Tax deduction for an apartment with a mortgage: documents, how to get it

The housing issue in Russia is always problematic for many families. But despite all the difficulties, the state provides support and introduces benefits in this direction. One such instrument is a mortgage.

Any working Russian whose salary is paid officially and is subject to a state tax of 13% has the opportunity to receive a tax deduction for an apartment with a mortgage.

This type of collection, or personal income tax, that is, payment on income, is formed at the end of the tax period - a simple calendar year.

What is a tax deduction for an apartment

First, we will tell you what a property return is. Receiving a tax deduction for an apartment with a mortgage is an opportunity to return part of the money you earn personally, which is transferred to the state by the employer.

This deduction can be either property or reimbursement for treatment or education, but each has its own limits and features. Almost all categories of payers can count on such a return: those who raised borrowed funds and those who paid for the cost of services or the purchase of housing in cash.

It is worth noting that you can submit documents for a tax deduction for purchasing an apartment with a mortgage at any time of the year.

When is it possible to issue a property return:

• When purchasing secondary housing - after registering property rights upon completion of the purchase and sale transaction and recording data in Rosreestr.
• When purchasing housing under construction - after receiving the transfer and acceptance certificate.

In the case of purchasing a plot of land for the construction of your own house (or ILI), the benefit can be issued only after receiving a certificate of ownership of a ready-made residential building, which will also be registered by a government agency.

The main and most important specificity of the property deduction is that it is calculated only on income that is subject to personal income tax exclusively for the year of purchase of land or real estate (the exception in this case is pensioners, they can count on this benefit for the three previous years). But if the property return on the mortgage has not been paid in full in the current tax period, then the balance can be transferred to the following years, when a sufficient amount of personal income tax has been accumulated.

Cases when it is impossible to dispose of an overpayment of personal income tax:

1. In the case of obtaining a mortgage or direct purchase of housing, maternity capital was used, allocated budget funds, or the purchase was carried out at the expense of the employer.
2. In the event that a purchase and sale agreement is concluded with a relative or between interdependent persons, that is, the other party to the transaction is a brother or sister, spouse, parents or guardian (or, alternatively, a ward).

The main condition for processing a tax refund is the proper execution of documents in compliance with legislative norms and their submission to the fiscal authorities.

A tax deduction for an apartment on a mortgage can be returned by any working citizen who is officially employed.

Therefore, when applying for a mortgage, you need to know exactly what scheme your employer uses to pay its staff, since in the case of a gray salary, you will not be charged personal income tax and, accordingly, a property return.

What you need to know about tax deductions when buying an apartment with a mortgage

It is very important to know how to get a tax deduction for an apartment with a mortgage and what benefits you can claim when purchasing real estate. Not all borrowers are aware that it is possible to receive a tax refund after purchasing a home.

This may be due to the fact that this benefit is not widely promoted among mortgage banks. In most cases, this is due to the lack of after-sales customer service in real estate agencies.

Since filing a tax refund is a rather complicated procedure, and not everyone is ready to do it.

It is important to note that, in addition to the property return from overpaid personal income tax on the cost of housing or land, it is possible to accrue it on the interest paid on loan funds, which significantly increases the amount of return for the mortgage and has a positive effect on the loan burden. On January 1, 2014, amendments to Article 220 of the Tax Code of the Russian Federation were legalized, which introduce a limitation on the possibility of receiving a refund on interest paid to 3 million rubles; this requirement does not apply to those who registered housing before 2014.

It is also worth noting that a tax deduction for an apartment purchased with a mortgage or with cash can only be obtained for the last three years. This period can occur only after registration of housing or land as property or receipt of an acceptance certificate.

The amount of tax deduction for an apartment with a mortgage

The tax refund is limited to 650 thousand rubles, that is, 13% of 5 million rubles. This is the maximum amount for which a property refund can be issued. This amount is made up of two components:

1. Two million rubles is the maximum possible amount for the purchase of an apartment with which you can apply for a deduction.
2. Three million rubles is the maximum possible amount for paying interest on a loan, from which you can issue a deduction.

A tax of 13% is a monthly legal levy on personal income, or personal income tax, established by the state, which is calculated by the employer and transferred by him to the destination. The tax refund is made from this.

For example, a citizen purchased an apartment with a mortgage at a bank rate of 10% and paid a down payment of 20%, the cost of living space is slightly more than five million rubles, the loan repayment period is 30 years.

The total amount under the terms of the mortgage loan agreement will be 8.5 million rubles. But according to the rules of the law, the refund can only be calculated from 5 million rubles, which in this case will be 650 thousand rubles.

If the cost of the apartment, including mortgage interest, is less than, say, 2.5 million, then the deduction will be 325 thousand rubles.

List of documents for tax deduction for an apartment with a mortgage

Let's assume that you have taken out a mortgage on an apartment, but you don't know how to apply for a tax deduction. To do this, you need to collect and submit all the necessary documents to the fiscal authorities.

This procedure is complex and requires perseverance and scrupulousness, since even the slightest mistakes are not allowed.

For example, the most difficult to fill out is the 3-NDFL declaration for a tax deduction for an apartment with a mortgage.

Here is the general list:

1. Tax return 3-NDFL, its form is located on the Federal Tax Service website.
2. An application for a refund of the tax deduction indicating the bank details for its transfer to the applicant.
3. Identity documents. In this case, certified copies are transferred.
4. Certificate 2-NDFL from the employer for those periods for which the property return is planned.
5. Agreement for the sale and purchase of a real estate property (house, apartment or land).
6. A document that confirms the fact of registration of property rights. In the case of purchasing a secondary home, this is an extract from the Unified State Register of Real Estate; for a new building, this is an act of transferring ownership of the apartment.
7. Extracts or other documents that confirm payment, as well as a receipt from the seller (notarized copy).

Additionally you may need:

1. A mortgage agreement in case of borrowing funds to purchase a home.
2. Mortgage repayment and interest payment schedule. It is drawn up based on the terms of the loan or mortgage agreement.
3. A certificate from the bank regarding the loan amounts actually paid, indicating the interest.
4. Bank statement confirming transfers, or preserved checks, receipts.

If the living space belongs to both spouses:

1. Certificate of agreement on the distribution of deductions. This certificate was included in the general list after January 1, 2014 and is required in case of purchasing an apartment worth more than 4 million rubles. If the price is less, then the refund is automatically recalculated to the amount of 2 million rubles.

   The essence of the document is that the amount can be distributed between spouses based on their income. This applies if one of the spouses’ salary significantly exceeds the income of the second and his personal income tax base is correspondingly larger; in this case, he can receive a tax deduction for the mortgage faster without recalculating the amounts for subsequent years.

If there is a child in the property share:

1. Child's birth certificate.

In order to manage the overpayment of personal income tax, it is necessary to prepare all documents in advance and check them for correct completion, since the state authorized body accepts only the full package of the above documents. The absence of any paper or the presence of errors means that the application will not be accepted.

Step-by-step instructions for registering and receiving a tax deduction for an apartment with a mortgage in 2019

Have you bought an apartment with a mortgage and are returning the tax deduction? We will tell you what the procedure is for contacting the fiscal authority or through an employer.

Through the federal tax service you will receive funds into your account in full, but through your employer the mechanism is slightly different: monthly personal income tax will not be withheld from the basic salary until the entire amount due for return has been selected.

When contacting the Federal Tax Service, the procedure will be as follows:

1 step. Collection of necessary documents.

We collect all the papers listed above. Carefully study the list of documents, because even if one piece of paper is missing, the application will not be accepted, and you will waste time.

Step 2. Transfer of a set of documents to the tax authorities.

Papers are delivered both in person and via Russian Post. The first option is preferable, since the inspector can check on the spot the documents provided, their list and the correctness of filling out the data. When sending by mail, you must issue a notification letter and attach an inventory to the documents.

Step 3. Processing of documents by tax authorities.

By law, documents are checked for no more than three months. This is the so-called desk check. At the end of the period, you will receive a notification of the results. If the documents have been verified, they will calculate the tax deduction for your mortgaged apartment and make a transfer to the specified details within a month. In case of refusal, you will need to clarify the reason and resubmit the documents.

If you decide to issue a payment refund through your employer, then you need to go through steps 1 and 2 of our instructions, and when you receive a notice from the tax office with a positive decision, you need to transfer it to the accounting department of the company where you work and draw up a deduction application Personal income tax. In this case, the employer will not withhold personal income tax from wages until the refund amount is completely exhausted.

Features of obtaining a tax deduction for an apartment on a military mortgage

“Military Mortgage” is a state program to support military personnel, thanks to which it is possible to purchase an apartment at the expense of the state. Despite the significant government subsidy, a property deduction is also possible. But with some restrictions.

For example, if a serviceman buys a home in 2019 under the Military Mortgage program for 6.5 million rubles, then the state pays three million of the total amount, and the buyer contributes 3.5 million of his own funds. His property deduction will amount to no more than 260 thousand rubles, that is, this is the same 13% of personal income tax from 2 million rubles established by law.

Is it possible to get a tax deduction for mortgage interest on a second apartment?

The main innovation of 2014 in the legislation is that the property deduction is determined by the buyer, and not by the object of purchase. That is, it can be taken into account from the purchase of either one apartment or several.

This is very convenient if you decide to purchase an apartment and a plot of land with a house at the same time.

It is important to consider that a deduction from overpayment of personal income tax can be issued either only by the owner or by the spouses together, regardless of who has the mortgage or property.

For two or more apartments, a deduction is also possible, but it is also limited to 2 million by law.

For example, if you purchased two apartments for 1.5 million rubles each, then your deduction will be no more than 260 thousand rubles - from the amount of 2 million rubles allowed by law.

Previously, before the introduction of new provisions in 2014, in this case the deduction would have been provided for only one object in the amount of 1.5 million rubles.

The new rules are especially beneficial when purchasing several inexpensive apartments. Let’s say a citizen can purchase three objects, for example, at a price of 0.5 million, 0.7 million and 0.85 million rubles. That is, having spent 2.05 million rubles in a year, he has the right to a tax deduction on the amount of 2 million rubles.

There is no need to neglect this right, but, on the contrary, make the most of it, as this allows you to return the funds spent on purchasing an apartment. The most important thing is that when purchasing an apartment with a mortgage, documents for tax deductions are drawn up on the basis of forms approved by law and require care.

Source: https://www.papabankir.ru/ipoteka/nalogovyj-vychet-za-kvartiru-po-ipoteke/

Tax deduction after purchasing an apartment with a mortgage: how to get it in 2019

In total, you can return up to 650,000 rubles for the apartment and mortgage interest over several years. 

If you work officially and receive a “white” salary, then you pay income tax - 13%. The accounting department transfers it, and you receive your salary without personal income tax - personal income tax. Every year you give the state an impressive amount.  

For example, receiving an official salary of 60,000 rubles, every month you pay taxes in the amount of 7,800 rubles. This is 93,600 rubles per year. After purchasing an apartment, this amount can and should be returned!  

In what cases can you get a tax deduction for real estate?

• Construction or purchase of housing: apartment, private house, room or share 

• Purchasing a plot of land with a residential building or for building a house

• Interest expenses on a mortgage loan 

• Costs for finishing and renovation of housing - only in the case of a new building (if purchased from the developer without finishing) 

Deduction is NOT provided 

When purchasing real estate from related parties 

A tax deduction cannot be issued if you bought an apartment or house from relatives: spouse, children, parents, brothers or sisters, as well as from an employer. Because all these people are considered “related persons,” that is, interested.

• If a person has already exhausted his right to property deduction
• Yes, the property deduction can be received only once if you purchased housing before 2014.
• But on January 1, 2014, changes were made to the Tax Code: if the tax deduction when purchasing real estate is not received in the maximum amount (from an amount less than 2 million rubles), then the balance can be received when purchasing another property. 
• The limit for one person is 260,000 rubles for real estate and 390,000 rubles for interest on a mortgage loan. 
• Unlike the home purchase expense deduction, the mortgage interest deduction can only be taken once in a lifetime for one property. 

Read also: Payments to first-graders: from large families, low-income

How much can you get?

The amount of tax you can get back is determined by two main factors: your expenses when buying a home and the income tax you paid.

The maximum possible amount for calculating a tax deduction is 2 million rubles, and for mortgage interest – 3 million rubles

In total, you can return up to 13% of the cost of housing or land, but the maximum amount for deduction should not exceed 2 million rubles.

Thus, up to 260,000 rubles can be returned from your taxes when buying an apartment, as well as up to 390,000 rubles for mortgage interest paid. That is, you can buy a home for either 5 or 10 million, but the state will pay 13% only for 2 million rubles.  

For housing purchased before 2008, the maximum deduction amount is 1 million rubles.

Every year you can receive no more than what you transferred to the income tax budget (13% of the official salary). At the same time, you can return the tax over several years until you return the entire amount.

If the property was purchased with a mortgage

1. In case of purchasing housing with a mortgage before January 1, 2014, income tax on expenses for paying mortgage interest is refunded in full, without restrictions.

2. If the housing was purchased with mortgage funds after January 1, 2014, then the interest deduction is limited to 3 million rubles.
3. You can return a maximum of 3 million rubles x 13% = 390 thousand rubles from mortgage interest.

If 10,000 rubles were paid for interest on a loan in 2018, you can reimburse 1,300 rubles. And so no more than 390 thousand rubles for the entire loan period.  

The law does not impose a limit on the number of years of reimbursement. If the mortgage agreement is signed for 30 years, then you can draw up an annual deduction as interest is paid.

In total, you can return up to 650,000 rubles for the apartment and mortgage interest over several years. You can use the calculator how much you can receive.

What if the apartment was purchased during marriage?

• The tax deduction limit for one person is 260,000 rubles, the deduction for credit interest is 390,000 rubles.
• Moreover, if an apartment was purchased after January 1, 2014 by married spouses, each spouse can receive a property deduction in the amount of these limits. 
• Spouses have equal rights to repayment, even if the spouse's name is not listed on the purchase agreement.

How long does it take to receive a deduction?

You can receive a deduction only for the calendar year in which the right to it arose and for subsequent years. It is not possible to refund taxes for years preceding the year in which the right to deduction arose.

The only exception to this rule is when a retiree carries over a deduction. Pensioners have the right to transfer the deduction to three years preceding the year the right to it arose.

If you bought an apartment in the past and did not apply for a deduction immediately, then you can do it now (there are no restrictions on the timing of receiving a deduction). You can claim a deduction either 10 years or 20 years after purchasing a home.

The only thing is that you can return income tax for no more than the last three years. For example, if you bought an apartment in 2016, and decided to apply for a deduction in 2019, then you will be able to get your tax back for 2018, 2017 and 2016.  

When can you submit documents for deduction?

You can return the money under the property deduction starting from the year in which you have in your hands:

• payment documents confirming expenses incurred for the purchase of an apartment, house or plot

• documents confirming the ownership of housing: an extract from the Unified State Register of Real Estate (certificate of registration of ownership) when purchasing an apartment under a sale and purchase agreement or an acceptance certificate when purchasing housing under an equity participation agreement

There is an opinion that you can submit a declaration to receive a deduction only until April 30. This is wrong. You can submit a declaration at any time and day of the year.  

Your only limitation is that you can only file a return and return tax for the previous 3 years. For example, in 2019 it is no longer possible to file a return and receive a deduction for 2015.

How long does it take to get a tax deduction?

The tax refund declaration is always submitted for the entire calendar year (regardless of the month in which the property was purchased and in which months the taxes were paid).

However, you can submit a declaration for a calendar year only at the end of it. You cannot submit a tax refund return for a calendar year before its end.

It is worth noting that you can take advantage of the opportunity to receive a deduction through your employer without waiting for the end of the calendar year. 

How to get a deduction

The process of obtaining a deduction consists of: collecting and submitting documents to the tax office , checking documents by the tax office and transferring money. Each specific situation has its own nuances, so we recommend that you clarify the detailed requirements for filing a deduction with the tax office.

What documents are needed

• Tax refund application 

• Documents confirming your expenses

• Documents confirming income tax paid (certificate 2-NDFL) 

The process of obtaining a deduction can be simplified by using a tax refund service. 

The service is convenient if you don’t want to understand all the intricacies yourself and fill out documents. This service - filling out a declaration and preparing a package of documents - will cost you 1,499 rubles.  

Submit an online application and a tax consultant will call you and tell you in detail what documents are required.

To send them to a consultant, you can scan them or simply take a photo with your smartphone. The consultant will fill out the declaration himself, and you will only need to upload it to the Federal Tax Service website, send it there by mail or enter it in person. The money will be returned to your card, and you don’t have to be a Sberbank client to do this.    

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Source: https://blog.DomClick.ru/post/nalogovyi-vychet-posle-pokupki-kvartiry-v-ipoteku-kak-poluchit-v-2019-godu

Documents for tax deductions when purchasing an apartment with a mortgage

To return part of the funds spent on the purchase of an apartment under a mortgage loan agreement, the borrower can contact the Tax Service. The amount of the refund will depend on the cost of housing and the amount of income. In order for the money to be returned, you must prepare and submit documents to deduct the mortgage for the apartment.

Features of filing a tax deduction in 2019

Buying or building your own home is an expensive procedure. The state provides an opportunity for a number of buyers to return part of the funds spent on the purchase. This can be done by obtaining a tax deduction.

It is not provided to all citizens. Any tax deductions are a refund of part of the income tax paid. This means that only persons who periodically pay personal income tax can apply for them.

As a rule, the recipients of tax deductions for the purchase of an apartment are employees, for whom the employer pays income tax. But not necessarily. If a citizen pays personal income tax on other income, for example from rental property, he also has the right to a deduction.

It will also be provided to pensioners if they paid income taxes for some period within three years before purchasing real estate.

The amount of tax deduction is determined by the provisions of Art. 220 Tax Code of the Russian Federation:

• when buying an apartment, buying (constructing) a house – 2 million rubles;
• when purchasing a land plot for individual housing construction – 2 million rubles;
• when buying a house or apartment with a mortgage and paying interest - 3 million rubles.

Naturally, these amounts are not returned in full, but only 13% of them, provided that such an amount was paid as personal income tax. If the value of the purchased property is less, the deduction will be calculated from the purchase price.

For example, a citizen purchases an apartment for 1.5 million rubles. In this case, the amount of property deduction will be 195 thousand rubles. (1,500,000 x 0.13).

When the purchase price is greater, the deduction is still provided only within the established limits.

Tax refund can be issued in two ways:

1. Submit an application for a deduction to your employer.
2. Apply to the nearest Federal Tax Service office.

The applicant decides which option to choose. Naturally, only an officially employed employee can act through an employer.

If the applicant applies to the Federal Tax Service, he should wait until the tax period in which the apartment was purchased ends. This can then be done at any time and after several years. But in this case, it should be taken into account that a tax deduction will be provided on the amount paid as personal income tax for the three years preceding the filing of the application.

The convenience of acting through the Federal Tax Service is that the money is returned in a lump sum. True, for one tax period. If the applicant paid less tax for the previous year, the balance is carried forward. The applicant can receive it the following year. But for this you will have to submit a new application.

When a citizen acts through an employer, you can send an application to the accounting department immediately after the right to a deduction arises upon purchase. The employer, in fact, does not return the tax already paid. He stops deducting it from the applicant’s earnings. And so on until the entire required amount is collected.

Required documents

To receive a tax deduction, no matter where the buyer applies for it, you will need to collect and submit a certain package of documents. True, the list varies somewhat depending on the nature of the transaction as a result of which the citizen acquired the property. It also depends on the recipient's option.

Common list

What documents may be required to apply for a deduction:

1. Buyer's ID. As a rule, this is a civil passport.
2. Statement of the established form. The form can be downloaded from the official website of the Federal Tax Service or requested during a personal visit.
3. Documents with which he confirms his right to the acquired property (DCT, DDU). The right to a deduction when purchasing an apartment arises immediately after signing these agreements.
4. Certificate of ownership. You need to register it with Rosreestr.
5. Tax return 3-NDFL for the period when the property was purchased. If the applicant applies for a deduction several years after the purchase and he filed a tax return earlier, a new one is no longer required. An exception is cases when corrective information should be included in the text of the declaration.
6. Certificate of income for the period for which the deduction is issued. It is compiled according to form 2-NDFL. If the applicant is an employee, he should simply contact the accounting department at his place of work to obtain it. For everyone else, you can issue such a certificate directly at the Federal Tax Service office.
7. Payment documents with which a citizen can confirm that it was he who paid for the purchase of real estate.

If the applicant purchased an apartment with a mortgage, he will be additionally asked to:

1. Mortgage loan agreement.
2. A bank statement indicating the amount paid and the amount of remaining debt.
3. Payment schedule.

If the deduction is made for mortgage interest, you can receive it upon payment, i.e. annually throughout the loan period. In this case, you will need to submit a new statement each time.

Additionally, depending on the situation, the Tax Inspectorate or the employer may request a number of other documents:

1. Marriage certificate, if the applicant is a member of one.
2. An extract from the Pension Fund about the provision of capital funds for the purchase of housing. It must be remembered that these funds are not taken into account when calculating the tax deduction, like any other targeted payment received from the state, because the money is not the applicant’s personal savings.

If the buyer intends to receive a mortgage deduction from the employer, he must first contact the Tax Office for a certificate confirming the existence of the right to it. Federal Tax Service employees provide such a certificate within one month from the date of filing an application for its receipt.

The list of documents should be checked with the inspector in advance.

How to fill out a tax return

If a citizen does not have experience in filling out serious financial documents and document management, it is better to entrust filling out a tax return to professionals. Nowadays, many accounting firms and individual accountants provide such services. Cost varies. The average is 500 rubles.

If the buyer intends to fill out the declaration himself, he should download the form. You can find it on the official website of the Federal Tax Service. Then you can simply fill it out by hand with a ballpoint pen (necessarily blue or black).

If it is more convenient to fill out the declaration electronically, then this can be done, again, on the Federal Tax Service website in your personal account.

For Internet users, there is another convenient program with which you can fill out a document. You just need to install it on your computer or laptop through the Tax Office website. The program checks the correctness of the entered information.

If the apartment was purchased during marriage

If a married person is purchasing an apartment, the spouses can divide the amount of the property deduction between themselves. But this is only if the property is acquired as a common joint property.

In this case, when applying for a deduction, the husband and wife must submit a marriage certificate and an application for division of the deduction amount. They can divide the refunded tax among themselves in any shares. This is convenient if spouses do not want to wait for the required amount to be collected, which one of them deducts as personal income tax.

If a mortgage deduction is issued for an apartment purchased in shared ownership, each spouse can issue their own deduction, the amount of which will be consistent with the share in the property. If an apartment costs 2 million rubles, and everyone owns ½, then the deduction for the parties will be 1 million rubles. for each. And if the apartment costs 4 million rubles, everyone’s deduction will be calculated from 2 million rubles.

If the owner is a minor child

Parents can purchase real estate for their child. In this case, they also have the right to receive a fiscal deduction. They will only need to provide evidence of the degree of relationship. To do this, you need to attach to the general package of documents the child’s birth certificate, in which the applicant is included as a parent.

You also need to prove that it was the parent who paid for the purchase and the loan interest. To do this, you will need payment documents in which he is entered as a payer.

Read also: Cancellation of the adoption of a child: grounds, application, judicial practice

Documents for obtaining a mortgage interest deduction

Borrowers who have taken out a mortgage loan can also obtain a tax deduction on interest. Its size is larger than for a purchase using a simple policy. The maximum value is 3 million rubles.

You can receive an interest deduction every year for the entire period that the loan is repaid. If interest was paid in 2018, a deduction for it can be issued already in 2019.

It is allowed to accumulate larger amounts and apply for interest deductions for several years at once. For example, the borrower paid the loan in the period from 2017 to 2019, and will issue a deduction in 2020 for three years at once.

Each time you apply for a tax refund, you will need to write an application again and submit a package of documents. You will need to request a bank statement, which indicates the size of the debt balance and the amount already paid. A payment schedule will also be required if it is not included in the statement. You need a document that indicates what date and specific amount was paid.

Deadlines for submitting documents

If the borrower applies for a deduction through an employer, he can submit an application for it immediately after signing the DCT or DDU. When a citizen acts through the Federal Tax Service, he should wait until the end of the tax period during which the apartment was purchased.

If the borrower needs to file a tax return for the previous year, it is more convenient to combine these two activities. Just remember that the deadline for filing declarations is May 1. Those.

If you bought real estate in 2019, all documents must be submitted to the Federal Tax Service by May 1, 2020.

The law does not impose further time restrictions. But you should hurry, because... for example, it is not always possible for pensioners to apply for a deduction.

To receive a deduction when purchasing residential real estate under a mortgage loan agreement, the borrower must submit supporting documents to the tax authorities. In the case of a mortgage, he is entitled to two deductions, but then additional documents from the bank will be required.

Source: https://www.ndfl.ru/dokumenty-dlya-nalogovogo-vycheta-za-kvartiru-po-ipoteke/

Documents for tax deduction on mortgage

The application for deduction is made using a single form. It has not changed in 2018.

The property tax deduction includes reimbursement of part of the costs of purchasing real estate and paying part of the interest. Reimbursement of interest is made after payment of funds to reimburse the costs of purchasing the property. The list of documents for these operations is slightly different.

List for reimbursement of expenses for the purchase of real estate:

1. Passport.
2. To reimburse the tax deduction, the borrower submits a declaration to the tax office according to f. 3-NDFL. The document form can be downloaded via the Internet. The borrower enters his full name, passport details, calculates the amount of tax to be refunded, fills in information about income and taxes paid, enters information for calculating deductions: the amount of expenses, type of property, information about the object, etc. In order not to file a declaration, the borrower can apply for compensation to his employer. You only need to collect the necessary documents and write an application.
3. The applicant must confirm the amount of income with a certificate. 2 personal income tax for the period in which the deduction is issued. It is formalized through the accounting department of the employing enterprise.
4. A document confirming the completion of a transaction. It can be a purchase and sale agreement, equity participation, or assignment.
5. An extract from the Unified State Register of Real Estate (USRN), confirming the acquisition of property. If a land plot was purchased, an extract from the Register is also provided for it. The exception is the registration of deductions when participating in shared construction, when ownership of the object is not registered. In this case, a Certificate of Acceptance and Transfer of the Object is required.
6. Documents confirming the fact of settlements with the seller. If the funds were transferred to the seller’s account, as is done with a mortgage, then the fact of the transaction will be an account statement certified by the bank. When the property has several owners, but payment for housing is transferred from the account of the title borrower, co-borrowers, in order to be able to issue a deduction, must write a power of attorney to the payer to transfer their part of the contribution. If the payment was made in cash, then the seller’s receipt of the money will serve as proof of the transaction.
7. When the owner of a part of the property is a child under 18 years of age, the deduction from his share can be transferred to one (or both) parents. In this case, you will need to provide a birth certificate for the children and an application for distribution of part of the deduction. When the child starts working, he will be able to additionally apply for a deduction for his share of the purchased housing.
8. When acquiring property during marriage, you will need a marriage certificate and an agreement between the spouses on the division of shares to distribute the property deduction.

If the borrower has received a payment to reimburse expenses for the purchase of real estate, he can draw up documents for reimbursement of interest. To do this, you will need to collect, in addition to the main ones, the following package of documents:

1. A document confirming the amount of interest actually paid . It is formed at the creditor bank. Usually banks provide a certificate within a day free of charge. Additionally, the borrower provides actual confirmation of monthly interest payments: receipts, checks, statements. When applying for a deduction for the first time, you must confirm payment of the down payment.
2. Original loan agreement with repayment schedule.

Document requirements

All documents are submitted in original with copies attached. After checking the documents, the originals will be returned to the applicant, except for the declaration and certificates 2-NDFL. The application form is standard. In it, the applicant must indicate the year of compensation, its amount, the name of the employers, and a list of attached documents.

Additionally, the application indicates the details for transferring funds. This could be the borrower's bank account, card account, loan account (for sending money to pay off debt).

Procedure for submitting documents

• Documents are submitted annually; if the property has several owners, then each one collects a separate package of documents and submits it independently.
• Documents are submitted from January for previous tax periods, for a maximum of 3 years.
• Example of filling out personal income tax declaration 3 on mortgage interest:

Source: https://www.Sravni.ru/ipoteka/info/dokumenty-dlja-nalogovogo-vycheta-po-ipoteke/

Documents for a tax deduction for a mortgage: list of documents

Welcome! With the help of a tax deduction, every citizen of Russia can partially compensate for the costs of purchasing their own home. For more information about what a tax deduction is, who can count on receiving it, and what documents you will need for a tax deduction on a mortgage, read on.

Two types of mortgage deductions

When talking about a tax deduction, it is important to understand that we are talking about reducing the tax base (all total income of the taxpayer on which income tax is levied) or receiving a refund of overpaid personal income tax from the budget. Russian citizens who are officially employed under a civil law or employment contract and who monthly contribute 13% to the state budget have the right to a partial refund of paid income tax.

If you purchase an apartment or house using borrowed funds, the borrower can receive 2 tax deductions:

• basic;
• interest deduction.

The main tax deduction gives the mortgage borrower the right not to pay personal income tax on the amount established by law.

In particular, Article 220 of the Tax Code of the Russian Federation establishes that the maximum amount of tax deduction when purchasing a house, apartment or land plot is 2 million rubles (excluding the amount of repaid interest on the loan). That is, you can return 13% of this amount - no more than 260 thousand rubles.

The main deduction has the following features:

• You can obtain the right to reimbursement of costs for the purchase of residential real estate only after registration of ownership or receipt of a housing acceptance certificate;
• the loan must have a specific purpose, which is confirmed by the conclusion of a mortgage agreement;
• The deduction may include both borrowed and the borrower’s own funds spent on the purchase of housing.

Since the beginning of 2014, Russian citizens have had the opportunity to receive a deduction for mortgage interest paid in accordance with the payment schedule. The interest deduction also has some nuances. Among them:

• the maximum deduction amount is 3 million rubles, which allows you to return up to 390 thousand rubles;
• You can only return the mortgage interest actually paid for previous years;

Source: https://ipotekaved.ru/vichet/dokumenty-dlya-nalogovogo-vycheta-po-ipoteke.html

Documents for obtaining a property deduction for an apartment purchased with a mortgage + instructions on where and how to get them

Article updated: January 17, 2020

Hello. After purchasing an apartment with a mortgage, you can count on 2 deductions - a tax deduction for the purchase costs and a tax deduction for the costs of paying interest on the mortgage.

I call them simpler - the purchase deduction and the mortgage deduction. I have listed 2 lists of documents, here for the purchase deduction, here for the mortgage deduction. In the description of each document, I described in detail how and where to obtain it.

You need to submit documents to the district tax office ONLY at your residence/registration address (clause 3 of Article 228, clause 2 of Article 229, clause 1 of Article 83 and Article 11 of the Tax Code of the Russian Federation). The address of the purchased apartment, place of work or actual residence does not matter.

→We will help you receive deductions. VerniteNalog.ru specialists will figure out what deductions you are entitled to, calculate the amount of deductions, prepare documents and accompany the entire process until you receive the moneyVerniteNalog.ru

Documents for deduction for purchase

The purchase deduction is paid every year. The amount of the deduction portion is equal to the annual amount of personal income tax paid on the owner’s salaries/income. Therefore, documents for personal income tax refund must be submitted every year. Each owner who has the right to a deduction must submit his own package of documents.

• Tax return 3-NFDL (original); Tax return form 3-NDFL from the official website of the Tax Service This is the most important document, because on the basis of the declaration the deduction amount is calculated. I have plans to write instructions on how to fill out a declaration. As soon as it is ready, I will insert a link to it here. If you do not want to fill out the declaration yourself, you can leave this to the specialists at the Kwork freelance exchange. Service price from 500 rub. Using the filter, select a contractor (for example, with a reputation of 5 points or more), pay for the service and he will get to work. If your order is executed poorly, the exchange guarantees a refund. How to submit documents to the tax office and how long to wait for a camera audit. A small digression: if you need free legal advice, you can write online to a lawyer at the bottom right at any time, you can order a call at the bottom left, or call yourself: 8 (499) 938-45-06 (Moscow and region); 8 (812) 425-64-92 (St. Petersburg and region); 8 (800) 350-29-86 (all regions of the Russian Federation).
• Certificate of income in form 2-NDFL for a year or several years (original); You need to get it from your employer's accounting department. They know exactly what kind of certificate this is. It indicates the amount that the employer withheld as personal income tax from the employee’s salaries for the year (or several years). Do not confuse it with the 3-NDFL declaration, these are completely different documents.
• Application for a deduction (original); Of. name – application for a refund of overpaid tax. In the application, you must indicate the details of a bank account (not a bank card), into which the tax office will transfer the money as a deduction. Usually citizens indicate their salary or mortgage account, but you can indicate any account in any other Russian bank. The main thing is that it is in rubles and registered in the full name of the recipient of the deduction. The deduction money can be spent absolutely at your own discretion. Download the application form on the official website of the Tax Service
• Passport (original + copies); Copies of the main passport page and registration page will be required. By law, copies are not required to be submitted, but all tax inspectors require them. It's easier to make copies than to argue with them.
• Certificate of registration of ownership or extract from the Unified State Register of Real Estate ; If there is a certificate of registration of rights, then an original and a copy are submitted. Since July 2016, certificates have not been issued, but instead an extract from the Unified State Register of Real Estate on the main characteristics of the property (formerly an extract from the Unified State Register) is issued. The property in our case is a purchased apartment. Therefore, if you do not have the certificate on hand, then you need to submit a paper extract from the Unified State Register of Real Estate with a stamp. How and where to order an extract from the Unified State Register for an apartment. When purchasing an apartment in a new building under a DDU or assignment, it is not necessary to submit a certificate or an extract from the Unified State Register of Real Estate. Those. You can already receive a deduction for an apartment in a new building, even if it has not yet been registered as property. But only after signing the transfer and acceptance certificate. More on this below.
• Agreement of purchase and sale (if the apartment was purchased on the secondary market) or agreement of equity participation or assignment (when purchasing an apartment in a building under construction/new building); Originals and copies of each page are submitted. If the purchase and sale agreement is lost, the owner can obtain it from the MFC or from a notary (if it was in notarized form).

→We will help you receive deductions. VerniteNalog.ru specialists will figure out what deductions you are entitled to, calculate the amount of deductions, prepare documents and accompany the entire process until you receive the moneyVerniteNalog.ru

• The act of acceptance and transfer of a shared construction project , if the apartment was purchased in a house under construction/new building (original and copies of each page);
• Documents that confirm the transfer of money to the seller , i.e. payment for the purchase of an apartment; If the money was transferred to the seller in cash or through a safe deposit box, then there must be a receipt from the seller (copy and original). Sometimes it happens that after transferring money, buyers do not require a receipt from sellers, or buyers simply lost it. Unfortunately, without this receipt, the tax office will refuse to issue a deduction. Therefore, buyers will have to find sellers so that they write a receipt by hand and backdated (to the date on which the amount was transferred). There is no other way out. When making a non-cash transfer of money from the buyer's account to the seller's account (also through a letter of credit), you will need not a receipt, but a bank statement (original). It often happens that payment to the seller was made from the bank account of only one of the buyers (owners), although all buyers incurred the costs of the purchase. Therefore, in order for other owners to receive a deduction, they need to write in their own hand, in a simple and free form, a power of attorney to transfer their part of the money to the buyer from whose bank account the money was transferred to the seller.
• If the apartment was purchased during marriage, then you will additionally need:
  • Marriage certificate (original and copy);
  • Application for distribution of property deduction between spouses (original); According to paragraphs. 3 p. 2 art. 220 of the Tax Code of the Russian Federation, if spouses bought an apartment and registered it as joint ownership, or registered it only for one of the spouses, then they can distribute the deduction for the purchase and the deduction for the mortgage - more details. For example, one spouse has 100%, the other 0%. Or 90% by 10%, 80% by 20%, etc. But there are nuances - if the apartment was purchased before January 2014, then the “mortgage” deduction is distributed between the spouses in the same proportions as the deduction for the purchase. If after January 2014, then the deduction for the purchase can be distributed in one proportion, and the “mortgage” in another. By default, it is always divided 50 to 50. Also with the application for distribution - if the apartment was purchased before January 2014, then it must be submitted, even if the spouses divide the deduction by default 50 to 50. If after January 2014, then the application is required , only when the apartment was purchased for more than 4 million rubles. If the purchase price is below 4 million rubles, then the application is not necessary. Download the application for distribution of deductions between spouses
• According to paragraph 6 of Art. 220 NK, if the owners have a minor child, then the parents can distribute his part of the deduction for the purchase in their favor in any proportion for two or one of them - more details. The mortgage deduction for children cannot be distributed. Documents for this:
  • Birth certificate if the child is under 14 years old, or passport if between 14 and 18 years old. Originals and copies are needed;
  • Application for distribution of part of the deduction (original). In the application for the distribution of property deductions, you must fill out the proportion - 0% for the child, and his share of the deduction in any proportion for both parents or one of them at will (50 to 50, 30 to 70, 100 to 0). The child does not lose the right to receive a deduction in the future.

Read also: How to get a certificate for a large family: where to get it through government services and what documents are needed

→We will help you receive deductions. VerniteNalog.ru specialists will figure out what deductions you are entitled to, calculate the amount of deductions, prepare documents and accompany the entire process until you receive the moneyVerniteNalog.ru

Documents for mortgage deduction

The tax office first returns the money for the deduction for the purchase and only then can you apply for a deduction on mortgage interest. If you know that this year you will definitely receive the rest of the deduction for the purchase, you can additionally submit documents for a deduction on the mortgage.

The mortgage deduction is also paid every year, so documents must be filed every year. Each owner who is entitled to a mortgage deduction must submit his own package of documents.

• All documents as a deduction for the purchase;
• Loan/mortgage agreement (original + copies of each page);
• Certificate of mortgage interest paid for a year or several years (original); This certificate is obtained from your bank where you took out the mortgage. Do not confuse this with a payment schedule. Some banks issue a certificate free of charge on the day of application or a few days later. But there are also banks that issue it for free, but you have to wait about a month. If you want to get it faster, you need to pay. The price depends on the bank's policy.
• Loan repayment schedule (original and copy); Typically, this schedule is included in the mortgage agreement, or is a separate document.
• Documents that confirm monthly mortgage payments for a year or several years (originals and copies); These are usually checks, receipts or bank statements. According to the law, a certificate of interest paid is sufficient, and these documents are optional. But tax inspectors will still definitely require them.

If you want everything calculated and processed for you

Then you should contact the company ReturnNalog.ru for a service. Specialists will figure out what deductions you are entitled to, calculate everything themselves, prepare documents and submit them to the tax office. The entire procedure will take less than 24 hours. These services are included in the Standard package. The cost of filing a deduction for one calendar year under the “Standard” package is 1,690 rubles.

Sometimes, during a desk audit, the tax office may make a mistake in the amount of the deduction. VerniteNalog.ru specialists have experience in these situations and will help solve them. These services are included in the Premium package.

This package includes the services of the “Standard” package + specialists monitor the progress of the desk audit and, if necessary, intervene in it.

The cost of filing a deduction for one calendar year under the Premium package is RUB 3,190.

Source: https://prozhivem.com/kvartira/nalogi/dokumenti-na-vychet-po-ipoteke

Obtaining a tax deduction when purchasing an apartment with a mortgage

Published 01/13/20

One of the most frequently asked questions is the question of how much deduction you can expect when purchasing a home with a mortgage. Therefore, in this article we will consider in detail the features of obtaining a property deduction when purchasing a home using credit funds.

Main deduction

When purchasing an apartment/house using mortgage funds, you can receive two tax deductions: the main deduction (clause 3, clause 1, Article 220 of the Tax Code of the Russian Federation) and a deduction for mortgage interest (clause 4, clause 1, Article 220 of the Tax Code of the Russian Federation).

The main deduction when purchasing an apartment with a mortgage is no different from the deduction for a regular purchase. We will not consider it in detail, but will only recall the main points:

• the maximum deduction amount is 2 million rubles. (you can return 13% of this amount - 260 thousand rubles) (more details “Amount of deduction when buying a home”)
• the right to deduction arises after receiving the transfer and acceptance certificate of the apartment (when purchasing under an equity participation agreement) or the date of registration of ownership according to an extract from the Unified State Register (if purchasing under a purchase and sale agreement). You can submit documents for a deduction to the tax authority at the end of the year when the right to it arose (more information “Information on property deduction”, “When the right to deduct arises”)
• You can include both your own and borrowed funds in the deduction (from a legal point of view, loan funds are also considered your expenses).

The list of required documents and the process of obtaining a deduction are described in the articles: “List of documents for obtaining a deduction” and “The process of obtaining a deduction.”

Example: In 2018 Dezhnev G.S. took out a mortgage loan from the bank in the amount of 2 million rubles. and bought an apartment worth RUB 2,200,000. (the certificate of registration of ownership was also issued in 2018). In 2019 Dezhnev G.S.

filed a 3-NDFL declaration for 2018 with the tax office and claimed the main deduction in the maximum amount of 2 million rubles. (for a return of 260 thousand rubles), despite the fact that Dezhnev spent only 200 thousand rubles of personal funds.

He can also claim a deduction for mortgage interest (we will look at this later).

Mortgage interest deduction

When purchasing a home with a mortgage, in addition to the main deduction, you can also receive a deduction for the loan interest paid (return 13% of the actual mortgage interest paid).

Note: Your mortgage payments are divided into two parts: principal payments and loan interest payments. You can receive this deduction only for payments on credit interest (payments on the principal debt will not be included in the deduction).

Wherein:

1. The right to deduct mortgage interest arises only at the moment the right to the main deduction arises. Moreover, if the mortgage was issued earlier than the year in which the extract from the Unified State Register (or the acceptance certificate) was received, then the deduction can still include all the interest you paid on the first mortgage payments.

Example: In 2016, Belsky G.I. he took out a mortgage and entered into a share participation agreement for the construction of an apartment, and in 2018 he received a transfer and acceptance certificate for the apartment.

In this case, contact the tax office minus G.I. Belsky. maybe only in 2019 (despite the fact that the mortgage has been paid since 2016).

At the same time, he will be able to receive a deduction for all interest actually paid (from 2016).

The maximum deduction for mortgage interest is 3 million rubles. (to be returned 390 thousand rubles).

Note: if the loan agreement was concluded before January 1, 2014, then the old rules apply and the amount of credit interest deduction is not limited.

Example: In 2017, Ulanova N.N. took out a mortgage loan of 10 million rubles from the bank. and bought an apartment worth 12 million rubles. For 2017-2018 Ulanova N.N. paid 4 million rubles. mortgage interest. In 2019, Ulanova N.N.

filed a 3-NDFL declaration with the tax office for the year 201 and declared the main property deduction in the amount of 2 million rubles. (to be returned 260 thousand rubles), as well as a deduction for credit interest in the maximum amount of 3 million rubles. (to return 390 thousand.

rub.).

Only mortgage interest actually paid for previous calendar years can be claimed as a deduction.

Example: In June 2018, Grechikhin S.D. took out a mortgage and bought an apartment.

In 2019, he can submit a 3-NDFL declaration for 2018 to the tax office to receive a basic deduction and a deduction for interest paid from July to December 2018. In 2020 Grechikhin S.D.

will be able to submit documents for 2019 (add interest paid in 2019 to the declaration), in 2021 - for 2020, etc.

For what loans and borrowings can you get an interest deduction?

A deduction for credit interest can be obtained not only under mortgage agreements, but for any targeted loan aimed at the purchase/construction of housing (clause 4, clause 1, article 220 of the Tax Code of the Russian Federation).

For example, if you took out a loan from an employer and the contract states that the loan will be used to purchase a specific apartment, then you will be able to receive a tax deduction on the loan interest paid.

If there is no such entry in the agreement, then, despite the fact that you spent the loan on the purchase of housing, you will not be able to receive a deduction (Letter of the Ministry of Finance dated 04/08/2016 No. 03-04-05/20053).

Example: In 2018, Shilova K.O. I took out a loan from an organization to buy an apartment. The agreement clearly states that the loan was spent on the purchase of a specific apartment, therefore Shilova K.O. will be able to receive a credit interest deduction.

Example: In 2018, Tamarina E.M. I bought an apartment for 2 million rubles. with a loan for consumer purposes in the amount of 1 million rubles. Since the loan is not intended for the purchase of an apartment, Tamarina E.M. will be able to receive a property deduction in the amount of 2 million rubles. (for a return of 260 thousand rubles), but will not be able to take advantage of the interest deduction.

Documents for processing mortgage interest deductions

To receive a mortgage interest deduction in addition to the main transaction documents (see.

“Documents”) You will need to submit to the tax office a copy of the loan agreement and a certificate of interest paid. The certificate can be obtained from the bank where you took out the mortgage.

Some banks issue a certificate immediately, and some a few days after a written request (it’s better to check with your bank).

Sometimes the tax authority may also request payment documents for payment of mortgage interest (payment orders, bank statements, receipts, etc.).

In this case, you can either provide documents (if they are available) or refer to the letter of the Federal Tax Service of Russia dated November 22.

2012 N ED-4-3/19630@, which states that a certificate of interest paid from the bank is sufficient and additional payment documents are not required to receive a deduction.

Is it necessary to claim credit interest deduction immediately?

If you have not yet exhausted the main deduction, then you may not immediately claim a deduction for mortgage interest (so as not to submit additional documents to the tax authority). Once your main deduction has been exhausted, you can add information about the credit interest deduction (and attach the relevant documents) to your return.

Example: In 2016, Khavina M.V. I bought an apartment with a mortgage for 3 million rubles. Income of Khavina M.V. amount to 800 thousand rubles. per year (the amount of tax withheld for the year is 104,000 rubles).

In this case, in 2017 she will be able to claim the main deduction (since it makes no sense to claim interest). In 2018, Khavina M.V. will continue to receive the main deduction.

In 2019, since the main deduction will be exhausted, she will add to the declaration data on interest paid from the beginning of payments (from 2016).

Is it necessary to submit documents for deduction every year?

Often a situation arises when the main deduction has already been exhausted, and the amount of interest paid on the mortgage is quite small. In this case, you can not submit documents to the tax authority every calendar year (to save time), but submit them every few years, including in the declaration all interest paid for these years.

Example: In 2015, Detnev L.P. I bought an apartment with a mortgage. According to the terms of the mortgage, he annually pays mortgage interest in the amount of 100,000 rubles. Income of Detnev L.P. per year exceed 2 million rubles.

In 2016, Detnev submitted documents to the tax authority and received a basic deduction and a deduction for interest paid for 2015.

In 2017, Detnev may not file a declaration, but wait a few years and declare all the interest at once: for example, file documents in 2019 and receive a deduction for interest paid in 2016, 2017 and 2018.

Interest deduction for refinancing (loan refinancing)

If you refinance a loan with another bank, you can receive a deduction for interest on both the original and the new loan (clause 4, clause 1, article 220 of the Tax Code of the Russian Federation). At the same time, it is important that the new agreement clearly states that it was issued to refinance a previous (targeted) loan.

Example: Golovanov I.V. I bought an apartment in 2017 worth 3 million rubles. (of which 1 million rubles are own funds, and 2 million rubles are borrowed). In 2018, he refinanced a loan with another bank. Then, upon receipt of the interest deduction, Golovanov I.V. will be able to take into account the interest paid on the first and second loans.

Process of receiving a deduction

The process of obtaining a deduction for mortgage interest is no different from receiving the main deduction and is discussed in detail in the articles: “The process of obtaining a deduction”, “Receiving a property deduction through an employer”.

• Get a deduction
• A personal consultant will fill out a declaration for you for 3%
• from the deduction amount

Source: https://verni-nalog.ru/nalogovye-vychety/pokupka-kvartiry/procenty-po-ipoteke/