How To Get Money Back For A Mortgage

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How To Get Money Back For A Mortgage
How To Get Money Back For A Mortgage

Video: How To Get Money Back For A Mortgage

Video: How To Get Money Back For A Mortgage
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Mortgage is taking out a loan secured by the purchased real estate. Once in a lifetime, you can return 13% (income tax) of the value of the purchased residential house or apartment, and if the property was purchased using a mortgage, you can return 13% from the interest paid to the bank for using credit funds.

How to get money back for a mortgage
How to get money back for a mortgage

Instructions

Step 1

Remember that the law provides for a tax deduction for the purchase of housing. You can use it only once in a lifetime. The maximum amount that you can receive is 260 thousand rubles, i.e. 13% of 2 million rubles. There is no tax deduction above this amount. However, there is no such limitation on the interest paid to the bank. You can get income tax refund on any amount of interest paid.

Step 2

In order to get your money back when buying a home, contact the tax office of your place of residence. You will need to collect a package of documents, including:

- passport;

- certificate of ownership of the acquired housing;

- contract of sale;

- loan agreement or mortgage agreement;

- bank statement on the calculation of the interest paid for the tax period (year);

- checks, receipts for the payment of the loan;

- a certificate from the place of work about withholding income tax.

Step 3

Based on the above documents, fill out the declaration in the form of 3-NDFL. In addition, you will need to write an application for a tax deduction and indicate the bank account number for the transfer of funds.

Step 4

Be prepared to consider your documents within 3 months, this is the period provided by law. You may be denied a refund of income tax paid in several cases:

- if the apartment was purchased at the expense of the employer or the budget of any level;

- if the transaction was made between close relatives;

- if there is a fictitious sale and purchase transaction.

Step 5

Do not forget that you will have to apply for an income tax refund annually while you repay the loan and until you return 13% of the purchase price. It is necessary to fill out a tax return after the tax period, i.e. early next year.

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