Tax deduction when purchasing a plot of land in SNT: for the purchase of a summer house and land

Latest news and changes in this matter

A tax deduction in 2020 can be issued for not every plot of land.

To obtain a positive decision, the land must be intended for the construction of a residential building or house. At the same time, the presence of already built housing is not prohibited.

The maximum possible size in 2020:

If there was a purchase of a land plot and the subsequent construction of residential premises, then 2 million rubles;
In case of return of funds for mortgage lending - 3 million rubles.

In addition, you need to pay attention to the fact that for land acquired before 2014 (this also applies to mortgage payments), the amount of the tax deduction is not limited to the interest rate.

Goals

If you want to receive a tax deduction when purchasing a plot of land, then you need to know about some more nuances. The fact is that empty spaces vary, for example, some are intended for the construction of residential buildings, while others are exclusively garden areas. To receive a discount, it does not really matter for what purpose a particular piece of land is intended; it is important that there is a residential building on it. As mentioned above, you can only get a deduction if there was already a house on the land or you built it. For example:

You bought a plot of land along with a house for the amount of one and a half million rubles. According to Russian law, you can return 195 thousand rubles from this amount.
You purchased land and built a house on it. Construction cost you 4 million rubles. In this case, you can count on two hundred and sixty thousand rubles, since this amount is the upper limit.

You should not expect that you will buy a plot and will be able to submit documents for reimbursement of expenses. The state cannot help you here, since there are certain rules that must be followed. Purchasing a plot of land without a house is not a reason for an income tax refund.

Who can receive a tax refund and under what conditions?

The refund procedure involves the use of personal income tax; therefore, only a recipient of permanent income who officially pays income tax can apply for a deduction. An unemployed person, a person receiving income informally, an individual entrepreneur and a legal entity cannot count on these funds.

A tax deduction is available to working customers when the following conditions occur:

The location of the acquired property is a personal plot or land intended for summer cottage construction.
The country house is residential and the buyer has a share in the ownership.
Upon completion of individual construction on the land plot, the owner wishes to make compensation for the construction. But this is allowed only if the premises are designed as residential.

Nuances

You can apply for a tax refund only after you register ownership of the property. An option is allowed when the house has just been built. That is, you can buy an empty territory, build a private house there, and then return income taxes.

You cannot claim a tax deduction when purchasing a house with a plot in the same year that you purchased the land or completed construction. This can be done the following year, after purchasing the property. All these nuances are spelled out in Russian legislation.

Important! You can return income tax for the purchase of land only if you purchased it in 2010 or later. It was from this time that amendments to Russian legislation came into force. If the property was purchased a couple of years earlier, then the discounts apply only to the purchase of a house.

Rules for calculating the amount of deduction

You can only use the deduction once.

The maximum amount you can count on when buying a summer house is 2 million rubles . When returning funds, the tax rate is taken into account - 13%, that is, no more than 260,000 rubles.

A special procedure is provided for in the following situation: the taxpayer receives a loan and, therefore, pays interest to the bank. Compensation of bank interest occurs as a person pays off his loan obligations.

If a citizen applying for a deduction registered ownership of a land plot after 2014, then the legal limit will be 3 million rubles. from the amount of interest paid in accordance with the loan taken. Consequently, its size will increase to 5 million rubles.

A citizen will not be able to take advantage of this benefit if:

the development or purchase of the land plot was not made from his funds;
the land plot was acquired using maternity capital;
Only spouses, parents, children, etc. participated in the purchase and sale transaction.

Procedure for obtaining and list of required documents

If the newly minted owner of the land plot has already verified that he is entitled to a benefit, then he can begin collecting documents and sequentially performing the following actions :

Filling out a tax return in form 3-NDFL.
Ordering a 2-NDFL certificate from the accounting department at the place of official employment.
Production of several certified copies of identity documents (only basic information and registration are required).
Preparation of copies of documents confirming the fact of purchase and entry into ownership. If we are talking not only about a plot of land, but also about a house located on it, then you will also need a copy of the document on the ownership of the residential building.
Copying of each document evidencing the payment: payment order, receipt, receipt, check, etc.
If the person purchasing the land is married, then a copy of the document confirming this fact is required.
If the family has a minor child (or several), then you must also provide a copy of his birth document (in case of receiving a standard deduction).
Drawing up an application to the tax office containing a request for a deduction in accordance with the amount spent on the acquisition of the land plot. Here you should also provide information about your personal data, home address and place of actual residence (if they do not match), contract telephone number and Taxpayer Identification Number (TIN). In addition, you should indicate the address where the land plot is located and list all the documents attached to the application.

A married taxpayer may, at his discretion, indicate in the application that the deduction should be distributed between the spouses. This document is not included in the list of mandatory ones.

The place of submission of all the above documents is the tax office in accordance with registration.

After consideration, the specialist can satisfy or refuse the request, as well as reschedule the consideration, for example, due to incorrect data.

A refusal may also occur if a desk audit reveals the absence of the right to a deduction.

Income tax refund when purchasing land

Advice from lawyers:

1. Will it be possible to receive a refund of income tax when purchasing a land plot allocated for individual railways that is leased (assignment of rights)?

1.1. Dear Lyubov Dvadnenko, Kaliningrad! You will NOT be able to BUY a plot of land that is leased from its Tenant. And even if you somehow “agreed to buy” this lease from the Tenant, the tax office will NOT recognize this agreement for income tax refund. Good luck to you Vladimir Nikolaevich Ufa 01/08/2013 22:11 Moscow time.

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1.2. According to clause 2, part 1, art. 220 of the Tax Code of the Russian Federation, you may be provided with a personal income tax deduction in the amount of expenses actually incurred by the taxpayer for new construction or acquisition

on the territory of the Russian Federation, a residential building, apartment, room or share(s) in them,
land plots
provided for individual housing construction, and land plots on which the purchased residential buildings are located, or share(s) in them; In this case, acquisition means purchasing property, not renting. Therefore, a tax deduction CANNOT be provided for the amount you pay under the lease assignment agreement. Thus, this significantly reduces the value of such a transaction and may be an additional motive for, if not refusing the transaction, then at least bargaining.

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Consultation on your issue

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2. Can I get an income tax refund when purchasing land in 2020? Thank you.

2.1. Good afternoon You can. The amount of the deduction may be equal to the amount of expenses actually incurred by you on the acquisition, construction of real estate, on the purchase of building materials, on payment for construction work or services, on payment for connection to electricity, water, gas supply and sewerage networks. You can obtain deductions from the tax office at your place of residence or place of work; in this case, the employer will not withhold personal income tax from your salary. According to Letter of the Ministry of Finance of Russia dated March 26, 2014 N 03-04-07/13348, you can obtain it from several employers at the same time, regardless of the date the right to deductions arose. When purchasing a land plot for housing construction, the deduction can be obtained only after the house has been built and a certificate of ownership of it has been received (clause 2, clause 3, article 220 of the Tax Code of the Russian Federation). Documents to receive the deduction: passport, certificate of ownership, contract, certificate of your income in form 2-NDFL, tax return in form 3-NDFL at the end of the year.

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3. Can I get an income tax refund when purchasing land in 2020? Thank you.

3.1. Depending on what kind of land and whether you have used the deduction before. You can receive a property tax deduction in the amount of expenses actually incurred by you for the acquisition of land plots or a share (shares) in them on the territory of the Russian Federation provided for individual housing construction, and land plots or a share (shares) in them on which the purchased residential buildings are located or share(s) thereof; (subclause 3, clause 1, article 320 of the Tax Code) A property tax deduction is provided in the amount of expenses actually incurred by the taxpayer for new construction or the acquisition on the territory of the Russian Federation of one or more pieces of property specified in subclause 3 of clause 1 of this article, not exceeding 2,000 000 rubles. (Clause 3 of Article 220 of the Tax Code) When purchasing land plots or a share(s) in them provided for individual housing construction, a property tax deduction is provided after the taxpayer receives a certificate of ownership of a residential building; Repeated provision of tax deductions provided for in subparagraphs 3 of paragraph 1 of Art. 220 Tax Code is not allowed.

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4. Is an income tax refund due when purchasing a plot of land if the house was purchased with capital?

4.1. Hello! Yes.

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5. Can I get a refund of income tax when purchasing a plot of land in the city, if it was concluded in simple written form with further registration with the Federal Reserve System, and the payment of funds was carried out by receipt.

5.1. You can not. Firstly, tax deductions are provided only for the purchase of housing, not land. Secondly, purchase and sale is formalized differently.

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