So, today we will be interested in the deadline for returning the tax deduction when purchasing an apartment, as well as the list of documents that will be required to be submitted to the appropriate authorities. In fact, this question is interesting and useful to many. After all, when paying taxes and making certain transactions, you can simply return the “nth” amount to your account. A pleasant bonus from the state that attracts many. But such a process has its own deadlines and design rules. It's not that difficult to remember them. How do you get a tax refund when buying an apartment? What documents are required? In what time frame can you take advantage of the opportunity? There must be at least some restrictions!
How many?
Yes, there are some. But more about them a little later. After all, to begin with, it’s worth taking a closer look at what we’re talking about in principle. How much can you get back from the deal? And is there a certain limit on returns? The tax deduction typically allows you to get 13% of your expenses. This process has its limitations on the amount that is returned to the taxpayer. This is 260,000 rubles. You have the right to return only funds from an apartment worth up to RUR 2,000,000. So, don't be surprised. Every place has its own rules. There is no way to get back more than 260 thousand. It is illegal.
Who is eligible to take advantage of this benefit?
Citizens of the Russian Federation have the right to take advantage of
can apply the benefit :
- Persons of working age.
- Pensioners who have income or have issued a pension no later than 3 years before the date of application.
- Minor citizens by transferring rights to parents or guardians.
Having citizenship is a prerequisite for receiving benefits. Foreign nationals or persons without specific citizenship do not have the opportunity to return tax when purchasing property or selling it.
When?
But don't worry too much. After all, the period for returning a tax deduction when buying an apartment is not so short. You will definitely have time to prepare for it. And in general, the registration will seem like a trifle if you collect the documents correctly.
What deadlines will the taxpayer have to meet? In general, property deductions, like any others, can be issued within 3 years after the transaction. That is, it is not necessary to rush to prepare documents immediately after the purchase. Yes, you don’t need to hesitate either, but panicking that you won’t have time to implement your idea is not the best technique.
In practice, the tax deduction refund period for the purchase of an apartment is usually set at 1 year. No, you can completely arrange it later. But citizens are accustomed to dealing with paperwork until the end of the tax reporting period. Therefore, in fact, they even try to get rid of deductions as quickly as possible. This is not as difficult as it may seem at first. All you need is to collect a certain list of documents, present them to the tax service, and then just wait.
Deadline for refunding tax deductions when purchasing an apartment
Today, many individuals are interested in how long it takes to return the tax deduction for an apartment. The refund period depends on the amount paid as taxes by the applicant for property compensation to the state budget. The larger the amount, the less time it will take to receive all the monetary compensation required by law.
How and with what frequency are compensation calculated?
A property tax credit is a refund of tax paid by an individual if he spent material resources on the purchase of an apartment or other types of real estate. Compensation of this kind is accrued at intervals of one year, and its amount is equal to 13% of an individual’s salary (that is, exactly as much as he paid for personal income tax for the year). This process continues until the taxpayer has fully recovered the entire deduction.
How to find out how many years the deduction will be paid in full
In order to determine for what period of time an individual will receive full compensation for the purchase of an apartment, it is necessary to perform the following steps:
- Find out the exact salary amount. As a rule, individuals receive wages with personal income tax already removed and therefore do not know what its exact amount is. Therefore, in this situation, you should contact the accounting department and clarify this issue.
- We find 13% of the salary. You need to take the amount of the annual salary, and always before the income tax is removed, and find 13% of this amount.
- We divide 13% of the deduction by 13% of the salary. After this, to set the deadline for returning personal income tax, you need to take the amount of the tax rebate, find 13% of it, and then divide the resulting amount by the figure obtained in the second paragraph.
Example calculation
For example, if the total salary of the buyer of an apartment for the year and without taking into account the removed income tax is 487,456 rubles, then 13% of this amount is equal to 63,369 rubles, which is the amount paid for the annual period as personal income tax.
If a deduction was accrued to this taxpayer in the amount of 1,650,670 rubles, then he will receive compensation equal to 13% of it. This is 214,587 rubles. Now, to find out how many years it will take for the buyer of an apartment to get his income tax back, all that remains is to divide 214,587/63,369. It turns out that this will take four years.
After submission
Now a new question arises. What is the deadline for returning a tax deduction when purchasing an apartment after submitting an application? After all, you need to understand how long the tax authorities take to consider a particular case. It is difficult to come to a common opinion here. Especially when you consider that in different regions there is a varied duration of approval of any deduction, not necessarily property.
What can you expect on average? What is the deadline for returning a tax deduction when purchasing an apartment? Feedback from taxpayers most often indicates that everything will be allotted about 4 months. This is how much the deduction will be issued after you submit your application. Of this period, only the application is considered for about 2 months. The rest of the time, funds are transferred to the taxpayer’s account. Sometimes this process lasts less, sometimes longer. But on average you should count on 4 months. This is the deadline for returning a tax deduction when purchasing an apartment after you have submitted documents for consideration. If you need to re-register, you will have to “reset the counter”. And again count down about four months. In principle, this is not such a problem.
Period
This is the most important question that worries many citizens. Within what period can I submit a tax deduction when buying an apartment? How not to make mistakes and not miscalculate? Is it possible to find out all the details of interest in advance so as not to miss time? For what period can a tax deduction be returned? Are there any restrictions here? This is a very important issue that, of course, cannot be overlooked.
In fact, the deadline for filing an application for a property deduction does not have a strict framework. The legislation here does not limit citizens to one or two months. Sufficient time is given to allow room for action. You can submit documents for property deduction when purchasing an apartment at a time convenient for you. You should not worry or rush, believing that such payments will not necessarily take place.
If you have no obstacles to receiving funds, then by law they must be received. To do this, you need to submit the appropriate documents to the tax office. A correctly completed application will bring you closer to receiving the benefits you are entitled to.
When thinking about when to apply for a tax deduction when buying an apartment, you should keep in mind that this should be done the next year after the purchase itself. This is the most correct option in which tax officials will not be able to refuse you. For example, if real estate was purchased in October 2020, then you can apply for a tax deduction starting in January 2020. There will not be much time left to wait to receive the payment due by law. The right to tax deduction is granted after the end of the tax period when the purchase was made. It is worth noting that the month the apartment was purchased does not play any role at all. Only the year of purchase matters. The return declaration can be submitted at a time convenient for the copyright holder.
Statement
Well, now it’s time to take a closer look at the immediate list of documents required to complete the operation. If you think about it, getting a tax deduction back when buying an apartment is not that difficult. You won't need a lot of paperwork. A few important points are enough. And a little patience. So where should you start?
Of course, with the preparation and writing of the appropriate application. The thing is that any deduction should be provided only if the necessary paper is available. At the request of the applicant. A sample form can be viewed on the official website of the Tax Service of the Russian Federation. There is also a form there that will help you make a request for future use. Provided in a single copy - the original.
Personality
Do not forget that any paperwork must be accompanied by the establishment of your identity. That is, you will need the appropriate document. In our case, this is nothing more than a passport. Or, more precisely, a copy of it. Make sure you have a photocopy of all pages in advance. In particular, 2, 3 and the one where registration is indicated. Information about marital status must also be available. The original is not needed to receive a deduction. A copy is sufficient. If desired, it can even be certified. But, to be honest, many people just provide a photocopy and don’t bother.
Income
The next point that you have to take into account is your income. The deadline for returning a tax deduction when purchasing an apartment cannot begin counting until you confirm your taxpayer status. That is, do not indicate income. Here you will have to present a 3-NDFL certificate. It fills in on its own. Moreover, at the moment you can do this using a special program on your computer. You must also attach Form 2-NDFL to your application.
The second document is prepared independently if you work for yourself. Otherwise (as usually happens), the paper is taken from the accounting department of your employer. This is a kind of confirmation that you have taxable income. Only original certificates are accepted. They are needed in a single copy. So, keep this in mind. A copy of the work record book will not be superfluous.
Application for property deduction in 2020
In addition to the 3-NDFL declaration, you must submit an application for a refund of the amount of overpaid tax to the tax office, which indicates the details of the taxpayer’s account. The application in form KND 1150058, approved by Order of the Federal Tax Service of Russia dated February 14, 2017 N ММВ-7-8 / [email protected] (as amended on November 30, 2018), can be filled out either by hand or using a PC.
Lists of documents for deductions and declaration/application forms The application can be submitted either together with the declaration or later, after the end of the desk audit, but taking into account a 3-year period: for example, for 2020, a return application can be submitted during 2020-2022 years.
Expenses and property
How to get a tax refund when buying an apartment? The documents given above are not all that is needed. Now that the relevant certificates are available, you must confirm your ownership of the property. And don't forget about expenses either.
What might be needed here? First, a certificate of ownership, a copy, preferably notarized. Secondly, the purchase and sale agreement, as well as various receipts from the seller confirming the fact of transfer and receipt of money from you. Checks and receipts (or, more precisely, copies of them) are also mandatory items. Without these documents, you will not be able to carry out your return plan.
Documentation for income tax refund
In order to return part of the money for the purchase of housing, the construction of which is still ongoing, you need to collect a package of documents for transfer to the Federal Tax Service. You will need:
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- Russian passport.
- Taxpayer identification number.
- A paper confirming the purchase of an apartment in a new building (agreement on participation in shared construction).
- An acceptance certificate or other document proving the transfer by the developer of the real estate to the shareholder.
- Payment documentation confirming the conclusion of the transaction.
- Papers that record the costs incurred by the purchaser of the property (bank statements about the transfer of money to the seller’s account from the buyer’s account, sales receipts and receipts for the purchase of building materials, etc.).
- Completed 3-NDFL declaration.
- Certificate of income 2-NDFL from the place of work for 12 months of the year in which the apartment in the new building was purchased.
- Application for payment of compensation.
When purchasing property into joint common ownership, a copy of the marriage certificate and a written agreement of the parties on the distribution of the deduction between them are submitted to the tax authority.
Other
The matter doesn't end there. Refunding a tax deduction when purchasing an apartment for pensioners and others usually requires additional paperwork. It doesn't cause much trouble, but it does happen. So, for example, it is pensioners who must confirm their status and benefits. They present copies of health certificates (especially in case of disability), as well as a pension certificate. Men must provide military ID. This is especially true for retired military personnel. But the list doesn’t end there either. What else might be useful?
For example, very often citizens are asked to present birth certificates of children, as well as marriage and divorce papers. These are not such important points, but sometimes they can interfere with the design. More precisely, push it back for a while. The most common copies are enough. Attach them just in case, so that unnecessary questions and problems do not arise.
Calculation rules
The amount of the deduction provided consists of the amount of expenses for the purchase of residential real estate.
The maximum available deduction amount is 2 million rubles. If the value of the property is lower than the amount of the benefit provided, the balance is transferred to objects purchased in the future.
In addition to the main deduction, a refund of mortgage interest is made when using lending. The amount of deduction for interest on a mortgage agreement for real estate purchased after 2014 is limited to 3 million rubles.
Calculating the benefit amount is simple.
For example, Smirnov A.N. purchased an apartment in 2020. The total cost was 1.5 million rubles. The taxpayer’s income in the specified year amounted to 100 thousand rubles. The amount of tax withheld from a person is 13 thousand rubles. Smirnov A.N. has the opportunity to apply a deduction in the amount of income and refund the full amount of tax. The balance of the amount of 1.4 million rubles is transferred to future periods.
Mortgage
No matter how strange it may sound, with a mortgage you can also get back some of the money spent. True, here the maximum cost of housing will no longer be 2, but 3 million rubles. But the percentages remain the same - 13%. What is the deadline for returning a tax deduction when purchasing an apartment with a mortgage? The same as in all other cases. You have the right to submit a request after a maximum of 3 years, the review period will be approximately 4 months. There are no differences and there never will be. Only in relation to the documents presented. To the above list you will also have to attach a mortgage agreement along with receipts for payment of interest on the transaction. Without them, there is no way to get the mortgage deduction back.
How to return tax?
You can make a refund through the tax authority after collecting a package of documents. For 2020 you need to submit originals and copies of:
- Application from the taxpayer. It documents the deduction of tax from the acquired property;
- Completed declaration. Form 3-NDFL;
- Help 2-NDFL. It records the indicated income and the tax paid.
- A copy of the identity document, TIN, marriage registration certificate;
- Papers for living space. This is: a certificate of state registration of property rights. A certified copy of the transfer and acceptance certificate is also required.
- Papers for a home loan. Namely: a copy of the loan agreement, a certificate of payment of interest for the current year. The original of this certificate is required. Interestingly, sometimes tax authorities require a check or receipt for payment of the mortgage debt. But this happens extremely rarely.
applications can be found here.
Documents are reviewed within 3 months . Much of the time is spent determining the accuracy of all submitted documents and identifying errors or incorrect data.
After this period, tax officials make a positive decision and ask for a bank account to transfer money.
Important points about tax refund on mortgage interest.
Many people already know about the tax deduction in this case, but it is based on the cost of the apartment and the interest on the mortgage. These are two factors in your tax refund. It is important to know how the payment procedure works: first of all, the tax is returned on the amount for the apartment, and only then on the interest paid for the housing loan.
Requisites
The main thing is to provide the details for replenishing your account. Banking information must be indicated in the application for tax deduction. Without them, you will simply be refused.
In principle, there is nothing difficult about the details. You indicate the account where to transfer the money directly in the application form. As soon as the full list of documents is ready, submit them to the tax service for review. And now you can just wait. After some time, you will receive a response from the authorities with a decision to grant a deduction or refusal, indicating the reason. If you are caught by the second option, correct the situation and try again. In the first case, you just have to wait for the funds to be directly transferred to your account.
