Personal income tax deduction 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 do I get a mortgage interest deduction?
When buying real estate with a mortgage, the owner or spouse of the owner has the right to:
If your income is sufficient to receive the basic deduction, then you can already begin to receive a tax deduction for mortgage interest. What should be done:
- It is necessary to take a certificate from the bank on the interest actually paid.
If you are applying for a mortgage interest deduction for the first time, then you need to request a bank statement for the period from the beginning of lending to the end of the past year. For example, when making a deduction in 2016, a certificate must be issued by 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 complete package of documents is submitted to the tax office.
List of documents for applying for a mortgage deduction
If you have already submitted documents for the main property deduction in previous years, and in this year you are applying for a mortgage interest deduction, then collect the documents according to the list:
And your income is enough to receive both the main deduction and the mortgage interest deduction, 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 claim a mortgage interest deduction yet. You need to apply first for the main property deduction.
The amount of the property deduction for the cost of paying interest on the loan
Since the beginning of 2014, the property deduction for mortgage interest has been limited:
- if the housing was purchased before January 1, 2014 (the right of ownership / acceptance certificate was issued before January 1, 2014), then a deduction can be received from the entire amount of interest expenses;
- if the housing was purchased after January 1, 2014, then a deduction can be obtained from an amount not exceeding 3 million rubles (if the amount of expenses for paying interest on the loan (not for a year, but for the entire lending 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 amount 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 dated August 22, 2014 No. 03-04-05 / 42128.
Can I get a loan deduction?
When buying real estate with a mortgage, the owner has the right both to the main property deduction (13% of the cost of housing under the contract, but not more than 260 thousand rubles), and to the deduction from the costs of paying interest on the loan (13% of these costs) .
You cannot get a deduction from the cost of repaying a loan, but you can get a deduction from the cost of repaying interest on a loan, but there are a number of conditions:
- Not every loan can be deductible. It must be targeted (taken and actually spent on the construction or purchase of housing). That is, an agreement must be concluded with the organization that provided the loan, which indicates the purpose of the loan: the acquisition or construction of housing on the territory Russian Federation in accordance with subclause 4, clause 1, article 220 of the Tax Code of the Russian Federation. Get a deduction from non-purpose loan it is impossible, even if the purchase of real estate at the expense of these funds.
According to the Letter of the Ministry of Finance of the Russian Federation dated June 19, 2014 No. 03-04-07 / 29416; - the loan must actually be spent on the purchase of housing in the territory of the Russian Federation, and not for other purposes;
- A deduction from the cost of repaying a loan can only be obtained for the same housing for which a property deduction has been issued, 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 earlier taxpayer used 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 of December 16, 2014 No. 03-04-05 / 64922. Thus, the mortgage interest deduction is no longer tied to the main deduction: the main deduction can be received for one property, and the mortgage interest deduction for another property in accordance with 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 May 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, an application is made to distribute the deduction between the owners. It specifies who will receive the deduction and in what proportion. The mortgage interest deduction is distributed according to this application. It is impossible to issue a basic deduction of 50% to 50%, and a deduction for mortgage interest to receive 100% to 0%, for example.
If the property was acquired in joint ownership after January 1, 2014, then at the first submission of the 3-NDFL declaration to the tax office, an application is made to distribute the deduction between the owners. It specifies who will receive the deduction and in what proportion. The mortgage interest deduction can be distributed annually on additional statement. For example, issue a basic deduction of 50% to 50%, and receive a deduction on mortgage interest of 100% to 0% in the first year, and the next year in a different proportion.
According to Letter dated 01.10.2014 No. 03-04-05/49106
Mortgage deduction for 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. It makes no sense to declare a deduction for mortgage interest earlier.
When registering shared ownership, it must be taken into account that the mortgage deduction is distributed according to the share indicated in the certificate of ownership. It is impossible to issue in a different proportion, and it does not matter who is the borrower, who is the co-borrower.
All citizens of the Russian Federation who have taken out a bank loan for an apartment can receive a tax deduction for mortgage interest when buying real estate for the entire period during which the mortgage tax was paid. To receive the accrued amount, you must submit documents to the tax office. Legislation allows the receipt of part of the funds if the transaction was executed in any state bank RF.
What is a mortgage interest deduction?
The borrower has the right to return the funds 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 the tax is charged. Tax deduction Mortgage interest is cash that reduces the amount of income on which taxes are levied. The purchase of real estate (an apartment or a plot) using a mortgage loan and the payment of money on it is one of the cases that gives the right to a property deduction from interest on a mortgage loan.
Base deduction
Citizens who have issued a mortgage when buying an apartment have the right to apply for a refund of interest. The return procedure takes place in accordance with subparagraph three of paragraph one of Article tax code Russian Federation, which regulates the tax reporting period and list required documents. Return of interest - under subparagraph four. The right to registration is valid if there is a certificate of acquisition of housing. Maximum size, which may have a property mortgage interest deduction - two million rubles.
Mortgage interest deduction
A citizen who bought a property with a mortgage is obliged to pay, in addition to the principal debt for the apartment, a certain amount every month to the bank. For 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 ninety thousand rubles. This feature applies to loans issued after 2014. A citizen can receive a mortgage interest deduction once in a lifetime.
Payment of interest paid to the bank can be made at any time and for any period of payment of a mortgage loan for housing. Funds can be obtained through the employer or the tax office. The choice of the method of receipt depends on the urgency of the payment and the amount (some employers have the right to withhold a percentage for the provision of intermediary services).
Who is supposed to
The tax inspectorate compensates the money paid by the citizen to the bank by deducting the interest on the mortgage. It is not necessary to make a deduction for mortgage interest immediately as housing compensation. If the home was purchased with a mortgage and the citizen has already taken advantage of the purchase cost deduction, the return Money can be done later. Compensation for the deduction of mortgage interest is due to all citizens of the Russian Federation who work officially during the entire period of debt repayment.
Where to apply for a tax deduction
You can apply to a citizen for a mortgage interest deduction at the following organizations:
- public services portal;
- tax office at the place of residence;
- any multifunctional center (MFC).
Federal Tax Service at the place of residence
The tax office at the place of residence carries out any operations related to payments tax interest. The number and address of your Federal Tax Service can be found on the public services portal by entering the registration address and TIN number (taxpayer identification number). At the place of residence, 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
The multifunctional center (MFC) is engaged in processing tax payments for mortgage loans. To receive a payment, you must fill out a declaration in accordance with the 3-NDFL form, after the end of the year in which payments began to be made. Multifunctional centers are not territorially tied to citizens, and those who wish to receive interest payments can apply to any of them located on the territory of the Russian Federation.
Public Services Portal
You can get a deduction on mortgage interest by submitting an application through the official portal of public services. For this operation, it is necessary to register in the system, indicate the data (series, number, registration) of the passport of a citizen of the Russian Federation, SNILS and other documents. After the administration has verified the accuracy of the data, the user will be able to submit an electronic package of documents for the return of mortgage interest. In addition, on the portal you can find out how to get money from mortgage interest in other organizations.
How to return mortgage interest through tax
In order to return the amount of interest through the tax office, you must submit the appropriate package of documents there. 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 submission of documents. The term for repayment of funds depends on the bank in which the mortgage is issued, the amount of money, and how to get a deduction from mortgage interest (in cash or to a bank account).
Submission of an application of the established form
To process the payment at the tax office, you need to go to the terminal electronic queue select the item "fines, penalties, deductions". An 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 in it, it is transferred to the tax officer, and the applicant has a certified copy in his hands.
The application is considered within ten working days. After consideration of the application, a notification of a positive or negative decision will be sent to the citizen at the registration address indicated in the application in the form of a letter or in the form of a text, voice message to a contact phone. In case of a positive decision, it will be necessary to convey the rest of the package of documents.
Documents for receiving a deduction
To receive the amount of money, you must submit the following documents:
- statement;
- certificate from the bank where the mortgage loan was received;
- certificate from the place of work;
- documents confirming the right to housing;
- tax return(Form 3-NDFL);
- passport (original and copies);
- additional documents, indicating shared ownership, such as a marriage certificate (if necessary).
Receiving funds to the account
In order to receive a payment, the application must indicate the full details of the account to which the tax authority will have to transfer the funds. Refunds can be made in the following ways:
- withdraw cash from the bank;
- to a bank account;
- to a debit or credit card account.
Mortgage interest tax refund through employer
Mortgage interest reimbursement Housing loan and the main debt the state can carry out not only through the tax authority (with the calculation of the final annual amount), but also through the employer. It uses the annual payment method. To use this scheme, you need to do the following:
- Order in advance from the tax office a certificate (3-NDFL) on the right to compensation and payment of mortgages.
- Submit a certificate to the accountant at the place of work.
- Receive a one-time payment in the accounting department within three months from the date of submission of documents.
When can I get a tax deduction
Cash for mortgage interest can be received at any time, but not earlier than one 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 term, but for one or two years of the time of payment of the mortgage loan.
Limitation period
The return of funds in the form of a tax deduction is not limited by the statute of limitations, according to the laws of the Russian Federation. A citizen has the right to receive a tax deduction until it is fully applied. Besides, sum of money can be paid for any taxable period. However, the homeowner can only exercise the right to a deduction in the amount that was valid when the rights to this payment arose.
How is mortgage interest deduction calculated?
The amount of the deduction reduces the so-called taxable amount from which the citizen was withheld income tax. The recipient can recover in the form of refunded taxes 13% of the amount of the deduction for the reporting period. The amount can 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 refundable can refund up to 13% of the amount paid, i.e. if, for example, 100 rubles were paid, the compensation will be 13.
Distribution of tax reimbursement when applying for a mortgage by spouses
In case of joint ownership of the purchased property by husband and wife (shared property), the main deduction (for real estate and for the payment of interest) is distributed in accordance with the size of the share of each of the owners. The owner has no right to provide his share of the amount of the compensation deduction to another right holder. For registration of the deduction upon purchase, accrued interest on a loan for an apartment in a mortgage is available for each of them. If the husband or wife has already received reimbursement from tax service for an apartment, another shareholder can receive only half of the deduction.
Return of personal income tax when refinancing a mortgage loan
A citizen who bought a home with a mortgage and applied to another bank for a one-time mortgage refinancing, thereby actually reducing the basic cost of paying interest to the bank, can also apply for interest reimbursement according to the first and second agreements. At the same time, the documentation must indicate that the loan was issued for the purpose of refinancing the previous target loan.
With personal life insurance
A mortgage loan in most banks implies that a citizen will insure his health and life. Over the life of a mortgage loan, a large amount of money accumulates. Since 2016, Russia has been allowed to return personal income tax when personal insurance life, but there are several requirements for the insurance contract:
- life insurance period of 5 years;
- the insurance policy for the mortgage loan is paid by the borrower;
- the borrower is a citizen of the Russian Federation;
- the citizen conscientiously paid taxes from the salary.
Who is not entitled to a personal income tax return on mortgage interest
They can refuse to provide benefits in the form of a refund of part of the tax payments for mortgage interest if the borrower indicated in the application information that does not correspond to reality, or submitted an incomplete package of documents required for registration to the authority. At the same time, the tax refund is provided after the submission of all documents and the indication of the correct data. A complete refusal of the Federal Tax Service Inspectorate to provide a mortgage deduction on interest occurs under the following circumstances:
- people working unofficially, i.e. without concluding an employment contract with an employer;
- persons engaged in commercial activities and those who work on the patent system taxation;
- citizens who have become the legal owners of housing purchased by third parties;
- persons who have previously applied for a mortgage deduction for the same object;
- interdependent citizens (acquisition of apartments or other housing from relatives).
Video
A tax (mortgage) deduction is a kind of property deduction and is a kind of monetary compensation for the funds spent on the purchase of housing. The scheme is simple: you buy an apartment with a mortgage, the state returns part of the money invested to you. How much you will be refunded 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 on legislative level(Tax Code, art. 220, p. 2.). When calculating the amount, the value of the property and the interest paid are taken into account. The Tax Inspectorate collects documents and considers issues.
Recent changes in legislative framework were introduced on January 1, 2014. Citizens were allowed to exercise the right several times in their lives (according to the norms of 2008, this could only be done once).
When buying an apartment, house, land, you can return part of the money, but not all citizens have such a right. The first requirement is that you have taxable earned income. As an employee, you do not get all the wages. 13% of the fee goes to the state treasury in the form 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 need to 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% overall size interest on a mortgage, and only interest that is actually paid and debited from the payer's account is taken into account.
Who has the right to deduct
The first candidates for compensation are taxpayers receiving “ white salary". If only part of the income is taxed, and the second half is handed out and not recorded anywhere, then only official wages will be taken into account when calculating the amount. When a client works at several enterprises at once, the total income is taken into account. Plus other types cash receipts, for example, received from the rental of housing or commercial real estate, from the sale of shares, other securities.
If a woman bought an apartment while on maternity leave, she can apply for 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 before maternity leave the woman did not work for long and the income is not enough to cover the amount of the deduction, she will receive the remaining money after she starts working.
In some cases, the requirements of the Tax Code apply to foreign citizens. In order for a citizen of a foreign state to be able to partially compensate for the costs of buying real estate in Russia on a mortgage, he must live 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 properties are subject to the Tax Code
A property deduction is due in the following cases:
- Buying a room country house, apartments - all or a share;
- Construction of facilities;
- Purchase land plot and a residential building located on its territory, including one under construction;
- Payment of interest used to repay targeted (mortgage) loans issued for the purchase or construction of the above facilities;
- Repair, finishing living quarters if they were purchased from the developer in a draft version;
- Development of the project, estimates;
- Laying of engineering communications.
Payments are not made if:
- An apartment or other property was purchased from a relative (meaning interdependent persons e.g. spouses, children, parents, etc.);
- The object was purchased from an employer, colleague, etc.;
- The person is registered in tax authority as individual entrepreneur and pay taxes on special treatment taxation (simplification, imputation, 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;
- Submission of documents to the tax authority;
- Checking the provided certificates and transferring money.
The tax inspector is given:
- Passport (according to the law, another identity card is possible);
- Application for a deduction;
- Declaration (3-NDFL);
- Certificates, commodity documents confirming the amount of expenses and the fact of their commission;
- Certificate of paid income taxes (2-NDFL);
- Certificate of registration of ownership;
- mortgage agreement.
Based on the received documents, the payment amount is calculated. The law establishes limit limit for reimbursement of interest paid on a mortgage loan. The amount should not exceed 3 million rubles. There are no restrictions on interest on mortgage agreements concluded before January 2014. Information on the amount of paid interest must be submitted to the tax office at the end of a specific reporting period (usually at the beginning of each new year). 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 issue compensation on time, you can do it at any time - the law does not establish time limits on this. If this year you did not receive the full amount of the deduction, the balance is carried over 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 issued after the entry into force of the new rules (later 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 purchasing an apartment on a mortgage, the taxpayer-individual receives the right to a property tax deduction. We will tell you about the procedure for applying the property deduction for a mortgage in our consultation.
Who is eligible for a mortgage property tax deduction and how much?
When we talk about mortgage deductions, we mean:
- a deduction in the amount of actual expenses for the acquisition of an apartment in the territory of the Russian Federation (clause 3, clause 1, article 220 of the Tax Code of the Russian Federation);
- deduction in the amount of actual expenses for repayment of interest on a mortgage loan taken for the purchase of an apartment (clause 4, clause 1, article 220 of the Tax Code of the Russian Federation).
The right to a property deduction for a mortgage 2017-2018 has an individual whose income is taxed at a rate of 13% and who acquires an apartment in his own ownership (including joint, shared) or in the ownership of his children under 18 years of age (clause 1, 6 article 220 of the Tax Code of the Russian Federation). At the same time, speaking of a 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 (HQS) 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 HQS property deduction 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 an organization (to dividends), as well as in the form of winnings received by participants in gambling and lottery participants (clause 3 of article 210 of the Tax Code of the Russian Federation).
The property deduction for a mortgage is due in the following amount (paragraphs 3, 4 of article 220 of the Tax Code of the Russian Federation):
Type of property deduction | The amount of the deduction, rub. |
---|---|
the cost of buying an apartment | 2 000 000 |
mortgage interest expense | 3 000 000 |
It is important to remember that if the 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 mortgage interest provided for only one property (clause 8 of article 220 of the Tax Code of the Russian Federation, Letters of the Ministry of Finance dated 08.21.2013 No. 03-04-05 / 34150, dated 08.14.2013 No. 03-04-08 / 32992).
Of course, for a particular calendar year, an individual has the right to receive a property deduction only within the limits of taxable income. Say, in 2017, an apartment was bought for 8,000,000 rubles (excluding interest), and the taxable income at a rate of 13%, which can be reduced for deduction, amounted to 720,000 rubles for the same year. Then the property deduction for the year will not be provided in the maximum deduction amount, but in the amount of 720,000 rubles. Consequently, personal income tax to be returned will be 93,600 rubles (720,000 rubles * 13%). The balance of the deduction in the amount of 1,280,000 rubles (2,000,000 rubles - 720,000 rubles) can be carried over to the following years.
And even when the deduction for the cost of purchasing an apartment is used, the interest deduction can continue to be claimed annually, based on the amount of interest actually paid on the mortgage and until the amount of interest paid exceeds 3,000,000 rubles.
Whom should I contact for a mortgage deduction?
An individual taxpayer can apply for a property deduction for an apartment (paragraphs 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 within a year, but with prior receipt from the tax office of the Notification of the right to deduction in the form approved by the Order of the Federal Tax Service dated 14.01.2015 No. ММВ-7-11 / [email protected]
Documents for obtaining a property deduction on 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 (when buying a "secondary property") or an agreement on participation in shared construction and deed of transfer or other document on the transfer of the object shared construction by the developer and its acceptance by a participant in 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 purchase an apartment in the ownership of their children under the age of 18;
- documents confirming the expenses incurred by the taxpayer (receipts for credit orders, bank statements on the transfer of funds from the buyer's account to the seller's account and other documents);
- bank certificate on the interest paid on the mortgage;
- certificate 2-NDFL;
The same documents will need to be submitted to the tax office in order to receive a Notification of the right to a deduction when subsequently applying for it to the employer.
But when an individual already applies to the employer to receive a property deduction for a mortgage, the documents will be as follows:
- Notice issued by the tax office;
Mortgage refinancing and property tax deduction
Getting a property deduction when refinancing a mortgage tax legislation not prohibited. This means that regardless of the number of mortgage loan refinancing, the taxpayer retains the right to a property deduction. The main thing at the same time is that the mortgage nature of the relationship is clearly traced in the contract for refinancing the mortgage or the subsequent refinancing of the refinanced mortgage. That is, refinancing agreements should contain references to the original mortgage loan, as well as loans provided earlier in order to refinance it (
Of all credit banking products, mortgages are the most onerous and lengthy. But sometimes it is such a loan that allows citizens to fulfill their dream of purchasing their own home. In this article, we'll show you how to recover interest on a mortgage to buy real estate using a tax deduction.
According to Russian legislation, a citizen can recover part of the funds paid for taxes or reduce the tax itself when buying a home on credit. This deduction option is called property deduction and was created for the purpose of social assistance to citizens who purchase housing with their own money.
The law on the return of part of the amount due to the tax deduction is regulated by Chapter 23 of the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation), and various legal acts correcting the registration procedure.
According to the law, every citizen who has an official income that is taxed at a rate of 13% and pays taxes on this income monthly is entitled to social compensation in the form of a 13% refund. It should be understood that part of the amount paid for the loan is returned not by the bank itself, but by the state.
This deduction is called a property deduction, it is regulated by Article 220 of the Tax Code of the Russian Federation and applies to acquired real estate. At the same time, it does not matter whether the purchase of a house/apartment was paid by a citizen immediately from his own funds or issued through a targeted bank loan.
Why exactly 13% is returned from the loan amount?
The thing is, that's how much they pay. individuals, according to paragraph 1 of Art. 224 of the Tax Code of the Russian Federation, from all income. At the same time, the tax is levied not only on the official salary, but also on any other documented source. It could be rent for land, for a garage or a room in a communal apartment, as well as taxable income from the sale of any real estate. By submitting an annual declaration to the fiscal service, citizens are required to contribute all their income received in the territory of the state. It is from the total income that the percentage is calculated.
At the same time, a citizen has two options for returning his money lost to pay personal income tax:
- basic property, that is, aimed directly at the acquisition of housing;
- reduction of expenses on mortgage interest (interest actually paid).
What is the difference between these two types?
The fact is that citizens who do not purchase housing with a mortgage can 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 purchase of housing.
The right to receive a return is a document confirming the right of ownership, a contract of sale. At mortgage lending, the tax deduction allows you to reduce the financial burden of interest and, thus, reduce the amount of the monthly payment.
The main condition for such a return is the execution of a targeted loan. That is, in a situation of a cash loan without indicating the main purpose, a citizen cannot count on a mortgage tax deduction.
Thus, the property deduction can be issued as total amount purchases, as well as on 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 applicant's income, and the date of ownership of the home.
Reimbursement 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 refund of interest. The terms of the Tax Code of the Russian Federation are quite loyal and do not oblige the borrower to immediately collect all documents when applying for a mortgage.
The client has at least three years to apply to the fiscal service for a mortgage deduction. The total calculation of the deduction is formed from the moment the mortgage agreement is signed.
The procedure for applying for a tax deduction contains a lot of nuances that you need to know before applying.
Basic moments:
- When choosing the main property deduction, the payment can be received several times, for several housing objects, 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). If the client chooses an interest deduction, this service can be used only once.
- Only a resident of the country can claim 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 are taken into account if the client submits an application within this time after signing the contract. In the event that the amount of paid personal income tax turns out to be less than the estimated deduction, then it will be transferred to the borrower's account on an annual basis until it reaches the maximum established limit.
- In the event of a refund of tax on mortgage interest, a limit of 390 thousand rubles or 13% of maximum amount 3 million rubles. This is the amount of interest on the loan. In addition to paying the principal debt (loan body), the borrower also pays monthly interest. So, fiscal compensation allows you to return the amount of 13% of the interest actually paid. This is the rule, i.e. the limit of 3 million rubles applies only to mortgage loans issued after the changes made in 2014. The repayment of mortgage loans purchased before 01/01/2014 has no limit, i.е. 13% is refunded on 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 official income taxed at a rate of 13%.
- The deduction can only be made on housing purchased in the country.
- The refund will not be made if the tax office finds out that the sale and purchase transaction took place between close relatives.
- The amount of the annual refund is limited to taxes paid (cannot be more than the amount paid taxes).
- Deadline limitation period there is no fiscal compensation, however, the calculation will be made on the date when the transaction was concluded and, accordingly, the current tariffs of that period were applied.
- When applying for a property deduction for housing purchased with a mortgage before 2008, the cost limit will be 1 million rubles. Registration of purchase and sale 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 count on a partial refund of the paid funds. However, the contract must be formalized as a target. Otherwise, the taxpayer will be denied compensation.
For borrowers who have signed mortgage agreement after January 1, 2014, the amount of the deduction is limited to 3 million rubles.
Thus, when submitting an application and pre-calculating the amount of compensation, it is important to take into account the date of the transaction.
The calculation scheme is quite simple. A citizen who has issued a mortgage is exempt from income tax. In this case, such a refund can be made only for the interest actually paid.
The borrower can determine the amount of the return on his own. To do this, two factors must be taken into account:
- the total amount of real estate;
- the total tax paid.
The amount of real estate is specified in the contract. At the same time, the law provides for the inclusion in the total cost of finishing works, if this is included in the contract. In the case of buying a home in a new building, often a total amount is paid into 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 final amount.
Given the different maximum rates for calculating the mortgage deduction, let's look at concrete examples what you can count on.
Example #1
You took out a mortgage worth 50 million rubles in the summer of 2013 (i.e. before the entry into force of the new rules on January 1, 2014). For the entire period of using the loan, interest payments amounted to 6 million rubles. In this case, you can claim a tax refund in the amount of 1.040 million rubles (2,000,000*13% +6,000,000*13%).
If exactly this situation had occurred after January 1, 2014, then the deduction would have amounted to 650 thousand rubles (2,000,000*13% +3,000,000*13%).
Example #2
Citizen N. took out a mortgage for building a house in the amount of 3.5 million rubles. According to the established limits, only 2 million rubles are to be deducted. Thus, the calculation will be made as follows:
2 million * 13% = 260 thousand rubles (this is the amount of compensation for a mortgage loan).
Who is eligible for compensation?
According to the Tax Code of the Russian Federation, the following are entitled to fiscal property compensation:
The right to compensation can be exercised at the local fiscal office or through the employer through which income tax is deducted.
Who is not entitled to such compensation?
- unemployed citizens of the country.
- Retirees who do not pay 13% tax from other sources of income.
- Working people, but at the same time receiving unofficial salaries "in envelopes".
- People who have carried out a sale and purchase transaction between relatives.
- Entrepreneurs operating under a special simplified scheme.
As mentioned above, the Tax Code of the Russian Federation provides for several options for deductions, one of which is property. There are also social and professional ones. When applying for other types of deductions (for education, treatment), only the amount of tax paid will be a barrier.
Return of personal income tax from mortgage interest: determine the amount
The exact amount of compensation will be determined by specialists after the approval of the application and verification of all documents. For each citizen, it will be different depending on:
- housing costs;
- date of conclusion of the transaction;
- the amount of interest paid.
In case of compensation from mortgage interest, from the total amount of interest already paid, the specialist calculates 13% and makes a refund to the current account
Citizen N. issued a mortgage for a period of 20 years at 15% per annum, purchasing an apartment worth 1,900,000 rubles.
1.9 million * 15% = 285 thousand rubles (interest for the year)
285 thousand rubles * 13% = 37,050 rubles (this is the amount that will be returned in a year).
It is important to understand that when calculating the amount of compensation, experts 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 extend to subsequent years until the funds are fully used.
If a situation arises that it is necessary to return compensation for several years at once, then the application procedure will be identical. If you first learned that you can get back part of the money spent on housing on credit, then this does not mean at all that time has been lost.
Here it is important to determine the fact of deduction of personal income tax at the time of the transaction. If you had official employment and regularly deducted income tax, then you can write an application to the fiscal service for a refund for several years at once, but not more than for the previous 3 years
Where to apply?
To exercise the right to a refund of a partial amount for a paid mortgage, you can choose one of three ways:
- Visit the tax office at the place of registration in person.
- Fill out the online form on the Portal of State Services of the Russian Federation.
- Apply through the multifunctional center.
You can find out the number and address of the fiscal service in your city through the public services portal. To do this, you must 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 apply together in the completed declaration form will be available only after the administration has verified the accuracy of the entered data.
The multifunctional center is not geographically tied 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 of mortgage funds.
What documents need to be collected?
To minimize the waiting time for a refund application and quickly arrange the service, we suggest that you familiarize yourself with the package of documents required for a tax deduction:
- personal documents of the taxpayer (passport and TIN);
- contract for the sale of property;
- a document confirming the ownership of real estate;
- declaration();
- mortgage payment receipts and a certificate of current debt;
- certificate in the form 2-NDFL (original);
- application for a refund;
- payment schedule for the loan (in the form of an annex to the agreement);
- certificate from the bank with the account number for crediting.
As can be seen 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 home.
Not even official work is important here, but the monthly payment of income tax in the amount 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.
If the apartment is in equity participation both spouses, the original and a copy of the Marriage Certificate must be submitted to the tax office.
If a citizen claims a tax deduction for several years at once, but cannot submit payment documents for a loan, the tax authority is allowed to accept bank statement upon payment.
The amount of fiscal compensation is determined by the tax service employees after checking the documents and confirming payment of personal income tax. After the application is approved, the money will be transferred to the taxpayer's account. This can legally take up to 90 business days.
In addition to the standard list of documents, tax officials may require additional paperwork. Suppose, during the action loan agreement The 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 the bank account, through the cashier or to the card.
Return procedure: step by step instructions
So, in order to return your legal 13% paid to the state treasury in the form of income tax, you need to follow these steps.
Table 1. Step-by-step instruction refund
Step | Description |
---|---|
Step #1. Collection of documents required for compensation | At the end of the reporting period, it is necessary to collect a complete package of documents and contact the fiscal service at the place of residence. It is not necessary to attend in person for this. Today you can apply online. |
Step #2. Filling out the declaration in the form 3-NDFL. | This document must include: The declaration can be filled out on the official website of the National Assembly of the Russian Federation by registering and logging into your personal account. |
Step #3. Submission of an application, documents and declaration to the fiscal authority. | When sending an application for social compensation by mail, it is necessary to make an inventory of all documents in the letter. It is also necessary to request written confirmation of receipt of the letter and a package of all documents. The taxpayer must take into account that the declaration indicates the total income from which the income was paid. |
Step number 4. Verification of documents by the service and, upon positive consideration, a refund of tax to the current account. | Along with the documents, the applicant submits a certificate indicating the current bank account for crediting funds. |
We return the property deduction through the employer
If the refund is made through the employer, then the taxpayer's salary will be automatically increased by the amount of the deduction due until the money is fully calculated.
To select this option, follow these steps:
- Contact the local tax office and take a notice of permission to pay personal income tax on account of property acquisition.
- Give the employer an application from the National Assembly.
In order for the tax inspectorate to “approve” this option for issuing a deduction, you must provide the following package of documents:
- personal data;
- application for fiscal compensation;
- contract of sale;
- loan agreement;
- certificate from the place of work, certified by the accounting department.
From the moment the application is submitted to the employer, the withholding of income tax is automatically terminated from the employee's salary until the property deduction is fully calculated.
After the end of the reimbursement, personal income tax automatically begins to accrue on wages. An application for a property deduction from the employer, as well as a notification of the existence of such a right in the tax office, must be taken annually.