About housing law

Latest news and changes in this matter

A tax deduction in 2020 can be issued for not every plot of land.

To obtain a positive decision, the land must be intended for the construction of a residential building or house. At the same time, the presence of already built housing is not prohibited.

The maximum possible size in 2020:

If there was a purchase of a land plot and the subsequent construction of residential premises, then 2 million rubles;
In case of return of funds for mortgage lending - 3 million rubles.

In addition, you need to pay attention to the fact that for land acquired before 2014 (this also applies to mortgage payments), the amount of the tax deduction is not limited to the interest rate.

Tax deduction when buying a house with a plot

If you have purchased a residential building with a plot of land, you have the right to receive a property tax deduction . This tax benefit is described in Article 220 of the Tax Code of the Russian Federation.

Receiving a tax deduction when purchasing a house with a plot gives you the opportunity to get a refund of the income tax you previously paid. A tax deduction is provided in the amount of up to 2,000,000 rubles , and the tax refund will be equal to 13 percent of the amount of the tax deduction provided to you, but not more than 260,000 rubles .

If you purchased a residential building using credit funds, then you can additionally receive a tax deduction in the amount of interest on the loan (mortgage). Accordingly, the maximum income tax refund for such a transaction will be 260,000 rubles plus 13 percent of the interest you paid on the loan. Often the amount of return on bank interest is higher than the return on the real estate purchase amount itself.

If you purchased an unfinished residential building with a plot of land, you may receive a tax deduction after the completion of construction and registration of the residential building. In this case, you can receive a tax deduction either for a residential building or for a land plot. The choice you have to make is based on material expediency.

It is worth keeping in mind that upon completion of the construction of a purchased unfinished residential building, the following expenses are included in the tax deduction for a residential building:

funds spent on the development of design and estimate documentation;
funds spent on the purchase of construction and finishing materials;
funds spent on the purchase of a residential building, incl. unfinished;
funds spent in connection with finishing and construction work;
funds spent on connecting to communications - electricity, gas supply, water supply, sewerage.

A tax deduction for the purchase of a house with a plot is provided on the basis of your application and a completed tax return in form 3-NDFL with the attachment of documents on the ownership of the residential building and land plot and other supporting documents.

Documents for a tax deduction when purchasing a house with a plot are provided either to the tax office at your place of residence or to your employer. The Tax Service lists income tax refunds for the past three years, starting from the year the residential building was registered. Your employer can exempt you from paying income taxes for the entire year.

The right to a property tax deduction when purchasing a house with a plot can be used once in a lifetime. To complete everything yourself and without errors, carefully read the pages of our website.

Watch a video about tax deductions:

Who can receive a tax refund and under what conditions?

The refund procedure involves the use of personal income tax; therefore, only a recipient of permanent income who officially pays income tax can apply for a deduction. An unemployed person, a person receiving income informally, an individual entrepreneur and a legal entity cannot count on these funds.

A tax deduction is available to working customers when the following conditions occur:

The location of the acquired property is a personal plot or land intended for summer cottage construction.
The country house is residential and the buyer has a share in the ownership.
Upon completion of individual construction on the land plot, the owner wishes to make compensation for the construction. But this is allowed only if the premises are designed as residential.

Tax refund when purchasing land in 2020

Example of a deduction: Smirnov acquired a plot for construction in January 2020. In two and a half years he built the cottage. The ownership was registered in December 2020. Smirnov will be able to receive part of the money in 2020. Compensation will be paid for 2020 – when the property title for the building was registered. The period from 2020-2020 is not included in the calculation.

When it comes to tax deductions when selling a land plot, the Tax Code of the Russian Federation gives the right to a benefit if ownership was formalized after 2020 and the plot was owned for less than 5 years. If the PS was registered before 2020, the deduction is provided when the US was owned for less than 3 years.

Interesting to read: Chernobyl survivor in a zone with the right to resettlement, list of benefits for 2020

Rules for calculating the amount of deduction

You can only use the deduction once.

The maximum amount you can count on when buying a summer house is 2 million rubles . When returning funds, the tax rate is taken into account - 13%, that is, no more than 260,000 rubles.

A special procedure is provided for in the following situation: the taxpayer receives a loan and, therefore, pays interest to the bank. Compensation of bank interest occurs as a person pays off his loan obligations.

If a citizen applying for a deduction registered ownership of a land plot after 2014, then the legal limit will be 3 million rubles. from the amount of interest paid in accordance with the loan taken. Consequently, its size will increase to 5 million rubles.

A citizen will not be able to take advantage of this benefit if:

the development or purchase of the land plot was not made from his funds;
the land plot was acquired using maternity capital;
Only spouses, parents, children, etc. participated in the purchase and sale transaction.

Amounts of tax deduction when purchasing a land plot

The maximum tax deduction for the purchase of land is calculated at 2 million rubles. The calculation applies the rate of payments accrued on the income of individuals - 13%. Therefore, the maximum amount is 260 thousand rubles.

If the purchase of land cost more than two million rubles, exceeding the established limit is not taken into account in the calculation. When purchasing a plot of land at a lower cost, the amount refunded will be 13% of the price of the property. The calculation is made on the basis of the purchase and sale document.

The tax deduction when purchasing a land plot on credit has certain differences. In addition to the statutory refund of paid taxes, it is possible to receive an additional amount of 13% of the previously paid part of the loan. There are no restrictions on the amount of loan repayment. Reimbursement is calculated from any amount paid. It must be taken into account that this must be a targeted loan.

Procedure for obtaining and list of required documents

If the newly minted owner of the land plot has already verified that he is entitled to a benefit, then he can begin collecting documents and sequentially performing the following actions :

Filling out a tax return in form 3-NDFL.
Ordering a 2-NDFL certificate from the accounting department at the place of official employment.
Production of several certified copies of identity documents (only basic information and registration are required).
Preparation of copies of documents confirming the fact of purchase and entry into ownership. If we are talking not only about a plot of land, but also about a house located on it, then you will also need a copy of the document on the ownership of the residential building.
Copying of each document evidencing the payment: payment order, receipt, receipt, check, etc.
If the person purchasing the land is married, then a copy of the document confirming this fact is required.
If the family has a minor child (or several), then you must also provide a copy of his birth document (in case of receiving a standard deduction).
Drawing up an application to the tax office containing a request for a deduction in accordance with the amount spent on the acquisition of the land plot. Here you should also provide information about your personal data, home address and place of actual residence (if they do not match), contract telephone number and Taxpayer Identification Number (TIN). In addition, you should indicate the address where the land plot is located and list all the documents attached to the application.

A married taxpayer may, at his discretion, indicate in the application that the deduction should be distributed between the spouses. This document is not included in the list of mandatory ones.

The place of submission of all the above documents is the tax office in accordance with registration.

After consideration, the specialist can satisfy or refuse the request, as well as reschedule the consideration, for example, due to incorrect data.

A refusal may also occur if a desk audit reveals the absence of the right to a deduction.

The right to a tax deduction when purchasing a land plot

The possibility of obtaining a tax deduction when purchasing a plot of land is reflected in the tax legislation. This opportunity is provided to every citizen, from whose salary 13% is transferred to the state budget. The amount paid is a refund of previously paid taxes.

There are certain conditions for receiving a refund. It is issued if:

The plot was purchased for the purpose of building a house for living.
The land is purchased with a built residential building.
The purchase was made no earlier than January 1, 2010.

When purchasing a plot of land for the subsequent construction of a house, a property tax deduction is issued after completion of construction and registration of the house on the basis of a received document confirming ownership.

There are several restrictions in this law. For plots that were acquired for the construction of a summer house, a garden, a vegetable garden, reimbursement of taxes paid is not provided for by law. A request for compensation will not be considered if the land was not originally purchased for a residential building, and then it was built. The right to compensation is not provided if a plot of land with a building with more than 3 floors or a house in which 2 or more families are accommodated is purchased. There is no need to count on payment to owners who have registered a joint acquisition of land and a common right to own it.

The right to receive compensation is granted to a citizen once. Moreover, this benefit is provided for one object. A tax deduction for the purchase of a house with a plot will be provided for the purchase of a building or land. In this case, the payment is made even if the owner does not own the entire house, but a certain share in the residential building.