The procedure for reimbursement of personal income tax when buying an apartment

The right to return 13% of the cost of the purchased apartment can be used only once in a lifetime. Therefore, it is worth considering when to apply it: when initially buying a small-sized studio, or in the future, when there will be an opportunity to buy large-sized luxury real estate.

According to Art. 220 of the Tax Code of the Russian Federation, any citizen of Russia is entitled to a personal income tax refund when buying an apartment, in the amount of 13% of the amount spent on the purchase of housing, but not more than 250 thousand rubles in total.

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Each payment of money under this law should not be more than the amount of taxes paid for the past year. If the amount due to be paid exceeds the amount of taxes paid for the year, the deduction can continue for several years until all the money is returned.

If the housing was not purchased for cash, the buyer acquires the right to a tax refund also from the amount of accrued bank interest.

Ways to provide a tax deduction

The deduction is made by not withholding 13% payroll tax

Advantages:

1. There is no need for a time-consuming procedure for filling out a tax return.
2. No need to wait until the end of the tax period.
3. The tax deduction is minimally reduced in real terms due to inflation;

Disadvantages:

• A refund can only be received from one employer; when working part-time, you will have to choose an employer who pays a higher salary.

Refunds are made for the reporting period through the tax office

Advantages:

• If the buyer of the apartment has several sources of income subject to personal income tax, the refund can be made in a single amount in cash.

Disadvantages:

1. The method requires labor and time to fill out the declaration.
2. By the time the refund is received, its amount may decrease significantly due to the depreciation of the ruble.

According to Art. 78 of the Tax Code of the Russian Federation, the local tax service should be contacted no later than three years from the date of the transaction.

To implement the first method of deducting tax, you will need to write an application in the prescribed form and attach to it the necessary documents on the transaction for the purchase of residential real estate. On their basis, the tax officer will issue a certificate.

If you choose the option to return money through the tax service, you must go through the following steps:

1. Obtain 2-personal income tax certificates at the place (places) of employment for the past year.
2. Collect documents confirming the applicant's right to a tax deduction.
3. Write an application about the desire to return the already paid income tax, indicating the details of your bank account.
4. Obtain the decision of the local tax authority on your application.

A refund of 13% of the transaction amount will only occur if the tax in this amount has already been deducted from your salary.

The return of personal income tax is made only if there are documents confirming that it was actually withheld from the official earnings of the buyer of the apartment for the past calendar year and transferred to the state budget.

The cost of buying an apartment

According to Art. 333.33 of the Tax Code of the Russian Federation, individuals pay a state duty in the amount of 1 thousand rubles, legal entities - 15 thousand rubles.

If several applicants apply for the right to register property, the fee is paid to each of them in the amount of proportionally calculated shares.

The seller or the buyer can pay for the registration of the contract, depending on the agreement between them. But the buyer definitely pays for the registration of ownership.

If among the buyers there are persons exempted from paying the state duty by law, the amount of the duty is reduced by the amount of their share.

Required documents

To receive a deduction to the tax office at the place of work after the transfer of ownership of housing, you must provide documents and their copies:

1. Passport or document replacing it.
2. Your TIN, and co-owners (if any).
3. Certificate of state housing registration.
4. Purchase and sale agreement with the amount of the transaction indicated in it.
5. Act of Handover.
6. A receipt from the seller on receipt of money for the apartment, indicating their amount.
7. Information about the employer. A 2-personal income tax certificate from the employer is required, which confirms the income received over the past six months.

The list of documents can be increased or decreased by the municipal authority. It's best to check it out before applying.

For example, a 3-NDFL certificate is formally required, but the local administration may exclude it from the list of mandatory documents. Failure to provide a TIN will complicate the deduction, but by law, citizens are not required to have a TIN.

Inaccuracies in the collection and execution of documents can prevent the return of personal income tax when buying a home:

1. Filling out the declaration with errors. In this case, the tax authority will return the documents to you to correct errors, which will delay the time for receiving the money.
2. Lack of any documents, their incorrect execution by the persons who issued them. Before submitting documents to the tax office, make sure that their full package is collected, all the necessary data are available in them.
3. There is no confirmation of the expenses of the buyer of the apartment or the purpose of paying the money in the documents is reflected incorrectly.
4. The tax return application was incorrectly completed.
5. The applicant's bank account details are incorrect.

To receive a deduction from the tax office in the form of compensation in a single payment of taxes already accrued on wages, you must provide the following documents (and their copies):

1. Completed form of Declaration 3-NDFL.
2. Personal statement of desire to receive a deduction.
3. Information about the received amounts of official earnings for the past year.
4. Certificate of assignment of TIN.
5. The passport.
6. Documents confirming the right.

Popular questions and solutions

How to fill out a declaration for a personal income tax return?

Form 3-NDFL, required to fill out the Declaration for the tax deduction in 2015, was approved by order of the Federal Tax Service dated 11/11/2011.

A housing deduction is possible on taxes that you actually paid in the last three years. More time may have passed since the purchase of the apartment.

First, we get a personal income tax-2 certificate in the accounting department for each year for which you want to receive a deduction.

You can, of course, fill in all the lines of the form yourself. But it is better to use the Internet and download a program designed to automate this process from the website of the Federal Tax Service. It will be necessary to correctly enter the required data into it, get the finished file and print it.

What are the deadlines for receiving a deduction?

If you want to receive a tax deduction in cash, you should contact the tax office one year after the date of purchase.

After you send the documents to your FTS inspection, they must check it within three months. Based on the results of the check, you should be given a decision to grant a deduction or a refusal.

Then, within a month, the required amount will be transferred to your bank account. It will not be paid immediately, the payment will be made in equal tranches over a certain period of time. If this is done through an employer, 13 percent of last year's salary will be paid immediately, the rest will be evenly distributed with your monthly salary.

In case of violation of the tax legal payment deadline, the applicant has the right to demand from the inspectorate the payment of a fine accrued daily based on the refinancing rate. If the applicant missed the deadline for filing documents for the return of personal income tax, he must prove in court the good reasons for such a omission. As a rule, without the help of a qualified lawyer, it is extremely difficult to achieve a positive decision in this matter.

Conclusion

The deduction may be denied if the applicant bought an apartment from a relative. Moreover, the law does not specify the degree of kinship. Therefore, if there is any suspicion of the applicant's relationship, a lengthy legal process can be expected. If it ends unfavorably, the applicant may be charged with fraud.

It will also be denied the payment of part of the means of payment for an apartment received from maternity capital, state or corporate funds. Great difficulties will arise with the return of tax in case of advance payment for housing in a house under construction. In this case, most likely, you will have to wait for the final act of the state commission on commissioning the house.

In these cases, applicants will certainly need qualified legal assistance. If in doubt, it is better to apply for it immediately after the purchase and sale transaction.