When calculating the tax on the sale of an apartment in 2018, the cadastral value, the name of the title document, and the right to receive tax benefits are taken into account. The tax is also influenced by the period during which the object is owned
By law, any income must be taxed. But with regard to real estate, there are tax breaks determined by how the seller got the property, how many years he owned it. When buying an apartment, the buyer is not subject to tax. Such a person, subject to the availability of an official place of work, can receive a tax deduction.
Changes in legislation
The main changes took place in 2016, when new deadlines were established. Citizens who acquired real estate as an inheritance, under an annuity agreement, or as a gift from a close relative may not pay tax if the sale took place three years later.
If the object was purchased, then this period of time is 5 years. At the same time, the old law applies to apartments purchased before January 2016, that is, the ownership period must be sick for three years.
The initial point of the specified period is the day when the property passed to the new owner, that is, on the date of registration of ownership, if we are talking about a housing construction cooperative - on the date of payment of the last installment or upon signing the act of acceptance and transfer of real estate.
Tax calculation
The basis for calculating personal income tax is recognized as income that was received as a result of the sale of an object. The standard rate is 13% of the transaction amount. The tax on the sale of a privatized apartment is calculated according to the general algorithm. The minimum period of ownership is taken into account.
To determine the exact amount of tax, you need information about:
- the real cost of the apartment specified in the contract;
- cadastral value.
Provided documents of title and forms confirming the seller's expenses for the purchase of the property.
To determine the cadastral value, data are taken as of January 1, 2018. You can get information on the Rosreestr website. The resulting number is multiplied by 07 (coefficient). The indicated amount is compared to the one indicated in the sales contract. The larger of the two is used to calculate the tax base.
Next, the amount of the deduction is determined to reduce the tax base. Purchase costs are deducted from the purchase price. The amount must be confirmed by checks, statements, receipts. You can also reduce the amount of money spent on repairs and the purchase of finishing materials.
If there are no documents confirming the purchase of real estate or in a situation where the housing was received free of charge, a fixed deduction equal to 1 million rubles is taken into account.
In conclusion, we note: for calculations, you can use various online calculators or contact the tax office for advice. In the latter case, a 3-NDFL declaration, a passport, papers confirming the fact of the sale of an apartment and other documents giving the right to receive a tax deduction are provided.
