How to Reduce Property Tax on Individuals 2020: Changes and Amendments

There are two additional conditions under which real estate is exempt from tax:

the property is not used for business purposes;
the property must be the personal property of the taxpayer.

In addition to all of the above, it is necessary to understand that according to the new requirements, a tax benefit is provided exclusively in relation to one object of each type of real estate. At the same time, the pensioner himself makes the direct choice. Consequently, if a pensioner has several dachas or apartments in personal ownership, then the application of the benefit will be permissible only in relation to one apartment or dacha.

Sample application to the Internal Revenue Service for property tax benefits for pensioners

To do this, you need to take the following steps:

Contact the tax authorities and provide a certificate in Form 3 of Personal Income Tax, with the items, income, and value of the property indicated in it.
In addition to this document, you will need to write a corresponding application, the form of which should be obtained directly from the tax office. As an addition, you will need a photocopy of your passport, a certificate of income 2 personal income tax, as well as a package of documentation for the apartment. In addition, it is necessary to provide a receipt for receipt of funds, a contract for the purchase and sale of real estate, and the right to own the property.
After this, the provided documentation is checked by representatives of the tax service. Particular attention is paid to checking the correctness of all documents, the pensioner’s right to receive benefits.

Documents required to apply for benefits

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In order to figure out how a pensioner can avoid paying property taxes, you first need to familiarize yourself with the list of documentation that will need to be provided to the tax service. The list of this documentation includes:

statement;
passport of a citizen of the Russian Federation;
pensioner's certificate;
TIN;
documents that confirm ownership of real estate.

Having collected a complete package of documentation, the citizen must contact the tax service, where he fills out an application for benefits. Please note that the application is the main document confirming the pensioner’s immediate desire to take advantage of the property benefit. The law does not stipulate a clear form for filling out an application of this type, however, the samples on which it is drawn up are available on the official website of the Federal Tax Service of the Russian Federation.

Before personally contacting the tax service, a citizen is recommended to first read all the background information. That is, you can use the Federal Tax Service website or contact the authorized body by phone. It would be a good idea to familiarize yourself with the days and times at which documentation is accepted.

The document must be drawn up within the established standards, fully defining the essence of the issue. The tax representative is obliged to provide the applicant with all the necessary information, if such a need arises. If the document is completed incorrectly, the tax representative must ask the citizen to make certain adjustments to eliminate errors. Often, for these purposes, it will be necessary to draw up another application in strict compliance with all norms and requirements.

The application must include the following information:

Full name of the pensioner;
name of the regional tax office;
Full name of the head of the civil service;
pensioner's TIN;
passport information;
actual residential address;
the main purpose of the application;
the method of receiving a response about the decision made by the tax service;
date of registration and preparation of the application;
personal signature of the citizen who fills out the application.

You can submit your application, as well as other necessary documentation, in the following ways:

Personally submit to the tax authorities.
Send them by mail.
Send documents by electronic message using a special service that operates on the website of the Federal Tax Service of the Russian Federation.

Documentation with the application must be submitted before November 1 of the tax year. For example, if the tax is paid for 2019, then the documentation must be submitted before November 1, 2019. After this date, it will no longer be possible to change the type of property in respect of which tax must be paid.

Application for property tax benefits for pensioners

Tax audits
What should a complaint to the tax inspectorate contain?
Tax return

Complete list (list) of persons who are required to file a tax return
Sample of filling out the 3-NDFL tax return for 2014 - 2017:
title page
income from sources in the Russian Federation, taxed at a rate of 13% (sheet A)
calculation of property tax deduction (sheet D 1)
calculation of property tax deductions for income from the sale of property (sheet D2)
calculation of standard tax deductions (sheet E1)
calculation of social tax deductions (sheet E2)

General requirements for filling out a tax return

Errors when filling out tax return 3-NDFL

Differences in the new tax return form (3-NDFL) (approved.

Tax benefits for pensioners on property tax in 2018

Application for property tax benefits for pensioners This document is in a free form, since at the legislative level there is no regulatory legal act that would establish a single sample. But, despite this, in 2020 a standard form for this application was officially approved, which is filled out as follows:

In the upper right corner, information regarding the address of the subordinate tax authority is filled in;
Next, the applicant must check the box next to the required box, which lists the types of taxes;
Then the pensioner fills in the information that he receives this benefit on the basis of a pension certificate;
Next, the taxpayer enters information of a personal nature.

Statements

garage or parking place;

the notification must indicate one taxable object of each type at the taxpayer's choice in respect of which the taxpayer wishes to apply the benefit. If a taxpayer owns different types of real estate (for example, a residential building and a garage), he has the right to claim preferential taxation on both properties. If you own several real estate objects of the same type, you can choose the object in respect of which the benefit will be applied;
If the notice is not provided by November 1, 2020, it can be provided the following year in order to take advantage of the tax benefit in 2020. At the same time, for 2015, the benefit will be provided in relation to the object with the maximum tax amount.

Calculation of tax on real estate according to new rules - from 2020

In the case where several plots are owned, the owner has the right to independently choose from among them the one for which he wishes to apply the benefit. Notification of your choice must be sent to the tax office. Otherwise, by default, the deduction will be calculated in relation to the largest plot.

apartment
part of the apartment
room
House
part of a residential building
premises or structures used exclusively as:
studio
studios
residential buildings, apartments, rooms for organizing non-state museums, galleries, and libraries open to visitors
commercial building or structure:
located on the land plot for maintaining: personal subsidiary plots (LPH)
dacha farming
gardening
gardening
individual housing construction (IHC)
garage
parking space

Tax benefits for pensioners - procedure for provision and sample application

Important

Persons of retirement age are a category of people that the state tries to constantly support and provide with various benefits. One of these important advantages is the provision of property tax benefits. As for the current pension system in the Russian Federation, only one thing can be stated - it needs a considerable number of improvements in order to become completely perfect and adapted to the needs of the population.

Today, given the unstable economic and financial situation of the country, the government is still trying to implement everything possible to make life easier for pensioners.

Application for property tax relief

Info

There is no need to panic, but you must immediately take the receipt, contact the Federal Tax Service inspectorate and provide the employee with your pension certificate as confirmation of the right to use the benefit. Besides all this, there is a certain caveat. Provided that if the real estate is located in shared ownership, then it is initially necessary to identify persons of retirement age among all owners.

For other property owners, pensioners do not have to pay taxes in their original form, but divide it directly between the elderly people who live in this apartment. Our lawyers know the answer to your question. If you want to find out how to solve your particular problem, then ask our duty lawyer online. The second is for transport tax benefits. The third is for a property tax benefit. General rules for filling out the application:

on the computer;
by hand.

In the first case, fill out the document in “Courier New” font size 16 - 18 points. Secondly, in black ink. Fill out the application from left to right in block capital letters.

Enter one letter or number in one cell. In all empty cells that do not contain data, put a dash (horizontal line). After completing all the necessary sheets, enter their serial number. The title page is always number “001”. Title page First of all, indicate your Taxpayer Identification Number. If you don't know it, you don't have to indicate it. But you can find it out using our “Find out your TIN” service. Next, indicate the code of the tax office to which the application is sent. In practice, this means that benefits and the procedure for their application (as well as tax rates) for:

Only federal authorities have the right to establish federal taxes through the adoption of federal laws;
regional taxes have the right to be established by both federal and regional authorities;
Local taxes have the right to be established by both federal and regional authorities and local governments (municipalities on whose territory a land plot, house, apartment, or other real estate is located), and for federal cities of Moscow, St. Petersburg and Sevastopol - legislative ( representative) government bodies of federal cities of Moscow, St. Petersburg and Sevastopol).

How to challenge the cadastral value

The procedure for challenging the cadastral value of real estate is established in accordance with Art. 22 of the Federal Law of July 3, 2016 No. 237-FZ “On State Cadastral Valuation”. The cadastral value can be challenged by interested organizations and individuals. For example, taxpayer owners or tenants/buyers of real estate.

An application to challenge the cadastral value can be submitted either to a special commission under Rosreestr, or directly to the court. There is no mandatory pre-trial settlement of disputes in such cases.

You can submit an application to the commission through the Rosreestr office or the multifunctional center (MFC). You can also submit your application by mail or via the Internet, including through the government services portal.

If an organization or individual decides to challenge the cadastral value through a commission, before filing an application it will be necessary to assess the market value of the disputed object. A market value assessment report on paper and electronic media will need to be attached to the application.

Also attached to the application:

an extract from the Unified State Register of Real Estate on the cadastral value of the property, containing information about the disputed results of determining the cadastral value;
a copy of the title document for the property.

Without these documents, as well as without a report on market value assessment, the application will not be considered.

After receiving the entire set of documents, the commission will send a report on the assessment of the market value to Rosreestr within three working days. The application itself will be considered no more than 30 days from the date of its receipt. Based on the results of the consideration, the commission will make one of the following decisions:

decision to determine the cadastral value of a property in the amount of its market value;
decision to reject the application to challenge.

In the second case, the applicant will have the right to challenge the commission’s decision in court.

Application for cancellation of property tax for a pensioner

Attention

A sample of filling out such an application may look like this: To the Inspectorate of the Federal Tax Service of Russia No. 11 for Moscow from Ivanov Ivan Ivanovich INN1 770102030405 residing at address2: 127381, Moscow, st. Otkrytaya, 18, apt. 90 contact telephone APPLICATION Based on paragraph 1 of Article 56 of the Tax Code of the Russian Federation and (name of the regional or local regulatory act providing for the benefit), I ask you to provide me, an old-age pensioner, with a tax benefit in the form of an exemption from paying (name of tax) in relation to what I own (name property).

Information about the property: Item No. 1 (for registration of transport tax benefits): make, model: ; state registration plate: ; year of issue: ; engine power (hp/kW): .

Application form for cancellation of property tax for a pensioner

To get your tax back, you need to submit not one, but two applications to the inspectorate:

to provide benefits from the date when you became entitled to it (month of retirement, month of receipt of disability, etc.);
for a tax refund for periods when you could have taken advantage of property tax benefits, but did not (see the link for a sample).

Send both applications in one letter. Example: A pensioner had the right not to pay property tax on the cost of an apartment, but paid it regularly. The pensioner learned that he had been paying taxes in vain in March 2020. He has the right to demand a refund of taxes paid starting from March 2020. He no longer has the right to claim a refund of the tax that was transferred even earlier.

Personal income tax

In addition to the standard property tax, owners are forced to pay an additional tax if they perform certain legal actions with the property.
For example, they need to pay the so-called income tax on their own apartment after its sale. The fact is that selling real estate involves making a certain profit. This is the amount that is taxed. The personal income tax rate is standard and is 13% for citizens of the Russian Federation and 30% for foreigners. Tax must be paid after the sale transaction is completed.

If the transaction amount is below 70% of the cadastral value of the housing, then personal income tax is calculated from the cadastral value.

As for the timing, previously payment of income tax was not required if the seller owned the apartment for more than 3 years. That is, if 2 years have passed since the registration of property rights, then the owner will have to pay tax upon sale. In some cases, personal income tax is not calculated after 3 years of owning an apartment if:

it was privatized;
the living space was received by inheritance, gift or rent agreement.

For other owners the period has been extended for 5 years.

Reducing the amount

Every citizen has the opportunity to use certain benefits that allow them to reduce income taxes. To do this, you can use one of the following methods:

receive a deduction;
prove no profit.

As for the deduction, its size is 1 million rubles. This amount of profit is not subject to any taxes. The payer can apply the deduction only once per tax period and only in relation to one piece of real estate. If a husband and wife sell two apartments during the year, then they can both take advantage of the deduction, but only for different apartments.

The tax authorities accept the lack of profit as a valid reason for non-payment of tax. But this requires serious reasons. For example, selling for less. That is, the owner bought the property for 2 million rubles, and sells it for 1.7 million rubles. Naturally, he does not receive any income.

It can also be proven that the owner incurred significant expenses to restore the property before selling it. You will need checks and receipts confirming expenses. Another good reason is a mortgage. If the owner purchased housing with bank money and sells it to pay off the debt, personal income tax may not be deducted.