Tax deduction on the sale of apartments and other real estate

The sale of the apartment or home, separate rooms and even giving individuals are required to pay to the budget 13% of the amount received. It is clear that it is unlikely someone will please. However, to significantly reduce the tax allows tax deduction on the sale of apartments.

First of all, you should determine what deduction – this is the amount that can be subtracted from the tax base (property value), but not due to the payment of tax. In other words, if deduction is 1 million roubles, the privilege tax will amount to only 130 thousand rubles (and all of it, as I think often unfamiliar with the nuances of tax citizens).

Dimensions property deduction

To determine the amount of property benefits, we must proceed from the length of stay of the property owned by the taxpayer. If the apartment was purchased over three years ago, to pay the tax does not have to.

If tenure was less than three years to reduce the tax base in one of the following ways:

- In the amount of 1 million rubles, and if the property was purchased for the intended loan to this amount, you can also add all interest paid. We emphasize again that the tax deduction on the sale of apartments applies only to the value of the property, that is, if it was less than 1 million, the tax base is zero, and no refund of the tax in this case is not allowed.

- the full amount of the purchase costs of the property sold now. These include directly the cost of acquisition, interest on the trust loan, as well as repair costs in case if the apartment under the contract are bought with no interior.

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But how to determine the period of ownership? To do this, you should consider the way of obtaining it. If the apartment was bought under the contract of purchase and sale, exchange, gift or rent, you should focus on the date of registration of the contract. However, if the property is in a cooperative house, the start date of possession shall be the date of full repayment of the monetary unit. In the case of the building the date of reference is the date of receipt of registration certificate on the property right. And when you inherit property with a start date of possession will be the date of death of the testator.

Deduction on the rent in shared or joint ownership

When the sale of the property which is in shared ownership, the property tax deduction on the sale of apartments will be distributed among the owners proportionally. For example, if the share of one of them is 1/6 of the house, and another –1/4, deductions are received respectively in the amount of 600 and 400 thousand rubles. In cases when the apartment is in joint ownership, the reduction of the tax base is distributed among the owners according to personal agreement.

Personal income tax upon the sale of several apartments

Often there are situations when in one year the taxpayer sells more than one residential unit or, for example, a house and a cottage. In this case, you need to know what tax deductions when selling real estate to 1 million rubles per calendar year is provided only once on the entire tax base, regardless of the number of the sold property. But to reduce the tax base when selling property to the amount of income in respect of each of the assets.

Example: Ivashin P. R. in 2012, he sold two apartments for 980 thousand roubles and 2 thousand rubles, bought in 2011, respectively for 900 and 1800 thousand rubles. Depending on the production method of the personal income tax would look like this:

1) 1 million rubles for the whole amount of income is: ((980+2000) - 1000)*13% = 257,40 thousand rubles.

2) the amount of expenses for a first apartment, a fixed amount – for the second: (980-900)*13% + (2000-1000)*13% = 140,40 thousand.

3) the amount of expenditure for both apartments: (980-900)*13% + (2000-1800)*13% = 36,40 thousand.

It is Easy to see that the means of reducing the taxable amount depends on the amount subject to tax.

The Order granting deduction

The tax code establishes that tax deduction on the sale of apartments can be availed unlimited number of times. That is, if you have already sold the property in 2012 and received a deduction when selling the property in 2013, you will again get the opportunity to reduce the sales tax.

To Use the deduction on the basis of the application, the reference 2-pit, contract of sale, copies of the certificate of registration and all payment documents. To receive a tax deduction on the sale of apartments, the taxpayer is required before April 30 of the following (the one in which the sales were made) to apply to the authority on the place of residence with a completed Declaration 3-pit.