Return of personal income tax when buying an apartment and property sales tax

The tax system of Russia provides for the payment of many different taxes, it is sometimes very difficult to sort out which ones. For example, in everyday life there is often confusion between the concepts of property tax and deduction, deduction and reimbursement, the return of personal income tax when buying an apartment and deducting from the sale.

Property taxes and property deductions

It is necessary to determine that the property tax is the amount that citizens are required to contribute to the budget annually (for property in the property) or at a time (when selling an apartment). The rates of the annual tax are established by local authorities. Tax on the sale of apartments is calculated and paid at a rate of 13% of the cost of housing.

Property deduction is a privilege granted when making real estate transactions. It consists in the fact that the tax base for physical persons is reduced by a certain amount. However, the deductions from the purchase and from the sale are two different in the result of the action.

Deduction from sale

In the case of the sale of real estate, which is owned by less than three years, the seller generates income, 13% from which he is obliged to pay to the treasury. However, any citizen has the right to reduce the tax by 260 thousand rubles or in the amount of 13% of the expenses incurred earlier for the purchase of housing. In other words, he can use the property deduction from the sale in the amount of 2,000 thousand rubles, or in the amount previously spent on the purchase of the apartment.

Thus, the deduction from sales allows you to reduce the tax or reset it. The right to deduct from the sale of individuals can use every transaction with the apartment.

Deduction from purchase

First of all, let us repeat that there is no need to pay any tax on the purchase of an apartment to individuals , since in Russia the duty to pay personal income tax arises only in connection with the receipt of income. Moreover, even the filing of a declaration in the case of the purchase of an apartment is a matter of voluntary, we will return, the right of a citizen. However, it is worth using, because in this case the state can provide a benefit in the form of reimbursement of a portion of the personal income tax paid or the cancellation of the payment of personal income tax at the place of work.

As far as the refund is concerned, the tax must be paid before. Here, the restriction comes into effect: only those citizens who receive income taxable at a thirteen percent rate and receive a corresponding tax from them during the year preceding the purchase can receive a personal income tax refund when buying an apartment. Thus, people living on state benefits and pensions are not entitled to compensation: women who are on maternity leave and parental leave, people with disabilities and other categories of citizens. According to the adopted law No. 330-FZ, pensioners who bought an apartment can expect to postpone the period of personal income tax payable for accounting, but not for more than three periods. To put it more simply, pensioners will be able to receive a refund of personal income tax when buying an apartment if they have purchased an apartment no later than three years from retirement.

The amount of tax to be returned is limited - it is possible to refund from the budget no more than 260 thousand rubles. It turns out, and here the limit of deduction is 2 million rubles. It is possible to refund personal income tax in two ways: in the form of a one-time tax refund paid to the budget in the previous period of the apartment purchase, or in the form of monthly zeroing of personal income tax at the place of work. If the tax paid or accrued for the year is not enough to cover the refund, the remaining amounts are transferred to the return for the next year. The only exception is pensioners: if the personal income tax that they paid for three years prior to the acquisition is not enough to cover this amount, the unused balance will simply "burn down".

Thus, the deduction from the purchase of an apartment allows the buyer to recover a portion of the money paid for real estate. The right to refund personal income tax when buying an apartment arises from a citizen only once in a lifetime.

As you can see, property tax, property deduction from purchase or sale - three completely different concepts, each of which defines for the taxpayer various duties and rights, setting the size of either paying money to the budget, or returning them to the taxpayer.