to the provisions of the Tax Code of the Russian Federation.

In 2017, the amount of tax liabilities is reduced on the following grounds:

• in relation to one of the specified objects, it is allowed to reduce the proceeds by a deduction in the amount of 1 million rubles. (the right to tax deduction is granted on the basis of an application submitted along with form 3-NDFL);
• in relation to the second object, it is allowed to reduce the proceeds by the actual costs incurred for the acquisition or construction of the object;
• simultaneous application of these preferences in relation to each object is not allowed.

Thus, the law makes it possible to significantly reduce the size of tax obligations or completely eliminate them.

Fines

Selling real estate without submitting a declaration form and paying taxes is only allowed if you have owned the real estate for more than three years.

In other cases, violation of deadlines for filing a declaration or evasion of tax payments will entail a significant fine.

Violation of the procedure for submitting the declaration form is subject to a punitive sanction of 5% of the amount, and the maximum amount of sanctions can reach 30% of the amount payable to the budget.