Property deduction when building a house. Tax deduction for property tax. What expenses can be included in the deduction?

Surely many citizens of our country are interested in this question: is it possible to get a tax deduction when building a residential building?

What legislation governs this issue? What documents are needed to obtain it?

Do I need to confirm financial expenses and how? What is the procedure for receiving a deduction?

Let's look at these questions in more detail.

Legislative regulation

Every citizen of the Russian Federation can receive this type of deduction when constructing a residential building in such situations:

in case of construction of a residential building. In accordance with current legislation, this type of deduction is due in the process of constructing a residential building with the further right to register citizens in it. If the house was built without the possibility of registering citizens in it, it will be impossible to obtain a deduction;
An unfinished residential building was purchased and subsequently its completion was completed. In this case, it is necessary to understand that this house must be registered under a purchase and sale agreement as an object that is directly unfinished. Otherwise, citizens can only rely on deductions directly for financial expenses, but not for construction expenses.

In addition to these main legislative acts, there are additional bills that only complement them.

It is also worth noting that the issue of obtaining a tax deduction is clearly stated in such legislative norms:

Article No. 220 of the Tax Code of the Russian Federation, which provides for the possibility of obtaining this deduction;
Federal Law No. 212, which regulates the procedure for obtaining this type of deduction;
Letter of the Ministry of Finance No. 03-04, which clearly regulates the issue of obtaining a tax deduction for both the spouse and the spouse.

At the same time, we take into account the fact that, according to the current legislation of the Russian Federation, those citizens who began building their houses in 2014 have the right to return again.

To whom and when is it due?

According to Article No. 220 of the Tax Code of the Russian Federation, the right to a tax deduction can arise only in cases where ownership of the constructed residential building has already been registered.

Moreover, you can receive a tax deduction only at the end of the year in which the right to register it and further receive it directly arose.

If, for example, the right to receive a tax deduction arose in 2018, you can only receive it in 2019. It will simply be impossible to get it before this year.

Let's consider a simple situation. Alekseev A.A began construction of a residential building in 2014. In 2017, he finally completed this construction, and already in 2018 he received ownership rights to it, as well as a certificate of state registration of rights to this type of real estate.

For this reason, already in January 2019 Alekseev A.A. has every reason to apply for a tax deduction for the construction of a residential building.

It is also necessary to pay attention to the fact that it is not at all necessary to submit documents after the registration process of a residential building. The right to a tax deduction itself does not have a statute of limitations, but there is a small nuance: the tax can be returned exclusively for the last 3 years, prior to when the relevant documents will be submitted.

List of expenses

According to Art. No. 220 of the Tax Code of the Russian Federation, when registering a property deduction it can be included costs incurred by the applicant for:

At the same time, all expenses must be confirmed in documentary form, otherwise it will simply be impossible to receive a deduction.

What not to include

According to the same legislation, deduction impossible to turn on the following list of costs:

redevelopment of a residential building;
which were directly for the reconstruction of a residential building;
for installation of plumbing fixtures, shower cabins and other equipment;
for the construction of additional buildings in addition to the residential building itself. These may include baths, outbuildings, and so on.

Package of necessary documents

In order to be eligible to receive a tax deduction, you must prepare list of such documentation:

fill out and submit a declaration in form 3-NDFL;
original and copy of the certificate of registration of ownership of the house;
copies of all documents that can confirm the costs of building a house;
application for a tax refund;
documents that can confirm the fact of tax payment. This document is a certificate in form 2-NDFL;
original and copy of the applicant's passport.

It is also worth paying attention to the fact that as supporting documents on the issue of costs, the following may be advocated:

for an individual - a copy of the agreement, a copy of receipts, and so on (checks can be provided);
for legal entities - copies of agreements with construction companies, copies of payments, and so on.

In the event that citizens plan to receive a tax deduction on interest, it is also necessary to collect and attach a list of such additional documentation:

a copy of the loan agreement. Upon request, the original itself can be provided;
a certificate confirming the deduction of interest on the loan.

Registration procedure

In order to be able to receive this deduction you can contact:

For the first option, it is enough just to wait until the end of the tax period, but for the second case there is no need to do this.

After this, the applicant for the deduction must contact the tax office at his place of residence and submit a corresponding application. It must be remembered that its sample can be taken directly from the tax service and compiled under the close supervision of their employees in order to avoid errors.

In addition to the copies of the documents themselves, it is also necessary to present their originals for comparison. A month after submitting the application, you should contact the tax office again, receive a notification and take it to the accounting department at your place of official employment.

In this case, it is necessary to take into account the fact that the taxpayer has the right to choose method of obtaining this deduction at your discretion, namely:

receive a refund annually directly from the fiscal service. With this method, the tax office checks financial costs and charges payments;
or receive a monthly deduction directly from your employer. With this method, an employee of an enterprise has the right to receive a deduction only if his annual income is significantly lower than the deduction entitled to him.

Dimensions

If we talk directly about the tax deduction that can be obtained for the construction or completion of a residential building, it is carried out in a standard manner, as for other types of property deduction.

It is necessary to take into account the fact that according to the current legislation, 13% of the total amount of financial costs can be returned as a tax deduction. There is a small nuance to this. It lies in the fact that the tax deduction cannot exceed 2 million rubles. In simple words, the amount can be calculated as follows: 2 million * 13% = 260,000 thousand rubles.

Moreover, every year, every citizen of the Russian Federation has the right to return an amount that does not exceed that transferred to the income tax budget. But this also takes into account the fact that the balance of the deduction can be carried forward to the next year until the entire amount to the recipient is repaid in full.

If citizens took out a mortgage loan for the construction of a residential building, then they have every right to receive a tax deduction directly on the interest paid.

Features of obtaining funds for unfinished construction of a house

First of all, it is necessary to pay attention to the fact that according to the current legislation of the Russian Federation, citizens do not have the right to receive a tax deduction for a house whose construction has not yet been completed.

Thus, until the applicant for this deduction has a certificate of ownership of the residential building in hand, he has no rights to apply for this type of deduction.

In simple terms, until the house is fully put into operation, it is not possible to return personal income tax on it.

In the event that the construction was not completed, but all the documents are already in hand, then a personal income tax refund is possible.

As you can see, there are no particular difficulties in returning the deduction. All you need to do is know and follow the rules provided by law.

The receipt of this deduction is described in the following video:

A property deduction for the construction of a house is a benefit expressed in the return of part of the funds spent on the purchase of land for individual housing construction, the construction of a new house on it, or the completion of an existing one (if the plot was purchased unfinished).

You can include in the deduction not only the cost of the land plot and building materials, but also the costs of developing design and estimate documentation, installing and connecting communications to the house. The total amount of expenses that can be claimed for refund is no more than 2 million rubles. for one owner, respectively, the maximum amount of funds that can be received in hand is 260,000 rubles.

More details about the conditions for receipt, application and features of this type of deduction are provided later in the article.

Conditions for receiving a deduction

Citizens have the right to deduct individual housing construction:

Those living in Russia for more than 183 days in a year for which a deduction is claimed (tax residency).

To receive benefits, it does not matter whether you have Russian citizenship.

Those who received income in the year for which the deduction is claimed are subject to personal income tax at a rate of 13%.

The following are not entitled to this benefit: unemployed citizens, individual entrepreneurs under special tax regimes, women on maternity leave and pensioners (except in the case of ).

Those who built a house and bought land with their own funds.

Construction of a house or acquisition of a plot of land at the expense of government funds and benefits (for example, maternity capital), as well as with funds from the employer, deprives a citizen of the right to this benefit, since he did not incur the real costs of purchasing land and building a house on it.

If the construction was partially paid for using maternity capital, then a deduction will be provided for the part of own costs (minus maternity capital).

Those who purchased land from other than related parties.

If the land plot for construction was a spouse, children, parents, brothers and sisters, as well as guardians and trustees, whom the Tax Code recognizes, the benefit will be denied.

Please note that until 2012, the circle of interdependent persons was wider and included all close relatives with whom the citizen was in a marriage relationship, relationship of kinship and property.

Who can't get a deduction?

The following citizens are not entitled to receive a deduction for the construction of a residential building:

Previously received a property deduction when purchasing an apartment or building a house.
Those who bought land and built a house on it at the expense of the state or employer.
Those who bought land from close relatives.
Those living in the Russian Federation for less than 183 days in the year for which the deduction is claimed.
Having no income subject to income tax at a rate of 13% in the year for which this benefit is claimed.

When does the right to deduct for individual housing construction arise?

The right to receive a deduction when purchasing land arises only after registration of ownership of a house built or purchased together with a land plot.

It is impossible to receive a deduction before this time. It is also impossible to receive a deduction only for a land plot, without a house built on it.

What costs can be reimbursed as part of the deduction for individual housing construction?

To purchase land for individual housing construction or land with an unfinished house on it.
For the purchase of construction and finishing materials.
For work on construction, repair and finishing of a house.
For the development of design and estimate documentation.
For laying communications, bringing gas and water supplies to the house, connecting to electrical networks.

Note: it will not be possible to include in the deduction the costs of installing plumbing, purchasing furniture and interior items, landscape design, building other buildings on the site (bathhouse, garage, shed, greenhouse, etc.), as well as remodeling an already built house.

The amount of deduction for individual housing construction in 2018

The amount of deduction for house construction costs in 2018 is:

2,000,000 rub.- for the costs of purchasing land, constructing a residential building on it, conducting communications, etc.
3,000,000 rub.- for the cost of repaying mortgage interest, if the house was built with loan funds.
Full cost to pay off mortgage interest if the house was built before 2014.

Please note that the citizen will not receive the entire deduction amount of 2,000,000 rubles, but only 13% of this amount, that is, no more than 260,000 rubles. (2,000,000 x 13%).

A similar rule applies to the return of mortgage interest expenses.

An example of calculating deductions for individual housing construction

In January 2015, Trofimov A.V. bought a plot of land for individual housing construction. In 2.5 years, he built a residential building (cottage) on the site and registered ownership of it in December 2017.

Trofimov will be able to start receiving the deduction in 2018. He will only be able to claim benefits for 2017.

For 2015 - in which the land was purchased, and for 2016 - while construction was underway, he will not be able to receive a deduction, since ownership was registered only at the end of 2017.

The total cost of purchasing a rental property and building a cottage amounted to 7,000,000 rubles.

Trofimov’s salary for 2017 is 1,920,000 rubles. RUB, including personal income tax - 249,600 RUB.

The amount of expenses that Trofimov has the right to claim as a deduction is 2,000,000 rubles. of which he will receive in his hands as a whole 260,000 rub.:

2,000,000 x 13%

Since the personal income tax paid for 2017 does not allow one-time receipt of the entire deduction amount, Trofimov will be able to reimburse expenses in the amount RUB 249,600

Remaining deduction in total 10,400 rub. will move to 2018.

Features of receiving a deduction

There is no statute of limitations for receiving this type of deduction.

A tax deduction for the construction of housing can be obtained at any time, regardless of the number of years that have passed since its construction and registration of its ownership.

In this case, you can apply for a refund with no more benefit than. For example, a house was built and registered as a property in 2014. In 2018, you can only get a deduction for 2017, 2016 and 2015.

One-time benefit

You can only receive a deduction once in your life. His repeated statement is impossible, for.

Transfer of deduction balance

If the house was built and registered as a property after 2014, the shortfall in the deduction must be transferred to another property.

If the house was built and the rights to it were registered before 2014, transfer the remainder of the benefit to another property will not work, it will burn.

Note: The remaining mortgage interest deduction is not transferable to other properties and is only available for one property.

Most taxpayers are aware that they have the right to claim a tax deduction when purchasing an apartment or residential building. But not everyone has information about the possibility of receiving a personal income tax refund when building a cottage. The procedure for reimbursement of costs for the construction of a residential building has its own characteristics. This article will discuss how to process a personal income tax refund when building a private house.

Conditions under which a personal income tax refund can be issued during the construction of a private house

A tax deduction is a type of compensation provided by the state in accordance with the provisions of tax legislation. The return of personal income tax after the purchase or construction of residential premises is called a property deduction.

To avoid problems in the future with the return of personal income tax on expenses incurred during the construction of a private residential building, you need to take care of some things even before the construction of the building. The amount of the tax deduction will be proportional to the amount of costs. The conditions for providing a property tax deduction are as follows:

Expenses for the purchase of building materials and payment for the work of the construction team must be documented.
The maximum amount of tax compensation is 13% of the amount of 2 million rubles, that is, 260 thousand rubles. But if the construction cost less, then only the amount of expenses actually incurred is subject to reimbursement.
The amount of the tax deduction cannot exceed the amount of tax deductions (personal income tax at a rate of 13%) for the last year.
You can submit an application for a property tax deduction at any time after the right to it arises (after issuing a certificate of ownership of the house), if the documents are submitted to the accounting department at the place of work, and only for the next year (tax period), if the application is written in branch of the Federal Tax Service.
A tax resident of the Russian Federation (a citizen of Russia or a foreigner and stateless person who has resided in the country for at least 183 days during the previous 6 months and paid personal income tax) can apply for a tax deduction.
If a second house is subsequently built, the tax deduction will not be provided again.
If a house was built with money received under a targeted loan, the funds can be returned through a tax deduction. If it’s a consumer loan, then no.
If an unfinished house is being purchased, the purchase and sale agreement must indicate the acquisition of an unfinished building. Otherwise, you cannot claim a deduction.
If a plot of land was specifically purchased for the construction of a house, you can apply for a tax deduction by receiving certificates of ownership of the plot and cottage.

In what time frame can a personal income tax refund be issued for the construction of a private house?

If the amount of income tax paid by the taxpayer for the year is not enough to receive a property deduction in full, it is allowed to submit the application again next year and receive additional compensation.

A taxpayer can apply for a personal income tax deduction at any time as soon as he has the right to reimbursement of his expenses. The law does not limit a person in time. The time frame for receiving funds after filing an application depends on where the taxpayer applied:

when contacting an employer personal income tax returns are made throughout the year (or less, depending on the cost of construction) in the form of exemption from personal income tax deductions from wages;
when contacting the Federal Tax Service You will have to wait about six months for the transfer of funds, but compensation will be transferred to your account in one payment.

What documents will be needed to process a personal income tax refund when building a private house?

Before contacting the tax service for a property tax deduction (or for a certificate of notification of the rights to a deduction, which must be obtained for the employer), you must take care of preparing the following papers:

applications for registration of property deduction ();
applications for refund of overpaid tax;
Russian Federation passport (for Russian citizens) or an identity card of a foreign citizen (passport, temporary residence permit, residence permit - for foreigners who are tax residents of the Russian Federation);
declaration 3-NDFL;
a certificate in form 2-NDFL about income (from the place of work);
bank account details;
contract for the purchase and sale of land for individual housing construction;
certificates of completed work from the construction team (including work on the construction of the building, installation of communications, completion, repair and finishing, drawing up an estimate/project);
payment documents, checks, receipts for payment for construction materials.

Legislative acts on the topic

Common mistakes

Error: A citizen who is unofficially employed and whose employer does not make tax deductions from his employee’s salary applies to the tax service to apply for a property deduction.

From this article you will learn about tax deduction for building a house, what documents are needed, and who is entitled to this benefit.

The return of money for building a house through the tax office is called a tax deduction. This is money that the taxpayer has the right to receive back based on an application to the tax office at the place of residence, if there is a legal basis for the deduction.

First of all, it is important to clarify that the right to a tax deduction is acquired only by taxpayers and only once in their lifetime. If a citizen pays personal income tax (Article 220 of the Tax Code of the Russian Federation), then he has the right to tax deductions; if he does not pay personal income tax, he does not have such a right. Refunds are made only from those amounts of taxes that the taxpayer has already paid. For example, if you have the right to a deduction, but taxes have not yet been paid, then there is nothing to return from yet.

They will return 13% of the construction cost if this cost does not exceed 2 million rubles. Thus, the largest deduction amount is 260 thousand rubles. Amendments to the Tax Code of the Russian Federation adopted in 2014 gave the right to exhaust this limit to the end. For example, a house was built at a cost of 1 million rubles. The citizen received a deduction in the amount of 130 thousand rubles. The remaining 130 thousand rubles. he will be able to receive it later when grounds for this arise.

Who is entitled to a tax deduction for the construction of a residential building?

The owner of the site where the house is being built.
His husband.
His parents, since we are talking about a minor.

If a house is built by a minor or his parents, then it is the parents (guardians) who will receive the tax deduction, but only if these persons have not previously exercised the right to receive a deduction or have not exhausted their limit.

Documents are submitted to the tax office to obtain a deduction when:

A residential building is being built for personal use.
The mortgage issued for the construction of a private house is extinguished.
An old loan issued for housing construction is refinanced.

What construction costs are eligible for reimbursement?

To obtain a tax deduction for the construction of private housing, the taxpayer will need to submit a construction estimate to the Federal Tax Service. It is important to take into account the fact that the application is submitted to the tax office only after registration of ownership of the constructed house in the Registration Chamber of Rosreestr.

Costs for the following types of work and purchase of materials will be approved for refund:

Payment for the project (under agreement with the design organization).
Purchase of building materials.
Purchase of unfinished construction.
Payment of workers at a construction site.
Laying utilities to the house.

Will not be included in the estimate costs such as the purchase of household appliances, plumbing, and remodeling work, since this is not included in the house construction estimate and is not an integral part of it. There will also be no offsets for expenses such as:

Paid by the taxpayer's employer or other person.
Paid from maternity capital or other government subsidies.
Relating to transactions with related parties.

Limitation periods

According to current legislation, there is no statute of limitations for submitting an application for a tax deduction to the Federal Tax Service. This also applies to the construction of a private house for personal needs. But it is important for the taxpayer to keep in mind two important payment principles:

Since already paid taxes are subject to the general limitation period for the Civil Code of the Russian Federation (3 years), it is possible to return amounts from taxes paid only for the last 3 years. The balance will be paid to the taxpayer in subsequent periods.
If in the last 3 years the taxpayer has not been officially employed anywhere or paid income tax, then he should wait for official employment so that there is a basis for a refund of the taxes paid.

Based on these two principles, the refund will be made in 2016 for 2012-2014, but only if all this time the taxpayer was officially employed and paid personal income tax to the state.

When will they pay?

The Federal Tax Service accepts the taxpayer’s application and a package of accompanying documentation and considers it office-wise within 2-3 months. But if there are errors in the documents or the absence of any necessary information, the verification may take a longer period. To avoid delaying this process, you should carefully prepare the following documents:

Extracts from the Unified State Register of Ownership of land and houses.
All payment documents confirming construction costs incurred by the taxpayer: acts, contracts, orders, checks, receipts, etc.
Declarations on forms 2 and 3 of personal income tax.
Statement.

If the audit confirms the completeness and sufficiency of the information provided by the taxpayer, then the payment of the tax deduction for the construction of the house will be made to the bank account specified by him within 6-12 months.

Since January 2016, the mechanism for receiving during the construction of a house has undergone major changes.

Current legal provisions

Since January 2016, you can specify any price for a house. However, there are pitfalls here too. When indicating the price of a house, you should not deliberately overestimate or underestimate it, as this may lead to adverse consequences in the form of legal measures from government authorities. If the price is underestimated, then, based on the product by a coefficient of 0.7, the Federal Tax Service can independently charge additional personal income tax.

If the cadastral value of the house has not been determined by January 1 of the year in which government authorities officially formalized the transfer of ownership, will not be taken into account.

Normative base

Tax Code of the Russian Federation, part two, chapter 23.
Letters from the Ministry of Finance of the Russian Federation on tax deductions (No. 03-04-05/20406, 03-04-05/21195, 03-04-05/22395, 03-04-05/23340, 03-04-05/40681).

Who can get a deduction

The following persons can apply for a tax deduction:

Owner. It is important to know that if the house has several owners, the amount must be divided between them in proportion to their shares.
Owner's husband or wife.
Parents of a minor child, if the house or plot of land is registered in his name.

House construction costs

They include:

costs for preparing documentation for a construction project or estimates;
purchase of construction and finishing items;
purchase of an unfinished construction project with a view to completing it in the future;
payment for work or services provided in connection with the construction of a house, completion of an unfinished construction project or finishing work (this may include the purchase of necessary materials, payment of workers);
installation of sewerage, water supply, gas pipes.

It is important to know that if previously a person applied for a deduction in one tax period, and then began repairs or additions and subsequently applied for a deduction for repairs, he was refused. This problem was solved thanks to the judges of the Supreme Court of the Russian Federation. According to a review of judicial practice on tax issues, Chapter 23 of the Tax Code of the Russian Federation, this practice violates the rights of citizens to receive deductions.

Therefore, applying in subsequent tax periods for a deduction when carrying out finishing work in the house will not be considered repeated, and the deduction must be provided. It is possible to calmly complete the construction of your home over any convenient period of time. You just need to indicate the new expenses in the declaration.

Return procedure

Must be filled out. If it states an amount that needs to be refunded, you will need to fill out a refund application due to construction costs.
You will need to provide a 2-NDFL certificate. If you are employed, you can contact the employer's accounting department. If you are an individual entrepreneur, you will need to fill it out yourself. This document indicates the amount of all income and taxes paid.
Be sure to make copies of all supporting documents.
Make copies of payment documents.
Give copies of documents to the Federal Tax Service. Take the original documents with you; the tax office may require them.

Deadlines

It’s very convenient that now There are no restrictions on the period for receiving a deduction.

For construction and finishing work over several years, deductions can only be received for expenses incurred over the past three years.

In the year of filing your application, you are required to be officially registered in the workplace and pay taxes.

Documentation

It is required to provide a 2-NDFL certificate and a 3-NDFL declaration.

About the ownership of the house:

certificate of state registration of ownership of a house and a plot of land (if it was purchased for the construction of a house);
loan, mortgage or credit agreement;
repayment and payment schedule.

Payment:

checks;
receipts for receipt orders;
acts confirming the purchase of building materials from citizens (valid when passport data is indicated in them);
bank statements;
extract from the citizen’s personal account;
certificates from the bank about the percentage paid.

If the house was purchased by spouses:

a copy of the marriage certificate;
a written agreement on the division of deductions between husband and wife.

If you decide not to wait until the tax period ends and receive the deduction earlier, then provide the employer with the following documents:

statement;
copies of documents on the right to deduction.

Where to contact

You can contact to the tax office or to your employer. In the first case, you need to wait until the end of the tax period, in the second, this is not required. When contacting your employer, provide him with the documents specified in the previous section. Then contact the tax office and submit an application for a deduction and copies of supporting documents.

Be sure to take the originals with you. After a month, pick up the notice from the tax office, and then submit it to your employer’s accounting department.

For pensioners

It often happens that a citizen built a house, but retired before receiving the deduction. It is important to remember that if during the three tax periods before retirement you worked under a formal employment contract and paid taxes regularly, your right is valid.

If you continue to work after retirement, find another job, receive income from renting out any property, or have another official source of taxable income, the right to deduction is not limited to three years.

If construction is on a summer cottage

The deduction applies to the house itself and to the plot of land.
In the documents, an existing house should not be indicated as a garden, country house or non-residential building.

Construction on credit

You can get a loan from a bank to build a house. In this case, the list of required documentation only expands.

Situations

Is it possible to include in the deduction amount the owner’s expenses for finishing work for the house if they were incurred by him after the registration and issuance of a certificate of ownership?

Yes, if the owner has documents confirming that finishing work on this house has not been carried out previously.

Can a woman on maternity leave claim a deduction?

If a woman incurred expenses before maternity leave, she can receive a deduction without going to work. This issue has long remained controversial in the practice of tax authorities. Deductions are provided for each month, including months in which there was no income.

Can a man claim a deduction for his wife if the house is registered in her name and she is on maternity leave?

Yes, since property acquired during marriage is the common property of the spouses.

Does a pensioner have the right to claim payment of a deduction in the current year if he received it earlier for another object?

It can’t, because he had already exercised his right before. There are no grounds for receiving a home deduction here.

Expert consultation

In the video below, Stanislav Dzhaarbekov, an expert in the field of taxation, explains the procedure for obtaining a tax deduction when purchasing or constructing housing.