Tax refund when buying an apartment in 2020
In accordance with Art. 224 of the Tax Code, income from the sale of housing is taxed. To stimulate the real estate market, the state has provided incentives to reduce the tax base. Not only sellers, but also buyers are entitled to a tax refund when buying / selling an apartment in 2020, despite the fact that the latter do not pay it when making a transaction.
Real estate sellers
The tax on the sale of apartments in 2020 will not increase - the calculations are carried out according to the rules edited in 2018 (No. 424-ФЗ dated November 27, 2018). The minimum period of ownership of property, beyond which the seller has the right not to pay personal income tax for the transaction, has been increased to 5 years. For special cases, it remains the same (3 years) - detailed information on this issue is set out in Art. 217.1 of the Tax Code.
If the property is owned for less than 3 or 5 years, residents are required to pay 13% of the income received. Non-residents have similar rights / obligations (but the percentage is higher - it is 30%).
If the seller does not actually receive profit, then he is exempt from personal income tax (clause 5 No. 63-FZ of 04/15/2019). The tax on the apartment sold in 2020 is calculated taking into account the cadastral value of the object (the reduction coefficient is 0.7, from January 1, 2020 some changes will occur - they are set out in No. 63-FZ of 04/15/2019). If the property is acquired after 01/01/2016, then either the amount specified in the purchase / sale agreement or the cadastral value is taken into account (the highest price is selected).
When selling a home with a profit for himself, the seller is obliged to replenish the state budget, but at the same time he receives the right to partially recover the costs (Article 220 of the Tax Code of the Russian Federation). Subtracted from profit (optional):
- 1 million rubles;
- the cost of housing at which it was acquired by the seller.
Interest is paid on the remaining amount.
Real Estate Buyers
Home buyers do not replenish the state treasury because they do not make a profit - on the contrary, they spend their money on improving housing conditions. They also have a tax deduction, but it looks a bit different. An individual receives benefits when paying personal income tax on salary or other income. Size depends on the method of purchase:
- upon purchase of housing on the secondary market or during construction - 2 million rubles. (savings of 13% of this amount - 260 thousand rubles.);
- if real estate is purchased on credit - 2 million rubles. (personal income tax compensation) and 3 million rubles. (repayment of interest on a bank loan) - the savings will amount to 650 thousand rubles. (260 thousand rubles + 390 thousand rubles).
If the buyer’s expenses are less than 2 million, then he does not fully use the privilege provided by the state. The tax deduction is provided for the amount spent (it includes the cost of not only housing, but also repair work, if the need for their implementation is documented). In 2020, the legislatively enshrined right to income tax return continues when another apartment is purchased. The exemption is calculated on the remaining unused amount (it is multiplied by 13% - the figure obtained is the savings in the payment of personal income tax). This does not apply to interest repayment benefits - it is granted 1 time.
What is the deadline for tax refund when buying an apartment in 2020? Compensation of personal income tax is carried out in two ways: the amount due is either not withheld from income for a certain period (up to the exhaustion of 260 thousand), or paid after a time. The right to receive benefits arises from the moment of:
- state registration of property (if housing is purchased in the secondary market);
- signing of the act (during the construction of the facility).
You can contact the territorial body of the Federal Tax Service with the onset of the next tax period after purchase (in the case of personal income tax, the tax period is 1 calendar year). It is acceptable to postpone the procedure, but it is worth considering - compensation is possible only for 3 years that have passed since the acquisition.
Who is eligible?
A prerequisite for tax refund when buying an apartment in 2020
is the receipt by an individual of the income from which personal income tax is paid (for example, salary or income from renting an apartment). But even being a law-abiding payer, you can find yourself outside the preferential program. Refusal of personal income tax compensation will be received if the housing:
- acquired from close relatives;
- upon purchase, the funds of the employer or maternity capital were involved.
To receive benefits, it is necessary to confirm the payment of taxes (form 2-NDFL), fill out and submit a declaration to the territorial body of the Federal Tax Service (form 3-NDFL). Refunds occur after the end of the tax period. The balance is carried forward to subsequent years.
You can act not on your own, but through the employer. The application is submitted to the accounting department of the enterprise immediately after the transaction is completed (no wait for the completion of the year). In addition to the application, you must provide a tax notice - it is issued in response to a written application (consideration period is 30 days).
Senior citizensIn 2020, tax refund for pensioners when buying an apartment will be carried out according to the previous rules. Both working (paying personal income tax) and non-working pensioners can receive a privilege. In the first case, the procedure does not differ from that described above.
If a person does not work after reaching a well-deserved rest, then personal income tax is returned for the previous 3 years (only those years are taken into account when the future pensioner still transferred interest from his salary to the state treasury). It is worth considering that the income can be not only official employment, but also other taxable profits (for example, from the sale of property).
Important! Pensioners are also entitled to benefits in case of purchase of housing on a mortgage.
The issues discussed do not apply to apartment tax - in 2020 it, as before, will be paid by individuals and legal entities that own capital construction projects.