In order to stimulate citizens to improve their living conditions and to officially find employment, the legislation established a deduction for the purchase of an apartment or other housing. The meaning of the benefit is that the owner can return part of the funds spent on the purchase.
Who is entitled to a tax deduction when buying an apartment
The right to receive a property deduction arises when purchasing an apartment for your own money or in a mortgage, you can also include the cost of repairing an apartment if it was purchased from a developer with "bare walls".
Such a deduction can be used only once in a lifetime, and a person has the right to choose a property to receive benefits. The deduction amount has a limiting value, in 2014 it is 2 million rubles, that is, it will not be possible to return income tax from a larger amount.
Only the owner of the home has the right to receive such a subsidy from the state, provided that the payment for the apartment is made personally. The seller should not be associated with the buyer, the provision of a deduction for the purchase of housing from spouses, brothers, sisters, parents, employers and others is excluded.
All documents related to the property must be available and in perfect condition, as copies will be submitted to the tax office and carefully checked. If errors, blots, or inaccuracies are found, the deduction may be refused.
Documentation process
For those who qualify for this deduction, the following package of documents will be required to return the money. If the cost of the apartment is paid immediately, without credit funds:
- 3-NDFL declaration
- passport
- 2-NDFL certificate for the past year
- contract of sale of an apartment
- documents confirming the purchase of housing (payment orders, receipts)
- certificate of registration of property rights
- act of acceptance and transfer of the apartment
- INN
If the mortgage interest is returned, the following is additionally provided: a loan agreement, a certificate of interest paid for the year (you can take it from the servicing bank), payment documents for loan payments.
Refunds are made in two stages. The first is the preparation of a 3-NDFL declaration and supporting documents. A declaration is submitted to the tax office, copies of all the above documents are attached to it. The originals must also be kept with you for verification by the inspector. It is advisable to have two copies of the declaration, on the second one put a mark of acceptance and then keep it with you. The deadline for filing a declaration is once a year, until April 30. It will take three months to consider a request for a deduction and check the declaration, then the tax authorities will give an answer.
Second phase. If the deduction is approved, an application is written in the prescribed form and a copy of bank details is attached to it, to which the funds will later be transferred.
