Tax deduction when buying a summer house

Is there a tax deduction when buying a summer house?

If spouses become joint owners of housing, the right to a tax break (subject to all established conditions) arises for each of them. In this case, the total return per family will be 520 thousand rubles.

Before contacting the tax service, experts advise familiarizing yourself with the provisions of the current legislation. The process of providing deductions is regulated by Articles 78 and 220 of the Tax Code of the Russian Federation.

Limitations on the number of deductions. Income tax refunds when purchasing land and other real estate are only possible once in a lifetime.

Anyone who managed to exercise the deduction right before 2014, when the preference was one-time and had no restrictions on amounts, will not be able to receive a limit of 13% of 2,000,000 rubles.

Payment is made after registering the transaction and receiving money. To do this, the payer must fill out the appropriate declaration and transfer funds to the bank account of the tax service. You can also pay online by registering on the official website.

Your case falls under the amendments that came into force on January 1, 2010, which established that the permitted use of land does not matter if a residential building is immediately purchased together with the land.

When purchasing (constructing) a residential building on a dacha plot of land (or garden plot of land) without the right to register residence in it, in the opinion of the Federal Tax Service of Russia, set out in Letter No. ED-4-3/13167 dated July 19, 2013, a property deduction cannot be applied, unless it is recognized as a residential building. A dacha book is not a document confirming ownership. It is not registered with the Federal Property Management Agency and the tax office. Naturally, making a “purchase” using such a book is a huge risk.

Our dear reader, we will look into whether a tax deduction is provided in 2019 when purchasing a summer house in this material. Is this opportunity used in principle, how can it be implemented if necessary, and what is the maximum benefit limit? All these issues deserve our close attention.

When building a house, it is necessary to document the expenses incurred by a person. If housing was purchased using mortgage lending, then, in addition to the actual cost of the property, a person can claim a tax deduction for overpaid loan interest. However, the amount should not exceed 3 million rubles.

Attention! If a housing transaction was registered in 2010 or earlier, then working pensioners cannot claim to use the remainder of the property deduction.

A property tax deduction for expenses on land is not provided, only for the purchase or construction of housing. When you build a residential building (not a country house) on the site, you will be able to receive property. Deduction for the costs of its construction within 2 million rubles.

Yes, the DMV delicately suggested that you keep your papers as a memory, I suggested a more rational use for them, what kind of grievances there could be, we need to thank them.

More details about the required package of documents should be clarified in the department of the Interdistrict Tax Inspectorate. A common question is whether it is permissible to submit documents to obtain a property deduction without visiting the tax authorities in person?

Tax deduction when selling a dacha

An income tax refund when purchasing a summer house can be made if no more than three years have passed since the purchase and sale transaction. During this period, a citizen needs to contact the Federal Tax Service to receive a tax deduction. The right to such compensation is given to a person once in his life and can only apply to one object. The deduction depends on the size of the cost of the garden plot and country house.

The tax authorities refused to pay compensation. Ten years later, Volkov bought a country house, being officially employed. The Federal Tax Service granted him the right to receive funds.

Since 2020, the period of ownership of real estate for all transactions has been increased to 5 years from 3, with the exception of donation and privatization.

In such a situation, it is necessary to correct all mistakes made and submit the corrected statements again. The 3-month countdown will begin from the moment the amended declaration is submitted. If the decision is positive, the funds will be transferred to the taxpayer’s bank account according to the specified details.

Another possible situation. You purchase a plot of land and a garden house is located on it. Is it possible to obtain a property deduction in this case and for what objects?

The Tax Code provides for the possibility of providing a property deduction in the event of seizure of real estate for state and municipal needs, as well as in the assignment of rights to a share under an agreement for participation in shared construction (DDU). In this case, the amount of the deduction is determined by the purchase price of the site and the costs incurred to pay for the share of participation in the construction. How to get back 13 percent of the cost when purchasing In order to use the tax deduction when buying a plot of land with a house and get back 13 percent of the cost, you have to do the following:

1. Print and fill out a tax return in form 3-NDFL, or fill out the return electronically and sign with an enhanced qualified electronic signature;
2. Get a 2-NDFL income certificate from the accounting department at your place of work;
3. Make a copy of your passport certified by the accounting department.

Clarify the amount of the tax duty (as a rule, for citizens of the Russian Federation it is 13%, and for those who are not residents of the Russian Federation - 30%).

If you built a residential building on a dacha plot or purchased a residential building (with the right to register residence in it), there will be no issues with receiving a property deduction.

It is also possible for pensioners to receive a tax deduction, regardless of their employment. If such a citizen works officially, a percentage of income tax for the current period will be returned to him. If there is no official employment, the personal income tax percentage will be calculated based on the citizen’s past period of work.

It includes:

1. Declaration of income (3-NDFL), accompanied by a certificate of income (2-NDFL) - issued in the accounting department at the place of work;
2. Agreement on the purchase and sale of a land plot with a house;
3. Bank checks and statements confirming the fact of payment under the purchase and sale agreement.

People of retirement age can also receive a tax deduction for their dacha - if a person works in retirement, then his own contributions to the tax office will be returned to him. And if he simply receives a pension, then the funds he earned over the last three years can be returned.

A refund of the paid amount of personal income tax (within the limits of the amount provided by law) is available for tax residents of Russia. The money they receive as income must be subject to a 13 percent tax rate.

When carrying out these same operations in the CIS countries, citizens of the Russian Federation are guided, first of all, by the legislation of their country.

When submitting documents, if ownership was registered after July 15, 2020, you must provide an extract from the Unified State Register to confirm the right to deduction.

This condition in Russian legislation applies not only to country houses, but also to houses under construction or not yet completed.

When it is necessary to reimburse the payment of interest accrued under a loan agreement concluded for the purchase of housing, its construction or the purchase of land under individual housing construction, the rules will be slightly different.

You can use the deduction right within 3 years from the date of expenditure, but not earlier than the end of the tax period (if through the Federal Tax Service).

DMV, dear, you are apparently not very familiar with tax deductions. And you very confidently mislead people.

When a person has acquired a plot of land and begins to own not only the land, but also the country house located on it, the state will agree to reimbursement of expenses.

Since 2014, after the introduction of legislative innovations in the tax industry, compensation for previously paid taxes can be received for a dacha, and not just for residential space. Until that moment, the benefit applied exclusively to individual housing construction and investments in residential properties for year-round use.

And for an apartment with 200,000 rubles, you will pay tax (in any case, if the sale amount is indicated as 1,500,000 rubles). This is 26 thousand.

In this case, working pensioners have at least two sources of income: pension and earnings, from which the employer withholds the same 13% personal income tax.

In the video about registering property deductions

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By acquiring ownership of real estate, Russian citizens can apply for a tax deduction, which is refundable when purchasing a dacha, a private house under construction or an unfinished one. The amount of tax refunded by the state today is 13% of the purchase. According to tax legislation, every Russian who has reached the age of majority, once in his life, has the right to return a portion of 13%, but not more than 2,000,000 rubles.

In the case of the acquisition of several real estate objects by one person, the opportunity to return a tax of 13% for its purchase is provided until the specified limit is reached. It is also important to remember that in order to return compensation for a plot with a house, no more than three years must pass from the date of its acquisition. This condition in Russian legislation applies not only to country houses, but also to houses under construction or not yet completed.

Deduction amount

How much is the tax deduction when buying a house with a plot? According to the law, the refund amount cannot exceed 13% of the expenses incurred by the citizen. But this is not the only limitation. There are other features.

The thing is that the total amount of deduction for land and house cannot exceed:

• 260 thousand rubles - if the property is purchased immediately;
• 390 thousand - when drawing up a mortgage agreement (this includes the deduction of % of the mortgage).