Do I need to pay tax when buying an apartment?
Taxes on the acquisition of real estate. Photo No. 1
According to tax legislation, all persons receiving income must pay income tax (NDFL). When purchasing a home, a person does not receive money, but actually loses it. Therefore, he has no profit or income, and therefore no need to pay personal income tax.
According to the logic of the legislator, a person buys an apartment with legally earned money. This means that personal income tax has already been withheld from the funds he earned. And Russian laws prohibit double taxation. Therefore, it is the seller’s responsibility to pay the required thirteen percent to the state.
However, after purchasing an apartment, its new owner not only receives rights, but also must bear the burden of maintaining it. Therefore, you will have to pay the state a certain amount for the existing property.
On the other hand, having spent money on the purchase of a long-awaited apartment, you can exercise your right to receive a tax deduction. In essence, this is a refund of part of the personal income tax paid earlier. Accordingly, those who have official earnings from which deductions of the specified tax were made can count on it. However, the deduction must be submitted to the tax office by submitting all documents confirming the expenses. She will not calculate and reimburse you the deduction on her own.
Thus, when purchasing an apartment, buyers do not need to pay personal income tax. Moreover, they can return part of the tax previously paid if certain conditions are met. However, everyone must pay taxes to the state annually to own real estate.
Features of paying tax on a purchased apartment
Let’s find out from the beginning when buying an apartment what taxes they pay. From the moment registration is completed, owners pay property tax, calculated in the form of withholding on the basis of clause 3 of Article 408 of the Tax Code of the Russian Federation.
To register it, you do not need to contact the Federal Tax Service department - the information will be transferred to the tax authorities from the cadastral chamber.
For a newly purchased home
You should also find out what tax you need to pay when buying an apartment if less than a year has passed since the conclusion of the transaction.
As a rule, transactions are completed within a year, which means that the first tax year after purchasing an apartment is incomplete. In this case, tax inspectors do not take into account that part of the calendar year that passed before the transaction was completed .
Let's summarize : if you just bought an apartment, do you need to pay tax? The tax is accrued only for the period that has passed, starting from the day of receipt of the contract certified by Rosreestr - until December 31 of the current year.
In what cases is property tax not paid?
Although everyone must pay taxes, the law provides for some exceptions. This list is directly prescribed by Article 407 of the Tax Code of the Russian Federation and cannot be arbitrarily supplemented. The benefit may be provided, inter alia, to the following persons:
- disabled people of the first, second groups, as well as childhood;
- Heroes of the USSR and the Russian Federation;
- participants in hostilities;
- pensioners;
- military personnel.
In addition, this benefit can be provided only in relation to one piece of real estate, with the exception of unfinished construction and complexes. Real estate that is used by an entrepreneur to carry out his activities is also not covered.
In order to take advantage of the benefit, you must submit a corresponding application to the tax office before November 1 of the current year. In this case, it is necessary to indicate in relation to which object it is provided. Otherwise, the tax inspectors themselves will do it. If there are several owners, then the tax amount is divided between them. For minor property owners, parents or other representatives are required to pay.
Is it possible to reduce property taxes?
In what cases can the tax on a purchased apartment be reduced? Photo No. 3
Many people dream of finding a way to reduce the amount of tax they owe. However, the law does not provide any grounds for reducing it.
At the same time, in legal practice you can find advice from experienced lawyers on how to minimize your costs. One of them is to register real estate in the name of several persons.
With joint ownership, the costs of maintaining the property are also distributed among the co-owners. Another opportunity to reduce the amount of tax is to challenge the cadastral value established for a real estate property. This can be done for the following reasons:
- due to an error in calculations;
- due to its excess of the market price of the property.
Errors mean not only incorrect arithmetically calculations, but also a false assessment of the characteristics of an object and other conditions affecting its value. You can make such a statement to a special commission under Rosreestr, or through the court.
Considering the specifics of the problem, in such cases it is better to use the help of a lawyer. A qualified specialist will help you understand the situation, offer the best solution to the problem, prepare legally competent documents and correctly substantiate your client’s position.
About tax deductions
Tax deductions. Photo No. 4
When purchasing housing or other real estate, the buyer not only does not pay personal income tax, but can also return part of the funds spent on it. At the same time, you can receive a refund of part of the personal income tax not only for one property.
Persons with official earnings can count on receiving a property tax deduction in the amount of thirteen percent. However, this requires compliance with a number of conditions.
Firstly, you can only return what was paid. That is, persons whose income was used to make contributions to the budget are entitled to receive deductions. Unemployed people, entrepreneurs, and citizens who retired more than three years ago do not have this right.
Secondly, no matter what money the apartment was purchased for, a refund can be obtained in an amount not exceeding two million rubles. In this case, it does not matter whether the payment is made in cash or borrowed funds (mortgage). However, when making payments using certificates or maternity capital funds, no refund is made.
In fact, the maximum deduction amount will be two hundred and sixty thousand rubles (13% of 2 million rubles). At the same time, it will not be returned at once, but in the amount in which personal income tax was paid this year. If we imagine that the buyer’s refund amount was one hundred thousand, and the deductions amounted to only fifty thousand, then the remainder will be transferred to the next year.
Previously, this right could only be used once. Since 2014, the situation has changed as follows. You can receive deductions more than once, but within the above maximum amount. You should know that when concluding a transaction with relatives and other dependent persons, their payment is not due.
What tax do you need to pay?
Let's consider whether the former owners need to pay taxes and to what extent. Sellers will be required to pay income taxes when selling real estate. In Russia it is provided in the amount of 13% of income received. But there are exceptions to this rule. If the seller owns the property for a long time, the state will exempt him from having to pay personal income tax when selling it.
What tax do you need to pay?
The seller owns the apartment for less than 3 years
If the seller owned the apartment for less than three years before the sale, he will have to pay income tax in full. An exception is the cost of an apartment is less than 1 million rubles.
The seller has owned the apartment for more than 3 years
If a person owned an apartment for more than three years before the sale, but acquired it before January 2021, he will not have to pay tax. If the seller became the owner of the property after the specified period, he will be exempt from paying tax only if he sells the property that has been his property for more than 5 years.
Taxes after purchasing an apartment
After the purchase and sale agreement is executed, the buyer becomes the owner and has obligations to pay property taxes. In 2021, the procedure for collecting it is as follows. The owner is charged 0.1% of the cadastral value of the property. Plus, in each region, local authorities have the right to increase the amount. But no more than 0.2%. But they can also cancel it completely on the basis of local regulations.
To calculate the tax base, the occupied area and type of property are taken into account. If the owner owns a room from the total area, 10 square meters are subtracted. m., if the apartment is 20 sq. m., and if the house is 30 sq. m.
A deduction upon purchase allows you to reduce the tax base by 2 million rubles. when drawing up a simple purchase and sale agreement. And reduce it by 3 million rubles if the buyer purchased an apartment with a mortgage.
When purchasing an apartment from close relatives, no deduction is provided.
Help from a lawyer
Legal assistance. Photo No. 5
It is quite difficult for ordinary citizens and other persons incompetent in this area to understand tax issues.
There are many subtleties in tax legislation, ignorance of which can lead to adverse consequences. To ensure that the tax office does not refuse to return part of the personal income tax paid, it is important to correctly draw up all the documents and follow the procedure.
An experienced lawyer or advocate, having assessed the situation, can give oral or written advice, help in preparing documents, and obtaining the necessary certificates.
The biggest problem for many is filling out tax returns. But for a qualified, experienced lawyer this is not very difficult. In addition, he can provide services for submitting a declaration and the entire package of documents to the tax office.
For more information about the list of documents for tax refund when purchasing an apartment, watch the video:
See also Phone numbers for consultation 08 Dec 2021 kasjanenko 1257
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Discussion: 3 comments
- Albina says:
08/18/2019 at 18:51When purchasing 1 apartment, I received a personal income tax refund on the apartment amount of 200,000 rubles. This refund does not amount to 2,000,000 rubles. When purchasing 2 apartments, can I increase the personal income tax amount to 2,000,000 rubles?
Answer
- Irina says:
05/15/2020 at 00:39
When buying an apartment for our daughter, we did not pay any tax, but the seller had to pay sales tax. He, in turn, bought it himself and then sold it within one year, and as far as I know, he had to pay tax on the difference between two prices, and he sold us an apartment 150 thousand more expensive, because he renovated it and bought a clean one finishing. It turns out that he had to pay tax on these 150 thousand.
Answer
- Elena says:
10.24.2020 at 11:41
Hello, I haven’t worked for half a year at the moment, I’m buying an apartment, can I get a tax deduction back?
Answer
Legislative acts
Before you find out who pays the tax when buying and selling an apartment, you should know a little about the legislative framework on which this procedure is based.
The purchase of an apartment is considered in a number of sources of legislation, including:
- Article 210, 220, 222 of the Tax Code of the Russian Federation;
- Letter from the Ministry of Finance dated December 11, 2014, No. 03-04-05/63812;
- Federal Law No. 212-FZ, dated July 23, 2012
However, there is no direct indication of whether the buyer pays tax when purchasing an apartment. At the same time , from the provisions of the legislation presented above, we can identify specific points in which it is necessary to pay tax when purchasing an apartment .
