For many of our compatriots, the acquisition of an apartment or the construction of a house is a rather difficult thing in terms of finance. The state seeks to provide all possible assistance to citizens (personal income tax payers) by returning to them some of the money spent on the purchase of housing. For this, a special tool is intended – property deduction. More details with the concept of property deduction can be found at the link.
The mechanism of action of this tax benefit is as follows: the taxable income of citizens for the reporting period (year) is reduced by the amount that they spent on the purchase of housing. You can formulate this easier: the income of the taxpayer spent on the purchase of housing is exempted from taxation. However, freed – strongly said. The taxpayer is forced to first pay the tax, submit documents for receipt of the deduction and, in the event of a positive decision, get the already paid money back.
The amount of personal income tax according to the current legislation is 13 %. If your income subject to taxation has amounted to 500 thousand rubles over the past year – this means that the employer withheld 65 thousand rubles of tax. If you apply for a property tax deduction, document the fact of the purchase of housing worth, for example, 1 million. rub., then your taxable income for the past reporting period will be reduced by 500 thousand. rub. As a result, the tax paid to the budget will be completely returned to you – 65 thousand. rub., and an unused tax benefit (500 thousand. rub.) will be transferred to the next reporting period (year).
The Tax Code of the Russian Federation provides for a restriction of property deduction: no more than 2 million rubles. If the cost of your purchased housing is 3 million. rub. – You can issue a tax deduction for only 2 million. rub. If your apartment is purchased using a mortgage, you have the right to receive a tax benefit for the entire amount of the bank interest paid, despite the deadline for repayment of a mortgage loan. Examples of calculation of property deduction are available on the website “Verny Tax”.
Property deduction is provided to working citizens paying personal income tax. Accordingly, pensioners, students and other non -working citizens cannot use this tax benefit. The taxpayer can only receive a property deduction only once. To apply for it to the tax inspectorate, you need to submit: a declaration (3-NDFL), a certificate of income, copies of documents confirming the fact of the acquisition of housing and its value.
