The tax return of a property deduction to a Russian payer of taxes when buying an apartment, a house or realizing the construction of residential real estate is an urgent issue concerning almost every citizen planning to buy or build a residential property.  

Process of tax return 

The state has established the amount of personal income tax refund for property deduction in the amount of up to 260,000 rubles, not counting the tax refunds of income tax on mortgage interest that is paid on the acquisition of housing on credit. Despite the clear legislative regulation of the procedure for granting and receiving property deductions to residential property buyers, as well as the maximum clarity of regulatory requirements in the area of ​​repayment of personal income tax paid, the process of processing a refund often causes certain difficulties and questions for citizens.  

Income tax is legal literacy 

The main thing that is necessary forquick tax refunds of income tax is legal literacy and compliance with important requirements of tax legislation. In this case, the procedure for the tax refunds of personal income tax will not cause any difficulties. The property tax deduction available to Russian citizens when buying a home is the amount by which the payer of personal income tax is entitled, according to the Russian Tax Code, to reduce his income that is taxable. See more.

Who is entitled to receive a property deduction?  

The tax residents of the Russian Federation have the right to refund the income tax payable during the construction and purchase of housing. The legislator referred to them persons who live in the Russian territory for at least 183 days (in a row) in a year, having an official income and transferring personal income tax to the budget. One of the main rules for calculating a property deduction is that the amount of money tax return should not exceed the amount actually paid by the employer (or by the taxpayer himself) for the reporting period.  

Citizens cannot count on tax deductions for the purchase of housing 

Accordingly, the following categories of citizens cannot count on tax deductions for the purchase of housing: non-residents of the Russian Federation; non-working students and pensioners; Unemployed persons who receive unemployment benefits; women on maternity leave (for the period when they did not work and, accordingly, did not deduct the income tax to the budget); military personnel; orphans who have not reached the age of 24 and are receiving state benefits; Citizens who work without formal employment; other citizens who do not pay personal income tax, regardless of the fact of employment and the amount of unofficial wages.  

Individual taxpayers who apply various taxation systems (simplified, patent or imputed) for calculating with the budget cannot rely on tax refunds if they have no other income from which the 13% tax is transferred. 

When cannot I get a property tax deduction?  

Taxpayers wishing to receive a personal income tax refund can be refused in the following cases: When the parties in the agreement on the sale of housing are close relatives; when the transaction for the acquisition of residential real estate was made at the expense of the employer. In addition, you cannot receive a personal income tax return for the amount listed in the home purchase transaction through a CMC certificate, government subsidy or military mortgage. The remaining amounts paid independently by the taxpayer in excess of the amount of state financial support can be presented when calculating the property deduction. other details here :