Tax Deduction for Acquired Real Estate

Buying a house or apartment is not only a joyful event. With the acquisition of ownership of housing, its owner can rely on the possibility of using a tax deduction. The essence of this benefit is to reduce the taxable base with which income tax is withheld . The maximum amount of the tax deduction of 2 million rubles is valid today for real estate purchase agreements concluded after 01.01.2008. At the same time, this amount takes into account funds not only related to the acquisition of real estate, but also aimed at its initial improvement. If the purchase of housing is carried out in the primary market, the need for repairs must be documented.

Features of granting a tax deduction

First of all, you can use this privilege once, regardless of the number of purchased real estate. A tax deduction is granted only to adult owners who have a permanent source of income. If an apartment is purchased in the name of a pensioner, received as a gift, or a transaction was made between close relatives, it is impossible to take advantage of the tax deduction. This opportunity is not available to entrepreneurs, for whom real estate is a territory connected with the conduct of commercial activities.

An important point for obtaining a tax deduction is the absence of the fact of purchasing real estate from funds received from the budget (for example, maternity capital) or from third parties. But the owners who purchase real estate through the registration of a mortgage loan are given the opportunity to increase the amount of the established tax deduction. For this situation, the maximum amount of 2 million rubles does not include interest paid on the loan.

Procedure for registration of a tax deduction

To obtain a tax benefit to the owner of real estate, you need to decide where exactly he will exercise his right. If you independently apply to the tax inspection, the tax deduction is given in the form of a refund of the tax paid for the previous year. To do this, you will need to file a package of documents, which will be considered for 3 months. The appeal is made to the tax inspectorate of the area where the owner of the real estate is registered. Since there is no statutory limitation period for applying for a tax refund , you can do this at any time of the year following the year of purchase. At the same time, it is important not to forget about the timely filing of the income declaration.

For those who want to save time and energy, it makes sense to file a tax deduction through your employer. In this case, the remuneration will be paid without withholding the income tax until the taxable base amounts to the required amount. If the owner has several employers, it is logical to use the right to a tax deduction where the salary is maximum.