Deduction of personal income tax mortgage. Getting a tax deduction when buying an apartment on a mortgage
A property deduction for a mortgage can be obtained both from the cost of housing under the contract (total cost), and from the cost of paying mortgage interest.
How to get a deduction on mortgage interest?
When buying real estate on a mortgage, the owner or spouse of the owner has the right to:
If your income is enough to receive the basic deduction, then you can already begin to receive a tax deduction on mortgage interest. What should be done:
- It is necessary to take a certificate from the bank about the actually paid interest.
If you are applying for a deduction on mortgage interest for the first time, then a certificate from the bank must be requested for the period from the beginning of lending to the end of last year. For example, when applying for a deduction in 2016, a certificate must be issued on December 31, 2015. - Based on a certificate from the bank, a 3-NDFL declaration is filled out in the same manner as the main deduction
- Documents are attached to the declaration according to the list below. A full package of documents is submitted to the tax office.
List of documents for mortgage deduction
If you have already submitted documents for the main property deduction in previous years, and in this you file for a deduction on mortgage interest, then collect the documents from the list:
And your income is enough to receive both the main deduction and the deduction on mortgage interest, then in addition to the documents listed above, you need to submit documents for the main property deduction.
If you are claiming a property deduction for the first time, but your income is not enough to receive the main deduction (13% of the value of the purchased property, but not more than 260,000 rubles), then you do not need to declare a deduction for mortgage interest. You need to file first on the main property deduction.
The size of the property deduction on expenses for the payment of interest on the loan
Since the beginning of 2014, the property deduction for mortgage interest was limited:
- if the housing was purchased before January 1, 2014 (the title / deed of transfer was completed before January 1, 2014), then a deduction can be received from the entire amount of interest expenses;
- if housing was purchased after January 1, 2014, then the deduction can be obtained from an amount not exceeding 3 million rubles (if the amount of expenses for paying interest on a loan (not for a year, but for the entire loan period) is more than 3 million rubles, then the deduction will be provided only from 3 million rubles, if lower, then from the actual amount).
- If the amount of the loan received exceeds the value of the purchased property, then the deduction from the cost of paying mortgage interest will not be received from the entire amount. The size of the deduction will be calculated based on the cost of buying real estate in the total loan amount.
According to the Letter of the Ministry of Finance of the Russian Federation of August 22, 2014 No. 03-04-05 / 42128.
Can I get a deduction from the loan?
When buying real estate on a mortgage, the owner has the right to both a basic property deduction (13% of the cost of housing under the contract, but not more than 260 thousand rubles), and a deduction from the cost of paying interest on the loan (13% of these expenses) .
A deduction from expenses for repaying a loan cannot be obtained, but from expenses for repaying interest on a loan, it is possible, but there are a number of conditions:
- not every loan can be deductible. It should be targeted (taken and actually spent on the construction or purchase of housing). That is, a contract must be concluded with the organization that provided the loan, which indicates the purpose of the loan: the acquisition or construction of housing in the Russian Federation in accordance with paragraph 4 of paragraph 1 of Article 220 of the Tax Code of the Russian Federation. You can’t get a deduction from a non-intended loan, even if you purchase real estate using these funds.
According to the Letter of the Ministry of Finance of the Russian Federation dated 06/19/2014 No. 03-04-07 / 29416; - the loan should be actually spent on the purchase of housing in the Russian Federation, and not for other purposes;
- a deduction from the cost of repaying the loan can only be obtained for the same housing for which the property deduction is made if the property was purchased before January 1, 2014.
- when buying real estate with a mortgage after January 1, 2014, it became possible to receive a deduction from the cost of paying mortgage interest, even if the early taxpayer took advantage of the deduction for the purchase of another apartment purchased at the expense of only own funds. According to the Letter of the Ministry of Finance of the Russian Federation dated 12.16.14 No. 03-04-05 / 64922. Thus, the deduction for expenses on the payment of mortgage interest is no longer tied to the main deduction: the main deduction can be obtained for one property, and the deduction for mortgage interest for another property according to the Letter of the Ministry of Finance dated 03.11.15, No. 03-04- 05/63421, Letter of the Federal Tax Service of the Russian Federation dated 05.21.2015, No. BS-4-11 / 8666.
Mortgage deduction for joint ownership
If the property was acquired in joint ownership before January 1, 2014, then upon the first submission of the 3-NDFL declaration to the tax office, a statement is made on the distribution of the deduction between the owners. It indicates who will receive the deduction and in what proportion. The mortgage interest deduction is allocated according to this application. It is impossible to draw up a basic deduction of 50% by 50%, and a deduction on mortgage interest to receive 100% at 0%, for example.
If the property was acquired in joint ownership after January 1, 2014, then upon the first submission of the 3-NDFL declaration to the tax office, a statement is issued on the distribution of the deduction between the owners. It indicates who will receive the deduction and in what proportion. The deduction on mortgage interest may be distributed annually on an additional application. For example, to issue a basic deduction of 50% to 50%, and a deduction for mortgage interest to receive 100% at 0% in the first year, and the next year in a different proportion.
According to the Letter dated 01.10.2014 No. 03-04-05 / 49106
Property deduction on mortgage with shared ownership
The deduction is made from the year when the balance of the deduction for the principal amount (the cost of housing under the contract) is received. There is no sense in declaring a deduction on mortgage interest earlier.
When registering shared ownership, it must be borne in mind that the deduction on the mortgage is distributed according to the share indicated in the certificate of ownership. It is impossible to draw up a different proportion, while it does not matter who is the borrower, who is the co-borrower.
All citizens of the Russian Federation who apply for a loan from a bank for an apartment can receive a tax deduction on interest on a mortgage when they purchase real estate for the entire period during which the mortgage tax has been paid. To receive the accrued amount, you must submit documents to the tax office. The legislation allows the receipt of part of the funds if the transaction was executed at any state bank of the Russian Federation.
What is a property deduction on mortgage interest
The borrower has the right to return the money paid to the state treasury by taxes, or not to pay taxes. In this case, you can get a refund of part of the taxes, that is, reduce the amount of income on which tax is charged. A mortgage interest tax deduction is cash that reduces the amount of income for which taxes are levied. The purchase of real estate (apartment or land) using a mortgage loan and the payment of money on it is one of the cases giving the right to a property deduction from interest on a mortgage loan.
Base deduction
Citizens who apply for a mortgage when buying an apartment have the right to register interest. The return procedure is carried out in accordance with the third subparagraph of the first article of the Tax Code of the Russian Federation, which regulates the tax reporting period and the list of necessary documents. Refund of interest - under subparagraph four. The right to registration is valid if there is a certificate of purchase of housing. The maximum amount that a property deduction of interest on a mortgage may have is two million rubles.
Mortgage interest deduction
A citizen who bought property with a mortgage is required to pay, in addition to the main debt for the apartment, each month a certain amount to the bank. Over the entire period of payments, a certain amount of repaid debt is accumulated. The borrower has the right to return at a time 13% of the amount for mortgage interest, but not more than three hundred and ninety thousand rubles. This feature applies to loans issued after 2014. A citizen can receive a deduction on mortgage interest once in a lifetime.
Payment of interest to the bank can be made at any time and for any period of payment of a mortgage loan for housing. Cash can be obtained through the employer or the tax office. The choice of the method of receipt depends on the urgency of payment and the amount (some employers have the right to withhold interest for the provision of intermediary services).
Who should
The tax inspectorate compensates the citizen for the bank with a deduction of interest on the mortgage. A mortgage interest deduction is not required immediately for housing compensation. If the housing was purchased with a mortgage, and the citizen already used the deduction for the cost of the purchase, a refund can be made later. Compensation for the deduction of interest on the mortgage is due to all citizens of the Russian Federation who work officially during the entire term of payment of the debt.
Where to apply for tax deduction
A citizen can apply for a deduction on interest on a mortgage in the following organizations:
- government services portal;
- tax inspection at the place of residence;
- any multifunctional center (MFC).
Federal Tax Service at the place of registration
The tax office at the place of registration carries out any operations related to the payment of tax interest. The number and address of your FTS can be found on the public services portal by entering the registration address and TIN number (tax identification number). At the place of registration, you can only submit an application and a 3-NDFL declaration, after which the application will be considered in a short time. If the right to receive payment is confirmed, it will be necessary to convey the rest of the package of documents.
MFC
Multifunctional center (MFC) is engaged in registration of tax payments on mortgage loans. To receive a payment, it is necessary to fill out a declaration in accordance with form 3-NDFL, after the end of the year in which payments began to be made. Multifunctional centers are not geographically tied to citizens, and anyone who wants to receive interest payments can apply to any of them located on the territory of the Russian Federation.
Government Services Portal
You can get a deduction on interest on a mortgage by submitting an application through the official portal of public services. For this operation, you need to register in the system, specify the data (series, number, registration) of the passport of a citizen of the Russian Federation, SNILS and other documents. After the administration checks the accuracy of the data, the user will be able to submit an electronic package of documents to return interest on the mortgage. In addition, on the portal you can learn how to get money from interest on mortgages in other organizations.
How to return interest on a mortgage through a tax
In order to return the amount of interest through the tax office, you must submit the appropriate package of documents. First of all, you need to calculate and fill out the declaration form. Papers are submitted with the expectation that the money will be returned within three months, counting from the date of filing the documents. The term for a refund depends on the bank in which the mortgage is registered, the amount of money, and how to get a deduction from interest on the mortgage (in cash or to a bank account).
Filing an application of a standard form
To make a payment at the tax office, you need to go to the terminal of the electronic line to select the item “fines, penalties, deductions”. The employee in the office indicated on the coupon will issue an application form in accordance with the needs of the citizen (No. 289 / BG-3-04 / 256). After filling out the application in accordance with the instructions specified therein, it is transferred to the tax officer, and the applicant has a certified copy in his hands.
The application is considered within ten business days. After considering the application, a notice of a positive or negative decision will be sent to the citizen at the address of registration indicated in the application in the form of a letter or in the form of a text, voice message to the contact phone. In the case of a positive decision, it will be necessary to convey the rest of the package of documents.
Documents for deduction
To receive the amount of money, you must submit the following documents:
- statement;
- certificate of the bank in which the mortgage loan was received;
- certificate of employment;
- documents confirming the right to housing;
- tax return (form 3-personal income tax);
- passport (original and copies);
- additional documents indicating shared ownership, for example, a marriage certificate (if necessary).
Receiving funds to the account
In order to receive payment, the statement should indicate the full details of the account to which the tax will have to transfer the funds. Refunds can be made in the following ways:
- to withdraw money in cash at the bank;
- to a bank account;
- to a debit or credit card account.
Mortgage interest tax refund through employer
The state can compensate interest for a mortgage housing loan and principal debt not only through the tax authority (with the calculation of the total annual amount), but also through the employer. The method of calculating annual payments is used. To use this scheme, you need to do the following:
- To order in advance from the tax inspection a certificate (3-personal income tax) on the existence of the right to compensation and payment of mortgages.
- Submit a certificate to the accountant at the place of work.
- Get a one-time payment in accounting within three months from the date of filing.
When can I get a tax deduction
Cash for mortgage interest can be received at any time, but not earlier than a year after the start of payments on a mortgage loan. You can return the money in a lump-sum payment or annual transfers to the account, depending on the desire of the citizen. In addition, the payment can be received not for the entire period, but for one or two years of the time of payment of the mortgage loan.
Limitation period
Refunds in the form of a tax deduction are not limited to limitation periods, according to the laws of the Russian Federation. A citizen has the right to receive a tax deduction before its full application. In addition, a sum of money can be paid for any tax period. However, the homeowner can exercise the right to deduction only in the amount that was valid when the rights to this payment appeared.
How is the deduction on interest paid on a mortgage loan calculated?
The deduction amount reduces the so-called taxable amount with which the citizen withheld income tax. The recipient may refund in the form of returned taxes 13% of the deduction for the reporting period. The amount may be the entire amount of money actually paid, but the amount of payments is limited according to the mortgage loan agreement - three million rubles. The maximum amount of tax to be refunded may reimburse up to 13% of the amount paid, i.e. if, for example, 100 rubles were paid, the compensation will be 13.
Distribution of tax compensation for spouses
In case of joint ownership of the purchased property by husband and wife (shared ownership), the main deduction (for real estate and interest) is distributed in accordance with the size of the share of each of the owners. The owner does not have the right to provide his share of the amount of the deduction of compensation to another copyright holder. Each of them has a deduction for purchase, accrued interest for a loan on an apartment in a mortgage. If the husband or wife has already filed a refund from the tax service for the apartment, the other shareholder can receive only half the deduction.
Refund of personal income tax when refinancing a mortgage loan
A citizen who bought housing with a mortgage and applied to another bank with a request for a one-time refinancing of the mortgage, thereby actually reducing the basic cost of paying interest to the bank, can also apply for interest in accordance with the first and second agreements. In this case, the documentation should indicate that the loan was issued with the aim of refinancing the previous target loan.
With personal life insurance
A mortgage loan in most banks implies that a citizen will insure their health and life. For the entire time of the mortgage loan, a large sum of money accumulates. Since 2016, Russia has been allowed to return personal income tax with personal life insurance, but there are several requirements for an insurance contract:
- life insurance period of 5 years;
- mortgage insurance policy paid by the borrower;
- the borrower is a citizen of the Russian Federation;
- a citizen in good faith paid taxes from his salary.
Who is not entitled to a personal income tax return on mortgage interest
They may refuse to provide benefits in the form of a refund of part of tax payments for mortgage interest if the borrower indicated in the application information that is untrue or submitted to the authority an incomplete package of documents necessary for processing. In this case, a tax refund is provided after all documents have been submitted and the correct data have been indicated. The complete failure of the IFTS to provide a mortgage interest deduction occurs under the following circumstances:
- people working informally, i.e. without concluding an employment contract with the employer;
- persons engaged in commercial activities and those who work on the patent system of taxation;
- citizens who have become legal owners of housing purchased by third parties;
- persons who have previously applied for a mortgage deduction for the same facility;
- interdependent citizens (the purchase of apartments or other housing from relatives).
Video
The tax (mortgage) deduction is a type of property and represents a kind of monetary compensation for the funds spent on the purchase of housing. The scheme is simple: you are buying an apartment on a mortgage, the state returns part of the money invested to you. How much will be returned to you as part of the deduction, who can use the program, and what documents you need to collect for this - these and other nuances are regulated at the legislative level (Tax Code, Article 220, Section 2.). When calculating the amount, the value of the property and the interest paid are taken into account. The collection of documents and consideration of issues involved in the tax inspection.
Recent changes to the legislative framework were introduced on January 1, 2014. Citizens were allowed to exercise the right several times in their lives (according to 2008 standards, this could be done only once).
Buying an apartment, house, land, you can return part of the money, but not all citizens have this right. The first requirement is the availability of taxable labor income. As an employee, you do not receive all of your wages. 13% of the fee goes to the state treasury in the form of income tax. That is, in order to compensate for part of the amount spent on the purchase of residential real estate and on the payment of interest on a mortgage, you must be a responsible taxpayer.
How much will the state return to you? - Compensation consists of two types of deductions:
- 13% of the cost of an apartment or other type of real estate;
- 13% of the total interest on the mortgage, and only interest that is actually paid and debited from the payer's account is taken into account.
Who has the right to deduction
The first candidates for compensation are taxpayers receiving a “white salary”. If only part of the income is taxed, and the other half is handed out and is not fixed anywhere, then only official salaries will be taken into account when calculating the amount. When a client works at several enterprises at once, they take into account the total income. Also, other types of cash receipts are added, for example, those received from rental housing or commercial real estate, from the sale of shares, other securities.
If a woman bought an apartment while on maternity leave, she will be able to issue compensation when she returns to work. The deduction for housing purchased before the decree is received taking into account the income recorded before the purchase of the property. If a woman did not work long before maternity leave and there is not enough income to cover the deduction, she will receive the remaining money after she starts work.
In some cases, the requirements of the Tax Code apply to foreign citizens. In order for a national of a foreign country to be able to partially compensate for expenses on buying real estate in a mortgage in Russia, he must reside in the country on a permanent basis for at least 183 days (i.e., be a resident) per year and have an official place of work with a taxable salary.
What real estate objects are subject to the Tax Code
Property deduction is due in the following cases:
- Purchase of a room, a country house, an apartment - all or a share;
- Construction of facilities;
- Purchase of a land plot and a residential building located on its territory, including one that is under construction;
- Payment of interest on the repayment of targeted (mortgage) loans issued for the purchase or construction of the above facilities;
- Repair, decoration of residential premises, if they were purchased from the developer in draft form;
- Project development, estimates;
- Laying utilities.
Payments are not made if:
- An apartment or other property was purchased from a relative (this refers to interdependent persons, for example, spouses, children, parents, etc.);
- The object was purchased from an employer, co-worker, etc .;
- A person is registered with the tax authority as an individual entrepreneur and pays taxes under a special tax regime (simplified, imputed, etc.);
- You receive a pension and do not work.
How to get a property deduction?
The procedure is divided into 3 stages:
- Collection of documents;
- Transfer of documents to the tax authority;
- Checking the information provided and transferring money.
The tax inspector is served:
- Passport (by law you can have another identification card);
- Application for a deduction;
- Declaration (3-personal income tax);
- Inquiries, trade documents confirming the amount of expenses and the fact of their occurrence;
- Certificate of paid income taxes (2-personal income tax);
- Certificate of registration of ownership;
- Mortgage agreement.
Based on the received documents, the calculation of the payment amount is carried out. The law sets a limit on compensation for interest paid on a mortgage loan. The amount should not exceed 3 million rubles. There are no restrictions on the interest on mortgage agreements concluded before January 2014. Information about the amount of interest paid at the end of a specific reporting period (usually at the beginning of each new year) must be submitted to the tax office. The main requirement is that payment documents must be issued to the person who receives the deduction.
Tax refund is possible only for the last 3 years of work. If you didn’t manage to get the compensation on time, you can do it at any time - the law does not set time limits on this. If this year you have not received the full amount of the deduction, the balance is carried forward to the next. The duration of the registration procedure is up to 4 months.
Calculation Example
Petrov will be able to receive a deduction for interest during the entire term of the contract. Since the mortgage was registered after the new rules came into effect (later than January 1, 2014), the maximum allowable amount is 3 million rubles, which means that a deduction can be made up to 390,000 rubles.
When acquiring an apartment in a mortgage, an individual taxpayer is entitled to a property tax deduction. We will tell you about the procedure for applying a property deduction for a mortgage in our consultation.
Who is entitled to a property tax deduction on a mortgage and in what amount?
Speaking of a property deduction for a mortgage, we mean:
- a deduction in the amount of actual expenses for the purchase of an apartment in the territory of the Russian Federation (subparagraph 3, paragraph 1, article 220 of the Tax Code of the Russian Federation);
- a deduction in the amount of actual expenses for the repayment of interest on a mortgage loan taken to purchase an apartment (paragraph 4, paragraph 1, article 220 of the Tax Code of the Russian Federation).
The right to a property deduction for a mortgage 2017-2018 is held by an individual whose income is taxed at a rate of 13% and who acquires an apartment in his own property (including joint, shared) or in the ownership of his children under 18 years of age (paragraph 1, 6, Article 220 of the Tax Code of the Russian Federation). At the same time, speaking of the rate of 13%, we mean the rate provided for in paragraph 1 of Art. 224 of the Tax Code of the Russian Federation. Indeed, for example, the income of highly qualified foreign specialists (VKS) is also subject to personal income tax at a rate of 13%, but not on the basis of paragraph 1 of Art. 224 of the Tax Code of the Russian Federation, and in accordance with paragraph 3 of Art. 224 of the Tax Code of the Russian Federation. Therefore, the property deduction of the videoconferencing is not allowed (Letter of the Ministry of Finance dated 10.27.2017 No. 03-04-05 / 70750).
We also remind you that the property deduction does not apply to income from equity participation in the organization (to dividends), as well as in the form of winnings received by gambling participants and lottery participants (Clause 3, Article 210 of the Tax Code of the Russian Federation).
The property deduction for a mortgage shall be assumed in the following amount (clauses 3, 4 of Article 220 of the Tax Code of the Russian Federation):
Type of property deduction | The amount of deduction, rub. |
---|---|
apartment purchase costs | 2 000 000 |
repayment of interest on a mortgage loan | 3 000 000 |
It is important to remember that if a property deduction for an apartment in the amount of 2,000,000 rubles can be used for several real estate objects (say, for an apartment worth 1,800,000 rubles and part of the cost of the apartment in the amount of 200,000 rubles), then the property deduction for interest on the mortgage It is provided only for one real estate object (Clause 8, Article 220 of the Tax Code of the Russian Federation, Letters of the Ministry of Finance of 08.21.2013 No. 03-04-05 / 34150, of 08.14.2013 No. 03-04-08 / 32992).
Of course, for a particular calendar year, an individual is entitled to receive a property deduction only within the limits of taxable income. For example, in 2017, an apartment worth 8,000,000 rubles (excluding interest) was bought, and income taxable at a rate of 13%, which can be reduced by deduction, for the same year amounted to 720,000 rubles. Then the property deduction for the year will be provided not in the maximum amount of the deduction, but in the amount of 720,000 rubles. Consequently, the personal income tax for return will be 93,600 rubles (720,000 rubles * 13%). The rest of the deduction in the amount of 1,280,000 rubles (2,000,000 rubles - 720,000 rubles) can be carried forward to the next years.
And even when the deduction on expenses for the purchase of an apartment is used, the interest deduction can continue to be declared annually, based on the actually paid interest on the mortgage and until the amount of interest paid exceeds 3,000,000 rubles.
Who should I apply for a property deduction on a mortgage?
An individual taxpayer can apply for a property deduction for an apartment (items 7, 8 of article 220 of the Tax Code of the Russian Federation):
- or to the tax office at the end of the year by submitting;
- or to the employer during the year, but with the preliminary receipt of the Notification of the right to deduction from the tax inspectorate in the form approved by Order of the Federal Tax Service of 01/14/2015 No. MMV-7-11 / 3 @.
Documents for obtaining a property deduction for a mortgage
If an individual applies for a property deduction to the tax office at the end of the year, then the following must be attached to the 3-NDFL declaration:
- an agreement on the purchase of an apartment (upon purchase of a secondary) or an agreement on participation in shared construction and a deed of transfer or other document on the transfer of the shared construction object by the developer and its acceptance by the participant of shared construction, signed by the parties (when purchasing an apartment in a house under construction);
- documents confirming the ownership of the apartment;
- birth certificate of a child - when parents acquire an apartment in the ownership of their children under the age of 18;
- documents confirming the expenses incurred by the taxpayer (receipts for receipt orders, bank statements on the transfer of funds from the buyer's account to the seller's account and other documents);
- bank certificate on interest paid on a mortgage;
- certificate 2-personal income tax;
The same documents will need to be submitted to the tax inspectorate in order to receive a Notice of the right to deduction upon subsequent appeal to the employer.
But when an individual already applies to the employer in order to receive a property deduction for a mortgage, the documents will be as follows:
- Notification issued by the tax office;
Mortgage refinancing and property tax deduction
Obtaining a property deduction when refinancing a mortgage is not prohibited by tax law. This means that regardless of the number of mortgage loans refinancing, the taxpayer retains the right to property deduction. The main thing is that the agreement on refinancing a mortgage or subsequent re-lending of a refinanced mortgage clearly shows the mortgage nature of the relationship. That is, the refinancing agreements should contain references to the initial mortgage loan, as well as loans provided earlier for the purpose of refinancing it (
Of all credit banking products, a mortgage is the most burdensome and long-lasting. But sometimes it is such a loan that allows citizens to realize their dream of acquiring their own housing. In this article we will tell you how to return interest on a mortgage aimed at buying real estate, using the tax deduction.
According to Russian law, a citizen can regain part of the funds paid for taxes or reduce the tax itself when buying a home on credit. This option of deduction is called property deduction and was created with the aim of social assistance to citizens who purchase housing for their own money.
The law on the refund of part of the amount due to a tax deduction is regulated by Chapter 23 of the Tax Code of the Russian Federation (hereinafter - the Tax Code), and various legal acts that adjust the procedure for registration.
According to the law, every citizen with an official income that is taxed at a rate of 13% and pays taxes on these incomes every month has the right to social compensation in the form of a 13% return. It should be understood that part of the amount paid for the loan is not returned by the bank itself, but by the state.
This deduction is called property deduction, is regulated by article 220 of the Tax Code of the Russian Federation and applies to acquired property. It does not matter if the purchase of a house / apartment was paid by a citizen immediately from his own funds or was issued through a bank target loan.
Why exactly 13% of the loan amount is returned?
The fact is that this is how much individuals pay, according to paragraph 1 of Art. 224 of the Tax Code of the Russian Federation, from all income. In this case, the tax is levied not only on the official salary, but also on any other source documented. This can be rent for land, for a garage or a room in a communal apartment, as well as taxable income from the sale of any property. By submitting an annual declaration to the fiscal service, citizens are required to contribute all their income received in the state. It is from the total income that the percentage is calculated.
At the same time, a citizen has two options for the return of his money lost on the payment of personal income tax:
- basic property, that is, aimed directly at the acquisition of housing;
- decrease in expenses on mortgage interest (actually paid interest).
What is the difference between these two species?
The fact is that citizens who apply for non-mortgage housing may also apply for fiscal compensation. In this case, only the first type of deduction is provided, that is, in the amount of expenses directed directly to the acquisition of housing.
The right to receive a refund is a document confirming ownership, the contract of sale. With mortgage lending, a tax deduction allows you to reduce the financial burden of interest and, thus, reduce the amount of monthly payment.
The main condition for such a return is the designation of the targeted loan. That is, in a situation of a cash loan without indicating the main goal, a citizen cannot count on a mortgage tax deduction.
Thus, a property deduction can be made both for the total purchase amount and for actually paid bank interest. The only difference in these cases will be the amount returned.
Which option to choose depends on the amount of the mortgage, the income of the applicant and the date the title to the property arose.
Compensation of interest on a mortgage when buying an apartment: the main nuances
Many people who have already burdened themselves with a mortgage are interested in the question of the time frame for applying for a partial interest refund. The conditions of the Tax Code of the Russian Federation are quite loyal and do not oblige the borrower to collect all documents immediately when applying for a mortgage.
The client has at least three years to submit an application to the fiscal service for a mortgage deduction. The general calculation of the deduction is formed from the moment of signing the mortgage agreement.
The procedure for processing a tax deduction contains a lot of nuances that you need to know before submitting an application.
Highlights:
- When choosing the main property deduction, the payment can be received several times, for several housing units, until the maximum established limit is reached (this applies only to those citizens who purchased housing after 01/01/2014 and did not use the property deduction before 01/01/2014). When a client chooses an interest deduction, this service can be used only once.
- Only a resident of the country can apply for fiscal compensation. At the same time, he must have an official income and regularly pay taxes.
- To calculate the total deduction, data for all the past three years is taken into account if the client submits an application after this time after signing the contract. In the event that the amount of personal income tax paid is less than the calculated deduction, it will be transferred to the borrower on an annual basis to the account until it reaches the maximum limit.
- In the case of tax refunds on mortgage interest, a limit of 390 thousand rubles or 13% of the maximum amount of 3 million rubles is set. This is the amount of interest on the loan. In addition to paying the main debt (loan body), the borrower pays interest on a monthly basis. So fiscal compensation allows you to return the amount of 13% of the actually paid interest. This rule, i.e. a limit of 3 million rubles applies only to mortgages issued after the amendments made in 2014. The return on mortgage loans purchased before 01/01/2014 has no limit, i.e. 13% is returned from all interest actually paid. The right to use the interest deduction is given to the client only once. Moreover, this option is possible only if during the entire billing period the borrower had an official income taxed at a rate of 13%.
- The deduction can only be made on housing purchased in the country.
- A refund will not be made if the tax authorities find out that the purchase and sale transaction occurred between close relatives.
- The amount of annual return is limited by taxes paid (cannot be more than the amount of taxes paid).
- There is no limitation period for fiscal compensation, however, the calculation will be made on the date when the transaction was concluded and, accordingly, the applicable tariffs of that period are applied.
- When applying for a property deduction for housing purchased on a mortgage before 2008, the cost limit will be 1 million rubles. Registration of sales after 2008 limits the amount of the main deduction to 2 million rubles. Even if the apartment is more expensive, the deduction will be calculated from the maximum amount. If the price of real estate is less, then it is calculated from the amount specified in the contract.
- When refinancing a loan by another bank, the borrower can also rely on a partial repayment of funds paid. However, the contract must be executed as a target. Otherwise, the taxpayer will be denied compensation.
For borrowers who signed a mortgage agreement after January 1, 2014, the amount of the deduction is limited to 3 million rubles.
Thus, when submitting an application and preliminary calculation of the amount of compensation, it is important to consider the date of conclusion of the transaction.
The calculation scheme is quite simple. A citizen who has issued a mortgage is exempt from income tax. Moreover, such a refund can only be made for actually paid interest.
The borrower can also determine the amount of return on his own. To do this, two factors must be considered:
- total amount of real estate;
- total amount of tax paid.
The amount of real estate is indicated in the contract. At the same time, the law provides for the inclusion in the total cost of finishing work, if it is included in the contract. In the case of buying a home in a new building, often the total amount is included in the mortgage agreement, including finishing work along with the purchase of materials. So in this case, the property deduction will be calculated from the total total.
Given the various maximum rates for calculating the mortgage deduction, let's look at specific examples of what you can count on.
Example No. 1
You issued a mortgage worth 50 million rubles in the summer of 2013 (i.e., before the new rules came into force on 01/01/2014). For the entire period of using the loan, interest payment amounted to 6 million rubles. In this case, it is possible to apply for a tax refund in the amount of 1,040 million rubles (2,000,000 * 13% +6,000,000 * 13%).
If such a situation had occurred exactly after January 1, 2014, the deduction would have amounted to 650 thousand rubles (2,000,000 * 13% +3,000,000 * 13%).
Example No. 2
Citizen N. took a mortgage for the development of the house in the amount of 3.5 million rubles. According to the established limits, only 2 million rubles are deductible for deduction. Thus, the calculation will be carried out as follows:
2 million * 13% \u003d 260 thousand rubles (this is the amount of compensation for a mortgage loan).
Who is eligible for compensation?
According to the Tax Code, the following are entitled to fiscal property compensation:
The right to compensation can be exercised in the local fiscal service or through the employer, through which income tax is deducted.
Who is not entitled to such compensation?
- Disabled citizens of the country.
- Pensioners who do not pay 13% tax from other sources of income.
- Working people, but at the same time receiving non-official salaries “in envelopes”.
- People who made a purchase and sale transaction between relatives.
- Entrepreneurs engaged in a special simplified scheme.
As mentioned above, the Tax Code provides several options for deductions, one of which is property. There are still social and professional. When applying for other types of deductions (for training, treatment), only the amount of tax paid will be the barrier.
Refund of personal income tax on interest on a mortgage: determine the size of the amount
The exact amount of compensation will be determined by specialists after approval of the application and verification of all documents. For each citizen, it will be different depending on:
- cost of housing;
- date of conclusion of the transaction;
- the amount of interest paid.
When compensating interest on a mortgage, from the total amount of interest already paid, the specialist calculates 13% and makes a return to the current account
Citizen N. issued a mortgage for a period of 20 years at 15% per annum, having acquired an apartment worth 1,900,000 rubles.
1.9 million * 15% \u003d 285 thousand rubles (interest for the year)
285 thousand rubles * 13% \u003d 37,050 rubles (exactly this amount will be returned for the year).
It is important to understand that when calculating the amount of compensation, specialists take as a basis the total amount of taxes paid by the borrower. That is, in fact, if the amount of taxes was less than the deduction due, then this right will apply to subsequent years until the full use of funds.
If a situation arises that it is necessary to return compensation immediately for several years, then the application procedure will be identical. If you first learned that you can regain part of the money spent on housing on credit, then this does not mean that time is lost.
It is important to determine the fact of the deduction of personal income tax at the time of the transaction. If you had official employment and regularly deducted income tax, you can write to the fiscal service an application for a refund for several years immediately, but not more than 3 previous years
Where to go?
To exercise the right to return a partial amount for a paid mortgage, you can choose one of three ways:
- Visit the tax office in person at the place of registration.
- Fill out the online form on the Russian Public Services Portal.
- Apply through the multifunctional center.
You can find out the number and address of the fiscal service in your city through the government services portal. To do this, enter your personal data: TIN and address. Keep in mind that you need to choose a branch not at the place of actual residence, but at the registration address.
The electronic filing option is the most convenient and simple. In order to use the service, you must register on the site and enter your personal account.
When registering, you must specify the personal data of the taxpayer (passport number and series, TIN, registration address, SNILS). The opportunity to submit an application together in the completed declaration form will be available only after the administration checks the accuracy of the entered data.
The multifunctional center is not geographically attached to specific addresses and accepts applications from all citizens of the Russian Federation. To use the deduction service, you must contact the center with the appropriate package of documents and apply for a refund on the mortgage.
What documents need to be collected?
To minimize the waiting time for the application for a refund and quickly arrange the service, we suggest that you familiarize yourself with the package of documents required for the tax deduction:
- personal documents of the taxpayer (passport and TIN);
- contract of sale of property;
- proof of ownership of real estate;
- declaration ();
- mortgage payment receipts and certificate of current debt;
- certificate in the form 2-NDFL (original);
- refund application;
- loan payment schedule (as an annex to the contract);
- bank statement with the account number for crediting.
As you can see from the list, any adult citizen of the Russian Federation who has official employment and regularly pays taxes to the state can claim partial compensation for the money spent on buying a house.
What matters here is not even official work, but monthly income tax payment of 13%. Therefore, if a “working" person regularly gives part of his income to the state and submits a declaration, he can count on fiscal compensation.
In the event that the apartment is shared by both spouses, the original and a copy of the Marriage Certificate must be submitted to the tax office.
If a citizen claims for a tax deduction immediately for several years, but cannot submit payment documents for a loan, a tax payment receipt is allowed.
The amount of fiscal compensation is determined by tax officials after checking documents and confirming payment of personal income tax. After approval of the application, the money will be transferred to the taxpayer account. This can take up to 90 business days by law.
In addition to the standard list of documents, tax officials may require additional papers. For example, during a loan agreement, a bank was declared bankrupt and restructured. Thus, the mortgage agreement becomes the property of another Lender, which means that it is necessary to provide data on the assignment of the agreement to another bank.
The client can choose the method of returning money through a bank account, through a cash desk or to a card.
Return Procedure: Step-by-Step Instruction
So, in order to return your legal 13% paid to the state treasury in the form of income tax, you need to perform the following steps.
Table 1. Step-by-step refund instructions
Step | Description |
---|---|
Step number 1. Collection of documents required for compensation | At the end of the reporting period, it is necessary to collect a full package of documents and contact the fiscal service at the place of residence. It is not necessary for this to personally come to the reception. Today you can apply online. |
Step number 2. Filling out the declaration in the form of 3-personal income tax. | In this document you must specify: The declaration can be completed on the official website of the National Assembly of the Russian Federation by registering and logging into your personal account. |
Step number 3. Submission of applications, documents and declarations to the fiscal authority. | When sending an application for social compensation by mail, in a letter you must make an inventory of all documents. It is also necessary to request written confirmation of receipt of a letter and a package of all documents. The taxpayer must take into account that the declaration indicates the total income from which income was paid. |
Step number 4. Verification of documents by the service and with a positive review, tax refund to the current account. | Together with the documents, the applicant submits a statement indicating the current bank account for crediting funds. |
We return the property deduction through the employer
If the refund is made through the employer, the taxpayer wages will be automatically increased by the amount of the deduction due until the full calculation of the money.
To select this option, you must perform the following steps:
- Contact your local tax office and take a notice of permission to pay personal income tax on property acquisition.
- Give the employer a statement from the National Assembly.
In order for the tax inspectorate to “approve” this option for processing the deduction, the following package of documents must be provided:
- personal data;
- application for fiscal compensation;
- contract of sale;
- loan agreement;
- a certificate of employment certified by accounting.
From the moment of filing the application to the employer, withholding of the employee will automatically cease withholding income tax until the full calculation of the property deduction.
After the end of the reimbursement, personal income tax automatically begins to be charged on wages. An application for a property deduction from the employer, as well as a notice of the existence of such a right in the tax, must be taken annually.