Payment of 13 percent when buying an apartment - details of obtaining

According to tax legislation, when buying their own home, some newcomers can take advantage of benefits - the so-called property tax deduction (hereinafter also IV, NV, property deduction, tax deduction). For the first time such an opportunity appeared in 2001, but since then the legislation in this area has changed, so it is necessary to understand in detail who has the right to claim a refund of part of the funds and what steps will need to be taken to take advantage of the privilege.

What is a property deduction when buying an apartment

According to tax legislation, officially employed citizens pay the state income tax on their income (PIT). As a rule, it is charged at a rate of 13% and is automatically collected from wages. After purchasing real estate, the buyer has the right to claim a property deduction. Its essence lies in the fact that a part of the amount of personal income tax paid in previous years is returned to the citizen at a rate of 13 percent, or it becomes possible to reduce the taxable base of income that will be received in the future.

The Tax Code establishes a list of real estate, upon the acquisition of which it is possible to apply a property deduction:

an apartment built with the help of shared construction;
living space purchased on the secondary market;
detached buildings intended for citizens to live with mandatory registration there (cottages, country houses, villas, etc.);
unfinished residential buildings;
isolated rooms in an apartment or in a detached house;
land plot intended for the construction of an individual residential house;
a land plot with a residential building located on it.

When buying land, there is no way to get a tax deduction. In order to take advantage of the privilege, this site must be used for the construction of housing on it. For understanding, you can give the following example. In 2015, a citizen purchased a land plot, but built a house there only in 2017. He can start receiving interest returns only from 2017, when the construction was completed and the house was put into operation.

In addition to the above-mentioned real estate objects, the legislation also puts forward additional requirements:

the property must not be used for commercial purposes;
real estate is intended for people to live there (deduction is not provided if the premises were transferred to a non-residential fund);
the property is located in Russia.

Who should be

Not everyone is entitled to payment of 13 percent when buying apartments or other real estate. A number of provisions have been established by law when the buyer is entitled to take advantage of the tax benefit:

Only taxpayers, that is, those individuals whose income is subject to taxation at a rate of 13%, can take advantage of the opportunity to return part of the money paid.
The privileged category includes tax residents - persons staying in Russia for at least 183 calendar days a year. If a citizen has left the country for medical treatment, education, work in offshore fields for a period of less than 6 months, the period for calculation is not interrupted. Military servicemen serving outside the Russian Federation, representatives of all authorities and local self-government are a priori considered tax residents, even if they have never visited the country during the year.
For residents of Crimea and the city of Sevastopol, the calculation of tax residency begins on March 18, 2014.
Square meters should be purchased for your own needs. This means that the buyer must register it in their own name. The only exceptions are cases of purchase (construction) of real estate for their children (including adopted, ward), if they are under 18 years old.
Payment of 13 percent on the purchase of an apartment is due to each of the spouses if the property was purchased after January 1, 2014.

Who cannot qualify for payment

Speaking about citizens who can take advantage of the tax exemption, it is necessary to mention those to whom the rule does not apply:

non-residents of the Russian Federation;
pupils and students;
military personnel;
orphans who are fully supported by the state;
unemployed pensioners if they did not take advantage of the opportunity before the expiration of the three-year tax period;
minors, as a deduction for them is given to working and tax-paying parents;
citizens who are unemployed and do not pay personal income tax;
individual entrepreneurs who use a taxation system in their activities, which does not provide for the possibility of paying 13 percent of income tax;
individuals who have purchased living quarters from close relatives, which include spouses, parents, children, adoptive parents, adopted children, grandchildren, grandfather, grandmother, siblings and (or) sisters - all those who, according to article 105.1 of the Tax Code of the Russian Federation, are interrelated persons ;
owners of real estate who received it from the employer or at the expense of the regional budget.

Legal regulation

The main document that regulates the return of 13 percent when buying an apartment is the Tax Code of the Russian Federation. In addition, it is necessary to take into account the law No. 212-ФЗ dated July 23, 2013, which made the main changes to the Tax Code of the Russian Federation. The tax legislation of Russia is constantly being improved, therefore, ordinary citizens often have questions regarding the payment of 13 percent when purchasing an apartment. The Ministry of Finance constantly publishes answers to pressing questions. For example:

letter of the Ministry of Finance of Russia dated 12.12.2017 No. 03-04-05 / 82787, which deals with the possibility of obtaining NV when buying an apartment, room or a certain share in them;
letter of the Ministry of Finance of Russia dated 12/14/2017 No. 03-04-05 / 83678, which deals with the return of property deduction in the case of shared construction of an apartment;
letter of the Ministry of Finance of Russia dated 03/15/2018 No. 03-04-05 / 15871, highlighting the issues of the possibility of re-compensation of HB, if a citizen has previously received a deduction in relation to real estate purchased or built before January 1, 2014.

Refund 13 percent on the purchase of an apartment

Every person who has faced the problem of buying or building real estate knows that the difference in cost can reach huge numbers. So, for example, for the money that will have to be paid for an apartment in the capital, you can buy more than one in a remote district center. The legislation does not take into account such a difference, therefore, for all, the maximum amount with which personal income tax is returned at 13 percent is set:

2 million rubles when buying or building an apartment for your own funds (including using installments and non-mortgage loans);
3 million using targeted housing loans issued by commercial banks.

Since the income tax is 13 percent, the maximum possible refund amount will be equal to:

260 thousand rubles when buying with your own money (2,000,000 × 13% = 260,000);
390 thousand rubles when purchased using a mortgage (3,000,000 × 13% = 390,000).

Refund of personal income tax when buying an apartment or other real estate cannot exceed the amount of income tax paid last year. This means that if the owner was refunded the amount of personal income tax less than the amount specified by law, he will receive the rest in the next year (s). If the price of the purchased or constructed real estate is less than 2 million rubles, a person can use the tax deduction again at the next purchase, and so on until the value of all acquired objects in the amount equals the established value.

The amount of the deduction

There are no restrictions on the cost of purchased housing. An apartment or a house can cost 100 thousand or 100 million rubles. You can only receive a maximum of 260 thousand when using your own funds or 390 thousand when a mortgage is involved in the calculation. In connection with the adoption of Law No. 212-FZ, the approaches to calculating the amount of refund have changed, since until 2014 the one-time method was in force in calculating NV:

Calculation procedure

For a better understanding, you can consider a few examples that will clarify how to calculate the return of 13 percent when buying an apartment and other real estate:

Example 1. A citizen purchased a dwelling worth 500 thousand rubles. The payment was 65 thousand rubles:

500,000 x13% = 65,000.

Example 2. A citizen purchased a residential property worth 4.5 million rubles. The payment was 260 thousand rubles:

2,000,000 x 13% = 260,000, since the maximum from which interest is returned cannot exceed 2 million rubles.

Example 3. A citizen purchased a dwelling place for 1 million rubles using a mortgage loan. The payment was 130 thousand rubles:

1,000,000 x 13% = 130,000.

Example 4. A citizen purchased a dwelling worth 6 million rubles using a mortgage loan, and returned the remuneration equal to 5 million rubles to the bank. The tax deduction for interest paid will be 390 thousand rubles:

3,000,000 x13% = 390,000, since the maximum amount that is the basis for the deduction cannot exceed 3 million rubles. provided that a home loan was used.

Example 5. A citizen purchased a dwelling worth 700 thousand rubles. The payment was 91 thousand rubles:

700,000 x 13% = 91,000.

After some time, he bought another apartment for 1.5 million rubles. Since he has already been provided with NV, the next time the amount of payment cannot exceed 169 thousand rubles:

260 000 – 91 000 = 169 000.

13 percent of the price of the second apartment is 195 thousand rubles:

1,500,000 x 13% = 195,000, but since this amount is more than the remaining amount, he will be able to receive only 169 thousand rubles.

Example 6. A citizen purchased a dwelling worth 400 thousand rubles. The payment was 52 thousand rubles:

400,000 x 13% = 52,000.

After some time, he bought another apartment worth 600 thousand rubles. The payment from it amounted to 78 thousand rubles:

600,000 x 13% = 78,000.

If in the future he thinks about buying a third apartment and so on, then the maximum that he can get as a property deduction will be 130 thousand rubles:

260 000 – 52 000 – 78 000 = 130 000.

Example 7. A citizen purchased a dwelling in 2016 worth 1.4 million rubles. The payment was 182 thousand rubles:

1,400,000 x 13% = 182,000.

According to the payroll, the size of personal income tax for the year amounted to 160 thousand rubles. This means that the amount of 22 thousand rubles. (182,000 - 160,000 = 22,000) will be transferred to him next year, since according to the law, the return of interest on the purchase of an apartment cannot exceed the amount of personal income tax paid.

Mortgage Lending Tax Deduction

Citizens who purchase real estate using a bank loan can also claim a tax deduction, and 13 percent of the purchase of an apartment in the mortgage is returned twice:

from the amount of the cost of a dwelling, but not more than 2 million rubles - this is 260 thousand rubles;
from the amount of interest returned for the use of borrowed money, but not more than 3 million rubles - this is 390 thousand rubles.

Using the summation method, you can understand that the maximum possible amount of tax deduction to be returned for the purchase of real estate on a mortgage is 650 thousand rubles (260,000 + 390,000 = 650,000). According to the information announced in the Tax Inspectorate, initially the buyer is transferred the amount from the cost of the dwelling, and then the repayment of interest. Refunds are allowed:

Through the tax authority located at the place of registration of the applicant. To do this, you must submit an application and a certain package of documents (the full list should be checked with the employees of the Federal Tax Service). The application is considered for 3 months, after which the money is transferred to a bank account. The option is beneficial in that the entire amount is returned in a single payment, but only on the condition that it does not exceed the total amount of personal income tax paid for the previous year. Otherwise, the balance can only be received next year.
At the employer. This can be done only within the first three years after the purchase of a dwelling. After submitting an application and a certain list of documents, the employee will no longer be charged income tax from his salary. This will continue until the total amount reaches the due amount.

Peculiarities of receiving payments by pensioners

Citizens who have gone on a well-deserved rest also have the right to IW. To do this, you must fill out the 3-NDFL form, having issued the transfer of the deduction for the previous 3 years. If a citizen continues to work after retirement, he can apply for a tax refund when buying an apartment for both previous and future years. The procedure for issuing a deduction for pensioners does not differ from the generally accepted one and will be discussed in detail below.

There are several features of obtaining a refund of paid personal income tax, which can be described in the following examples:

The pensioner purchased a dwelling after retirement and continues to work. A citizen went on a well-deserved rest in 2016, and bought real estate in 2017. Interest compensation is paid in 2019 for 2017, and the transfer is carried out to previous pensions for three years: 2015, 2014, 2013. If, having issued a deduction, the pensioner has a balance (the amount of personal income tax paid for three years did not cover the amount established by law), he can postpone it for the next periods while receiving wages. In this case, his income at the official place of work will not be subject to personal income tax until the limit is chosen.
The citizen bought an apartment, and then retired. The property was purchased in 2016, and the pensioner went on vacation in 2017, but continues to work. The deduction in 2019 is issued for 2017, and in 2017 - for 2016. Transfer is possible for 2016, 2015, 2014 (three years before retirement). Since the refund has already been received for 2016, the transfer is only allowed for 2015 and 2014.
The pensioner retired in 2016 and no longer works, but bought an apartment in 2017. The transfer can be made in 2019 for 2015, 2014 and 2013.
The pensioner retired in 2010 and did not work anymore, but bought the dwelling in 2017. In 2019, the transfer is possible to 2016, 2015, 2014. Since the citizen did not work during these years, he will not be able to receive a deduction, but if the purchase of an apartment was purchased in marriage, and his wife continues to work or retired recently, it is possible to issue an NV for her.
The dwelling was purchased in 2017. This year the pensioner went on a well-deserved rest and does not work anymore. The tax deduction in 2019 can be issued for 2017, and the balance is carried over to 2016, 2015 and 2014.

How to get 13 percent back on an apartment purchase

The tax deduction is received according to the application system, therefore, in order to return the paid tax, you must yourself contact the tax authorities or at your place of work. The step-by-step instruction looks like this:

Purchase real estate and register ownership of it.
Contact the tax office at the place of registration during a direct visit or through your personal account.
Provide all the necessary documents and fill out an application.
Wait for the decision (three months are given for consideration and verification of the documentation).
With a positive decision, choose:
- receive the amount due by transferring it to a bank account;
- pick up a certificate to provide it to the employer for subsequent return.

List of required documents

When applying for a tax deduction, you need to prepare certain papers. Their list is strictly regulated and looks like this:

Where to go

Payment of 13 percent for the purchase of an apartment will be made only after the submission of the relevant application. This can be done in two ways:

through the tax authorities by a one-time payment of the entire amount in the year following the year of the purchase of the dwelling;
through the employer, while income tax will not be deducted from the citizen until the entire amount is returned, but for this it is necessary to receive a notification from the Inspectorate of the Federal Tax Service at the place of registration and provide it to the employer along with the application.

Terms of receipt

It is legally established that there is no limitation period for obtaining IW. This means that you can get money for overpaid interest at any time, but from income received in the last three years preceding the date of application. If during this period a person did not receive a salary or other payments subject to 13 percent of personal income tax, he will not be able to receive a deduction.

The procedure for consideration of the application and the submitted documents by the specialists of the Tax Inspectorate takes 3 months, although the answer may be received earlier. Another 10 days are allotted to notify the applicant of the decision. If the money is transferred through the Federal Tax Service, one month is allotted for this after the decision is made. If the deduction is returned through the employer, personal income tax is not charged until the entire amount is paid.