Deductions for an apartment on a mortgage. Interest deduction

All citizens of the Russian Federation have the legal right to. In simple words, this is a refund of personal income tax paid for the year in case of purchasing real estate. After state registration of property rights, the question arises: when is it necessary to start applying for a tax deduction for a mortgage. Before answering, you need to understand what it is and who can take advantage of this opportunity.

Only citizens of the Russian Federation who have reached the age of majority and have an official source of income can apply for a property deduction for a mortgage.

You can apply for a refund:

• Working citizens;
• Persons on maternity leave;
• Pensioners;
• Unemployed.

Everyone officially employed and receiving wages automatically contributes 13% to the state treasury every month. It is this money that can be returned.

Maternity leave

While a citizen is on maternity leave, the state pays social benefits that are not subject to income tax. The situation is approximately the same with temporarily unemployed persons. But if a citizen worked in the previous year, even for several months, you can take a property deduction on a mortgage on a general basis.

Pension

The pension is also not burdened with personal income tax, so it will not be possible to return interest on it. In this case, the legislation provides for special conditions - citizens working in the previous 3 years before retirement can return a tax deduction on this income.

What types of income can you get a property refund from?

The maximum amounts that can be received for are 260 thousand rubles for the main deduction, and 390 thousand rubles for a return on mortgage interest, from 2 and 3 million rubles, respectively.

An important point is what funds were spent to pay off the mortgage. If used, the value of the spent certificate is not taken into account in calculating the total amount of real estate costs. The same rule applies to the purchase of housing.

You can return 13% only from the personal savings invested in purchasing an apartment. Likewise, if part of the amount was contributed by the employer. Official sources of income from which 13% are returned are:

• Dividends and interest from business activities;
• Insurance payments;
• Income from the sale of copyright;
• Income from real estate for rent in the Russian Federation;
• Wages and other forms of remuneration for services rendered.

Entrepreneurs using the simplified taxation system cannot claim 13%.

Types of tax deductions

It is possible when the following types of real estate are purchased with a mortgage:

• Residential properties under construction;
• Apartments;
• At home;
• Rooms;
• Land plots for construction;
• Shares in the above objects.

Mortgage repayment consists of the payment of funds spent on repayment of:

• Mortgage interest;
• Payments by .

Watch useful video

Application deadlines

You can make a deduction on a mortgage only when ownership is confirmed - after all contracts have been completed with the seller and the bank issuing the loan. The same rule applies to building plots. State registration of rights is carried out only for a house that has been put into operation.

The time for interest on a mortgage in an apartment building under construction begins only after the DDU is changed to state registration of the right. A mandatory document is the transfer and acceptance certificate.

In addition to the extract from the Unified State Register of Property Rights, the second document on which it depends when the tax deduction for an apartment can be returned to the mortgage is the 3-NDFL declaration. It is filled out at the end of the calendar year. Declarations are accepted until April 30. Therefore, you can apply for a property deduction from January to April (inclusive) in the tax period following the year of purchase.

The mortgage return declaration must be submitted complete with all documents. If your income level does not allow you to receive payments in one year, then this procedure will have to be repeated in the next tax period. The same applies to the cancellation of personal income tax withholding by the employer.

Through the employer

In addition to directly receiving a property deduction, you can claim a reduction in the amount of income taxable to personal income tax in the amount of expenses incurred for the purchase of housing. In this case, you won’t have to wait until the end of the year—documents are submitted immediately after the purchase is completed.

To take advantage of this opportunity, you must contact the tax service and obtain confirmation of your right to a tax deduction. After the documents are collected, a decision is made within 30 days. A confirmation of entitlement is issued and transferred to the employer. Starting next month, personal income tax of 13% will no longer be withheld from wages.

Possible restrictions

There are no specific deadlines when you can apply for a tax deduction for an apartment with a mortgage. You are allowed to contact the Federal Tax Service at any time. The only condition is that you can receive a refund only for funds spent in the previous three years. Also, without restrictions, you can apply for the main deduction until you reach the maximum amount spent on the purchase of housing - 2 million rubles.

You can apply for a tax deduction for mortgage interest only once and only after exercising your right to the main deduction. Repeated applications, even without reaching the maximum limit of 3 million, will be rejected. Receipt of the main deduction earlier does not cancel the right to a refund on interest. It is allowed to use two types of payments for different housing.

Package of documents

In addition to the two documents mentioned above, you will need:

• Statement;
• Passport;
• Certificate 2-NDFL;
• Contract of sale;
• Acceptance certificate (for new buildings)
• Mortgage loan agreement;
• Payment documents;
• Statement of interest payments made.

After everything has been collected and submitted, 3-4 months are allotted to verify the application. 10 days after the decision is made, the tax service notifies the applicant that the request has been granted. No later than 3 days later, money in Russian currency is transferred to the bank account whose details were specified earlier. Payments are made by the Federal Tax Service at the place of permanent registration of the applying citizen.

Mortgage has always been considered one of the most difficult and financially burdensome loan products. But sometimes without borrowed funds it is not possible to purchase your own home. Today, the state, out of concern for its citizens, offers to refund interest on a mortgage loan, which allows for significant savings. How this scheme works and what you need to do to get a certain percentage of your mortgage interest back.

Having your own home has always been considered a certain measure of material values. And if 25-30 years ago decisions on the resettlement of citizens were carried out by the state, today people are forced to solve these issues on their own. By concluding a mortgage agreement with a bank, the borrower takes on heavy financial obligations for a long time, but citizens can still count on some financial assistance today.

According to Article 220 of the Tax Code of the Russian Federation, the borrower can count on a return of 13% of the refund. To do this, you need to prepare a package of documents and submit it to the authority that deals with mortgage payments.

A tax deduction is a tool that can be used to return part of the money spent on paying a mortgage.

It is important to understand that the money is returned not by the bank itself, where the borrower applies for the loan, but by the state.

Interest calculation scheme

What is the return of interest on a mortgage loan? According to the legislative framework, every citizen receiving official income is required to pay 13% income tax on this income.

That is, when receiving wages, the employee actually receives only 87% of the total amount. The employer pays the remaining 13% to the state in the form of tax. This is the so-called personal income tax (NDFL).

When applying for a mortgage and having a certain package of documents, a citizen may be exempt from paying this same 13% tax.

Now let's calculate how profitable this is.

The fact that the state compensates 13% of taxes for mortgage lending is understandable. But what amount is the calculation based on and how to correctly calculate what compensation you can expect before going to the bank for a mortgage?

The borrower can expect a return of 13% when applying for a mortgage loan if he has the necessary package of documents and submits it to the relevant authorities.

Property deduction: rules and features

It is not necessary to rush and quickly collect documents immediately after signing the mortgage agreement to calculate the interest refund. The client who has taken out a mortgage has the right to submit the necessary package of documents within three years from the date of signing the agreement. In this case, the payment will be made exactly from the moment the transaction is completed.

Do not forget that the required list of documents includes loan payment receipts, which confirm that the deductions correspond to the payments made.

Clients who are planning to take out a mortgage on their home are interested in the question of how the interest refund is calculated and what specific amount can be expected?

According to Article 220 of the Tax Code of the Russian Federation, every citizen who pays taxes has the right to a tax deduction:

• in the amount of actual expenses incurred for the purchase of housing no more than 2 million rubles;
• in the amount of expenses for paying mortgage interest no more than 3 million rubles).

The maximum amount for calculating the interest property deduction on a mortgage is 3 million rubles. Now, using a simple mathematical method, we calculate 13% of 3 million rubles and get 390 thousand rubles. But, if the amount of income tax that a citizen pays to the state due to low wages is much less, then only part of the amount will be returned to him.

This point is very important for those citizens who receive the so-called “gray” salary. That is, the employer officially calculates the minimum wage, and in an envelope pays the employee the rest of the amount in accordance with his qualifications and functional responsibilities.

The maximum maximum amount of real estate value from which the calculation will be made is 2 million rubles. If a house or apartment costs more, then the state can return only 260 thousand rubles (13% of 2 million rubles).

Another very important point is the calculation of the total personal income tax paid by a citizen for the reporting year in which the property was purchased.

Refund of interest - benefit from the state

Please note that 260 thousand rubles is the maximum amount that the state will return, and if the salary is not large and, accordingly, the amount of annual income is less than 260 thousand rubles, then the state will return exactly the amount of taxes paid for the year. The difference between 260 thousand rubles and the deduction amount will be transferred to subsequent years until the debt is fully repaid.

How to exempt yourself from paying 13%?

To exempt yourself from the 13% taxes that are included in your monthly mortgage loan, you must meet the following criteria:

• receive white wages;
• apply for a mortgage (not to be confused with a loan to purchase real estate);
• be a resident of the Russian Federation.

The return of thirteen percent is called a property deduction, and it can be carried out in two ways: by deduction directly to the client or to the employer. This is a kind of benefit from the state that helps you save on your mortgage. The benefit applies to working residents of the Russian Federation, whose earnings are subject to a 13% personal income tax.

Please note that pensions, social benefits, financial assistance from the state, as well as bonuses and incentives are not included in the income tax amount. Therefore, when pre-calculating the amount you can count on to save money spent on a mortgage, take into account only “white” official income.

However, individuals pay tax not only on wages, but also on any other income. Therefore, if a citizen officially receives income from a plot of land, rental housing, etc., then when filling out a declaration and calculating the state deduction, these data will also be taken into account.

The client who has taken out a mortgage may be exempt from paying income tax or will receive a partial refund of the amount spent on the mortgage loan. Many here have a completely reasonable question: what is the connection between mortgage lending and a citizen’s income tax?

A tax deduction is a very significant financial assistance from the state to those citizens who have an official income, pay taxes and at the same time used the services of banks to obtain a loan. If an employee works part-time, he has the right to receive a refund of interest on all taxes paid.

If real estate is registered in the name of a child, then a parent who is officially employed and pays monthly income tax can count on the deduction.

Who can count on interest repayment?

A mortgage is a bank loan product that involves issuing a loan for the purchase of housing. The state recognizes that purchasing real estate with a mortgage is a heavy burden and partially compensates for these costs.

• Citizens who have officially confirmed income. These are primarily those people who work in enterprises and receive white wages
• Non-working pensioners.
• Women after returning from maternity leave.

Accordingly, the list of people who can count on a partial refund of the cost of housing does not include:

• unemployed citizens of retirement age;
• non-residents of the country;
• businessmen who pay taxes using special forms (simplified system);
• women who are on maternity leave for up to 1.5 years.

Regarding the last point, there is a slight digression here. If a woman interrupts maternity leave (regardless of his age) and goes to official work, then she can also count on a refund of interest.

How is interest refunded?

The borrower can choose one of two ways to repay interest:

• refund at the end of the calendar year;
• monthly deduction of interest from the total payment, underpaying tax.

When choosing the first option, the entire amount will be transferred to the client’s plastic card.

If we talk about a one-time deduction of all interest paid on the mortgage, then this option is only possible in the case of a full lump sum repayment of the loan.

Before collecting documents for submission to the tax office, it is important to understand what basic requirements the fiscal service puts forward when returning interest.

Firstly, this is the targeted nature of the loan. If a client takes out a cash loan from a bank for the further purchase of real estate, then such a loan portfolio is not a mortgage. Even if the client provides all documents indicating that the loan proceeds were used to purchase a home.

Video. How to get interest refund?

A mortgage is a highly specialized loan product that involves issuing a loan specifically for the purchase of housing. That is, this is a targeted loan, and in this case, the owner is deprived of freedom to dispose of money. In principle, he does not receive money in his hands.

The funds are transferred by the bank to the settlement account of the Apartment Seller after signing the contract and all insurance documents.

Important! To receive a deduction, you must apply for a targeted loan (mortgage).

Therefore, before purchasing a home on credit, it is important to understand which type of banking product is best for you: a mortgage or money for an apartment.

How is this technically reflected in the documents? The contract must clearly indicate the object of lending (apartment, house), indicating its address, cost, etc.

Secondly, the borrower must not be a debtor to the tax service. In this case, the tax office may refuse to refund the mortgage interest.

If, within a few days after the refusal for this very reason, the borrower brings a receipt for payment, you can resubmit the application for consideration. In this case, the tax service, if all other required documents are available, will have no reason to refuse.

Reimbursement of interest from the state is possible only on loans aimed at the purchase of any type of housing (house, apartment, cottage, room in a communal apartment, share in an apartment).

Documents for receiving interest refund

After completely collecting all these documents, the borrower personally takes them to the tax office at the place of registration, where a service employee makes a reconciliation and accepts the application.

A full calculation of the mortgage interest refund will be made after employees have verified the documents.

If during the validity of the loan agreement and payment of the mortgage there was a restructuring of the bank (Lender) or its complete change, then the tax service, along with the above package of documents, must submit information about the assignment of the loan portfolio to another bank.

Filling out a tax return is one of the most important steps on the path to obtaining a property deduction from the state.

To make it easier for you to understand the features and nuances of filling out 3-NDFL, we suggest that you familiarize yourself with the detailed video instructions. In addition, you can find many online resources on the Internet where I offer assistance in filling out this important tax document.

Video. How to fill out the 3-NDFL declaration for property deduction

In some cases, interest is refunded by the employer. To do this, you need to collect documents to present at your place of work.

Each client can receive the right to a property deduction from the state immediately after signing the real estate acceptance certificate. This is the case if equity participation is registered.

When buying or selling, the title agreement will be the main document with which you can claim a refund of interest.

Nuances of interest repayment

It is important to understand that interest repayment will occur as long as the loan is repaid.

When paying a mortgage loan through an ATM, later, when presenting documents for interest repayment, some difficulties may arise. The fact is that the receipt issued by the terminal does not indicate the last and first name of the borrower.

If the apartment is registered in the name of two co-owners (for example, both spouses), then two people own the housing in equal shares. In this case, the deduction will also be made in equal shares from both owners. At the same time, the borrower does not have the right to transfer his part of the deduction to another co-owner.

Tax interest refunds are made only on expenses incurred at your own expense or through a loan. This does not include expenses for state subsidies and maternity capital.

How to return interest over several years?

This point is worth paying attention to those people who are hearing for the first time about the possibility of a partial refund of money paid for a mortgage issued several years ago.

This does not mean that time has been lost, and now you can only count on a refund from the current moment.

The recipient of this money, as mentioned above, can only be a citizen who has official employment. If at the time of the transaction the client already had an official salary with personal income tax deduction, then he can count on a refund of interest on the mortgage.

To do this, it is enough to fill out a declaration (NDFL-3) and generate a tax report, which will indicate by what amount the amount of funds spent on paying for a mortgage loan can be reduced.

It is quite obvious that the higher the salary and, accordingly, the personal income tax payment (this is 13% of income), the higher the deduction amount will be. The maximum mortgage amount from which the deduction will be calculated is 3 million rubles. If the value of the property exceeds this limit, then you can count on a fixed return amount of 390 thousand.

If, on the contrary, the cost of housing is below two million rubles, then with a mortgage you can get this amount (390 thousand rubles) from your next real estate purchases.

The deduction cannot exceed the amount of income tax withheld. That is, a citizen can expect a return of no more than 13% of accrued wages. There are no restrictions on the number of years of payment.

Let's calculate with an example:

Citizen N. receives an official salary of 10 thousand rubles every month.

Income tax for the month is 1300 rubles. (10,000*13%). For a year – 15,600 rubles (1,300*12 months).

He paid 105 thousand rubles in interest for the mortgage in 2016.

In this case, citizen N. can count on all 13,000 rubles, since his annual contributions to the state exceed the amount of interest paid.

It is important to understand that there is no statute of limitations for the return of interest on mortgage lending, so you can provide data on an already paid loan.

Conclusion

Of course, a mortgage loan is a heavy financial and time burden that not every person decides to take. But today you can count on a partial return of the amount spent on the mortgage in the form of a refund of interest.

If you have all the necessary documents and official employment, you can return up to 13% of the total cost of housing.

Don’t forget that financial literacy and knowledge of the laws allows you not only to pay less taxes when selling, but also to receive substantial monetary compensation from the state when applying for a mortgage.

Video. How can I get some of my mortgage back?

A property deduction when purchasing real estate partially compensates for the costs associated with purchasing an apartment.

Likewise, the tax deduction on mortgage interest, although sometimes insignificant, still reimburses the costs associated with paying off the loan. Borrowers receiving official income can apply for it.

Not everyone has the amount of money necessary to buy a home. Therefore, many people use targeted loans to purchase real estate. , according to Art. 220 of the Tax Code of the Russian Federation, gives the right to claim a tax deduction on loan interest.

You can count on compensation by taking out a mortgage for the purchase of:

• Apartments, including in a building under construction;
• Country house, including one under construction.

A tax deduction on mortgage interest is a kind of compensation, an amount of money in the amount of personal income tax paid for the period, which a citizen can return from the budget in connection with incurring certain expenses.

In this case, the cost refers to the payment of interest on the mortgage.

Citizens who meet the following requirements can apply for a tax deduction:

• Those who have entered into contracts and pay interest for the use of funds;
• Those who purchased housing located on the territory of the Russian Federation;
• Those who receive official income, from which income tax is paid to the budget.

Cannot count on a refund:

• Unofficially working citizens;
• Entrepreneurs on the simplified tax system or a patent;
• Apartment owners who did not pay for the purchase of housing on their own;
• Citizens who previously exercised the right to deduct personal income tax on interest paid to the bank.

How to calculate the deduction amount?

When purchasing housing, it is advisable to return it as a matter of priority. The maximum amount is 260 thousand rubles. (13% of 2 million rubles). Then you can begin to return the interest deduction.

Reimbursement is possible from the year in which payments under the loan agreement began.

Let's calculate its size using a specific example. To do this, you will need documents that must first be requested from the employer and the creditor bank:

• Certificate 2-NDFL for the previous tax period (year);
• Certificate of interest paid for the previous tax period (year).

Let’s say the documents contain the following information:

• Earnings for the year - 800,000 rubles.
• Withheld personal income tax for the year - 104,000 rubles.
• The amount of mortgage interest paid to the bank for the year is 115,000 rubles.

Thus, 800 thousand rubles were earned in a year; from which personal income tax is withheld in the amount of 104 thousand rubles. The amount of mortgage interest paid to the bank amounted to 115 thousand rubles. Accordingly, the amount of the deduction is determined as follows:

115,000 × 13% = 14,950 rub.

This calculation must be carried out annually until:

• The amount of interest paid to the bank will not amount to 3 million rubles (if the apartment was purchased after 01/01/2014);
• The loan will not be repaid in full.

Maximum amount to be refunded

Let's take a closer look at recent adjustments to tax legislation. The right to a refund of taxes previously paid to the budget has been reserved for citizens who pay for a long time.

At the same time, in 2013 there were a number of clarifications in tax legislation.

In particular, the changes affected the maximum amount of interest deduction:

Thus, provided that until December 31, 2013 inclusive, a citizen has the right to return funds without restrictions on the amount of interest paid to the bank.

If the property was purchased in 2014 or later, the amount of interest on which compensation may be received, cannot exceed 3 million rubles.

You can exercise your right to deduct mortgage interest once in a lifetime within one property. In this case, the date of purchase of real estate with a mortgage does not matter.

Ways to receive a deduction

There are two ways to return income tax paid to the budget:

1. Through the employing organization. In this case, a visit to the tax authority still cannot be avoided, since the accounting department at the place of work must be notified that the tax deduction was not received through the Federal Tax Service;
2. Independently, by submitting the 3-NDFL declaration and the package of documents established by law to the tax office. This can be done as early as the next year after the mortgage loan agreement is signed. The declaration can be submitted at any time during the year. The first time the declaration is submitted after the end of the tax period, the next year after purchasing a home with a mortgage.

Necessary documents and algorithm of actions

In order to return part of the funds to citizens who bought housing and paid for a targeted loan, it is necessary to prepare the following package of documents:

• Declaration 3-NDFL. The declaration form and instructions for filling out are updated annually and at the beginning of the year are posted on the website of the Federal Tax Service. In addition, you can print the completed declaration from the taxpayer’s personal account;
• Copy of the passport;
• Original certificate 2-NDFL;
• Loan agreement with loan repayment schedule (original and copy);
• Receipts for payment of monthly payments or a certificate from the bank about interest paid for the year (original).

Documents related to the purchase of real estate are not needed if they were submitted when receiving a deduction in connection with the purchase of an apartment.

Otherwise, a certificate and a contract for the purchase of housing, as well as payment receipts (receipts) confirming settlement with the seller, are required.

Documents are inspected at the applicant’s place of registration in person, through an authorized representative or by Russian Post. To avoid standing in line, you can make an appointment with a specialist in advance for a certain time through the Federal Tax Service website. When visiting, it is advisable to have a copy of the TIN with you.

Accepted documents will be sent for verification. A desk check of data for obtaining a deduction is carried out by employees of the territorial tax office within 3 months. After this, the authorized person makes a decision on granting a deduction or refusing to return the personal income tax.

Reasons for refusal may be:

• Indication of false information;
• Providing an incomplete package of documents.

A citizen can eliminate shortcomings and comments, after which he will again have the right to receive a deduction.

If it is impossible to correct the situation, and the citizen does not agree with the decision of the Federal Tax Service to refuse to provide a refund of part of the mortgage interest, he can appeal the decision:

• In higher divisions of the tax authority;
• In a court.

If a positive decision is made on the return of personal income tax, the citizen fills out a return application, in which he indicates the bank details for transferring funds. We are talking about a current account opened in the name of the applicant.

Within a month from the date of submitting the application, the money will be transferred to the specified account. To return personal income tax, you can use accounts opened in any banks in the Russian Federation.

Detailed information about what is necessary to receive a deduction and the procedure for providing it is available on the Federal Tax Service website.

Tax deduction for shared ownership

Often, when buying an apartment, spouses register real estate in. In this case, the right to personal income tax compensation remains with each spouse.

It does not matter who actually pays the loan: the expenses incurred by the spouses are in any case considered common. Therefore, the interest deduction can be distributed either in half or in any other proportion by submitting a corresponding application to the tax office signed by the spouse who renounced his right to the deduction.

For example:

The spouses purchased an apartment with a mortgage, registering it as ½ ownership of each. Simultaneously with the documents for personal income tax refund, they provided an application for the proportional distribution of expenses related to the payment of the loan, dividing them in half. The amount of interest they paid jointly to the bank for the year is 115,000 rubles. Consequently, each of them can count on a return of 13% of RUB 57,500; which is 7,475 rubles.

It is worth considering that the maximum amount to be returned (3 million rubles) in this case is divided in half: 1.5 million rubles each. for each home owner, if the apartment was purchased after 01/01/2014.

The Ministry of Finance of Russia in letters of recommendation (No. 03-04-05/63984 dated November 6, 2015 and No. 03-04-05/49106 dated October 1, 2014) admits that spouses can annually, based on an application, determine the amount of expenses of each of them in the tax period to repay mortgage interest

So, many citizens can receive a deduction from mortgage interest. It is not so difficult to exercise this right, and the money raised can speed up the process of repaying the loan.

Paying taxes in Russia is not only an obligation. This process gives citizens certain rights. For example, taxpayers will be able to receive so-called tax deductions. Today we will be interested in the return of personal income tax on mortgage interest. Many citizens face this process. Therefore, the right to deduct mortgage interest must be studied in detail. This is the only way a citizen can implement it without much difficulty. So what features should you pay attention to? Who, how and under what conditions can demand a tax deduction from the state on mortgage interest?

Deduction is...

The first step is to understand what process we are talking about. What is a tax deduction for a mortgage?

This process is the return of funds paid under a mortgage loan agreement by one person or another on account of the taxes listed earlier. In other words, a person can demand part of the money for the mortgage (and for the interest paid as well) from the state.

Who is eligible

It is important to note that not everyone has the law being studied. Personal income tax refunds on mortgage interest are issued only to some residents of Russia. Must comply with state requirements.

The basic rule is to have a stable income, subject to a 13% tax. In other words, a citizen must have an official place of work. Otherwise, the deduction will not be provided.

Recipients of the refund can be both legal entities and companies. Individual entrepreneurs and firms operating under patents or with the simplified tax system cannot claim deductions. All this is due to the fact that they do not transfer 13% of their income in taxes.

In addition, it is important to note that in order to process a return, a mortgage agreement must be concluded with the citizen. Without it, the deduction simply does not take place.

Sequence

In fact, understanding the issue under study is not as difficult as it seems. Every conscientious taxpayer who is officially employed in the country is able to apply to the tax service for deductions. But in the case of a mortgage, you will have to pay attention to several features.

The thing is that a personal income tax refund on mortgage interest is not always possible. First of all, a citizen must apply for the main property deduction, and only after that - for interest. As a rule, they reimburse 13% of expenses incurred, but with certain restrictions. They will be discussed later.

Before completing the documents, the citizen must remember that if the property deduction limit has been exhausted, then he is not entitled to anything for interest on the mortgage loan. Accordingly, it is allowed to demand money only after the main mortgage has been repaid.

Can a person apply for an interest deduction without the main property? No, this possibility is not fixed at the legislative level. In practice, it does not occur in Russia either.

When to demand money

What is the period for returning personal income tax on mortgage interest? You can only request funds at a certain point in time. The right to deduct interest arises after the first transfer of money to the creditor.

Therefore, once a citizen has paid interest on a mortgage, he can demand it back. But with some restrictions. There are a lot of them in deductions.

Please note that the period for which you can get a one-time refund is 3 years. For a longer period of time, funds are not returned under any pretext.

When exactly should I apply for a deduction? A citizen can register it at any time from the moment the right to provide it arises. The tax code does not have any specific guidelines regarding when a person should file for a refund. The main thing to remember is that you can only return funds for the last 36 months. Some people prefer to file their deductions annually. This is a citizen's right, which can cause a lot of trouble. Therefore, many submit a package of documents immediately 3 years in advance.

Frequency of requests

How many times is the mortgage interest tax deduction available? How often can a citizen apply for a refund?

Answering these questions is not that difficult. It is enough to refer to the Tax Code of the Russian Federation. It states that a person can request a property deduction at any time after the grounds for receiving it arise. The frequency of requests is not limited in any way. As long as the deduction limit has not been exhausted (this will be discussed later), the taxpayer has the right to issue a refund.

About restrictions

Now again about restrictions. How much is the personal income tax refund limit on mortgage interest? This issue cannot be ignored. After all, some citizens lose the right to a refund of mortgage interest under certain conditions.

So, the mortgage deduction is limited to 3,000,000. Accordingly, a citizen will be able to reclaim no more than 390 thousand rubles in total. Such rules have been in force in Russia since 2014.

If the mortgage loan agreement was concluded before the previously specified period, the citizen is able to recover 13% of the expenses incurred for the purchase of the apartment. In practice, such scenarios are extremely rare. Therefore, many rely on 390 thousand rubles as a deduction. And by percentage as well.

One more nuance - a citizen cannot return more than the amount of transferred taxes in the form of personal income tax in a given year. Accordingly, if in 2016 a citizen paid, say, 200,000 personal income tax, then he is not entitled to more than this amount in the reporting period in the form of a deduction.

About co-borrowers

But that's not all. The return of personal income tax on interest on a mortgage to a co-borrower also has a number of features. The process of registering a deduction is no different from the actions that a person took if he were the only owner of the home. The difference lies in the amount of the deduction.

Thus, co-borrowers can return no more than 260,000 rubles. Such citizens draw up a deduction not for the mortgage, but simply for the property. Even if the apartment costs more than 2,000,000 rubles, you won’t be able to get more.

Interest division

How to divide the personal income tax refund based on interest on a mortgage with shared ownership? This issue is regulated by the owners themselves.

The point is that the division of the mortgage interest deduction is made based on the agreement of the apartment owners. They decide for themselves who and how much can return to themselves.

To divide the mortgage interest deduction, you need to agree with the remaining owners and submit an application for division to the tax authority. Otherwise, citizens will be equally transferred the funds spent on the acquisition of property.

It is impossible to transfer deduction shares to each other in case of shared ownership. Only by drawing up the agreement that was mentioned earlier.

Primary requirements

It is not difficult to obtain a personal income tax refund for mortgage interest paid. The main thing is to take into account the basic requirements of the tax authorities. Without them, a person has no rights to deduction.

Tax authorities require citizens to:

1. The presence of a targeted nature of the loan. A mortgage is issued for a specific apartment, which must be specified in the agreement. There is no way to get your money back for abstract property.
2. No tax arrears. If a citizen has a debt, it will have to be repaid. Otherwise, a response from the tax authorities regarding the decision to provide money may not come.

Important: it is not necessary to be a citizen of the Russian Federation when deducting. You must be a resident of the country. To do this, you need to stay in Russia for at least 183 days in a calendar year.

Where to go

Return of personal income tax on mortgage interest for several years or for one year is processed without much difficulty. Especially if you prepare a package of documents in advance to implement the task. We will talk about it later. Where to submit an application in the prescribed form for further consideration?

Today, the deduction can be issued:

• at the employer;
• on one's own.

Depending on the option chosen, the procedure for processing a return, as well as the authorities to which you need to submit papers, will change.

Most often, citizens file deductions on their own. In this case, you can seek help from the following organizations:

• multifunctional centers;
• tax services;
• portal "Government Services".

The Federal Tax Service departments at the place of registration of applicants are popular. Prepared documents are sent here either by mail, or they are brought by recipients of money (their representatives).

About methods of receiving

How can I request a deduction? Refund of personal income tax on mortgage interest, as already mentioned, can be issued at any time. In this case, a citizen can:

• submit documents for a refund at the end of the calendar year;
• demand funds monthly without transferring personal income tax to the tax authorities.

The last scenario is relevant for filing a deduction through the employer. In this case, the citizen does not receive cash. Instead, the refund will be expressed in the absence of personal income tax payment. So far, this innovation is not in great demand in Russia. Therefore, next we will consider filing a deduction through the tax authorities or the MFC.

Documentation

The most important and significant point is the preparation of papers for the return of money on the mortgage. If you provide an incomplete list, you may be left without a deduction. Tax authorities have the right to refuse in such circumstances.

What documents will be required for a tax deduction when purchasing an apartment with a mortgage? To do this you need to prepare:

• passports of applicants (from all citizens who have the right to deduction);
• mortgage loan agreement;
• certificates of income of citizens;
• tax return in form 3-NFDL for a particular period;
• marriage certificate (in case of joint ownership of spouses);
• payment schedule (issued by the bank);
• certificate of ownership of real estate (or extract from the Unified State Register);
• property purchase and sale agreement;
• bills and receipts certifying the fact of payment of funds for interest and the mortgage in general;
• statement;
• details of the accounts to which funds must be transferred (indicated in the written request).

All these documents are required for a tax deduction when purchasing an apartment. If at least one piece of paper is missing, the state has the right to refuse to return the money. But this does not mean that the citizen loses the opportunity to register it. Within a month from the date of the negative response, you can correct the situation and submit the missing documents without re-submitting an application for a deduction.

Important: all bills and receipts for payment of interest on mortgages must contain the applicant’s information. If a payment is made by one citizen, but a deduction is required by another, the request will be rejected by the tax authorities.

Procedure

How is a personal income tax refund on mortgage interest processed? What is the procedure in this or that case? In fact, everything is much simpler than it seems.

It is necessary to adhere to the following algorithm of actions:

1. Conclude a mortgage loan. As already mentioned, it is important to do this purposefully. Otherwise, the deduction will not be provided.
2. Collect the previously listed package of papers. Documents are provided both in the form of originals and copies.
3. Write an application for a mortgage and interest deduction.
4. Submit a request to the Federal Tax Service. It is mandatory to attach a previously prepared document package to it.
5. Wait for a response from the tax office. The letter will contain either approval or refusal with justification for the authority’s position.
6. Wait for the funds to be transferred using the details specified in the application. This process takes several months.

That's all. In fact, obtaining a personal income tax refund for mortgage interest paid is not as difficult as it seems. This process is no different from providing a regular deduction to the tax authorities.

Duration of the procedure

Another question is how long does it take to resolve the topic being studied? How long does it take to process a mortgage deduction?

The same as any other refund through the tax office. The exact timing of registration is not regulated by law - it all depends on the workload of a particular department. On average, the deduction procedure takes from 4 to 6 months. Most of this is spent on checking the package of documents collected by the citizen.

Accordingly, returning personal income tax is a rather time-consuming procedure. You should not think that the money will be transferred to the applicant soon after submitting the application in the prescribed form. We'll have to wait a while. Due to the long wait, citizens try to apply for tax deductions for several years at once.

About the application

How to correctly write an application for deduction of mortgage interest? It's not very difficult to do this. You just need to ask the tax authorities to return part of the mortgage interest paid.

The application must comply with the requirements for conducting business correspondence. Namely:

• in the upper right corner information about the Federal Tax Service, which will consider the request, is written down, information about the applicants is also written there;
• the text of the document must contain accurate information about the property and the funds paid;
• The paper ends with the filing date and signature of the applicant.

Nothing special. Have you applied for a personal income tax refund? Mortgage interest will be returned after the main property deduction within the previously specified time frame.

The text of the refund application looks something like this:

“I, (information about the applicant), ask for a tax deduction for interest on the mortgage under the agreement (agreement number) for the property (information about the apartment). I paid (overpayment amount). I ask for a refund of 13% of the expenses incurred.”

Do you need a personal income tax refund on mortgage interest? The package of documents for this operation is no longer a mystery. You can collect it and start actively processing the deduction.

​Receiving a tax deduction for mortgage interest is voluntary, but extremely important for most Russians. Today, not every citizen has a sufficient amount of money to purchase housing. For most of them, the only way to buy an apartment or house is to take out a loan. A targeted loan provides the right to receive a tax deduction on mortgage interest, provided that the documents were drawn up in Russia.

What is a deduction and who is entitled to it?

Reimbursement of personal income tax is possible only for loans aimed at the purchase of any type of housing (house, room, apartment, share in an apartment).

A mortgage is a loan issued between two parties (borrower and bank).

The maximum amount for calculating the property interest deduction for a mortgage is 3,000,000 rubles (for 2018). Thus, “mortgage holders” have the right to compensation in the amount of 390,000 rubles. (3,000,000 x 13%) on interest paid.

In other words, a deduction is an amount that reduces the amount of taxable profit, both on the cost of the purchased housing and on the interest paid to the bank for the use of borrowed funds.

Citizens of Russia and foreigners who legally carry out labor activities in our country and pay personal income tax can apply for a tax deduction.

A citizen receives from the state not the deduction amount itself in monetary terms, but a refund of the 13% income tax he pays. First, taxes included in the price of the property are refunded, after which the refund goes to the interest paid under the mortgage loan agreement.

It should be noted that the tax deduction for interest does not have to be claimed simultaneously with the housing deduction. If you bought a home with a mortgage and already took advantage of the deduction for the costs of its purchase, but forgot about the existence of the interest deduction or did not know about it, or for some time you did not have taxable income, then this does not prevent you from later Take advantage of the tax deduction for mortgage interest.

The procedure for returning personal income tax on mortgage interest

Repayment of mortgage interest can be made in a lump sum and paid either fractionally or in a lump sum. The thing is that the personal income tax refund in total for a calendar year cannot be more than the amount of income tax paid by a citizen during the reporting year in which the real estate property was purchased. For example, if you bought a home in 2010 for 2,000,000, then you can claim a deduction amount of 260 thousand rubles. But if the total amount of tax paid for this period is no more than 50,000 rubles, then you can only hope for this amount. The rest of the funds due for return will be paid over subsequent years until the entire amount is repaid.

If we talk specifically about receiving a deduction for the interest accrued on the mortgage, then their lump sum payment is possible only if the loan is fully repaid. If the loan repayment has not yet stopped, then a deduction will be provided annually at a rate of 13%, which is calculated on the amount of interest paid during the year. The period of such payments is limited only by the period of validity of the mortgage loan, and the amount is limited by the limit used to calculate the personal income tax refund, which is equal to 3,000,000 rubles, that is, the deduction will be 390,000 rubles.

Let's calculate the tax deduction for mortgage interest

Example. A potential buyer of a property plans to buy a home with a mortgage for 20 years and a cost of 3 million rubles. The bank is ready to offer the client a 12% loan rate. For the first month of fulfilling obligations, payment of the principal debt will be 12,500 rubles. The amount of accrued interest on the mortgage will be approximately 30,000 rubles. If you do the math, the borrower’s total monthly expenses related to loan repayment will be 42,500 rubles. The borrower will receive a deduction in the amount of 13% of the accrued interest amount (i.e., from 30,000 rubles). Thus, he can pay the bank RUB 3,900 less. And so on every month.

List of required documents

Since documents confirming ownership of property were provided when filing a tax return for the first time, to receive compensation you will need:

• declaration in form 3-NDFL;
• document confirming income - 2-NDFL;
• photocopy of the borrower's passport;
• application for compensation;
• mortgage loan agreement;
• account statement or payment receipt;
• loan repayment schedule;
• a certificate from the bank confirming the amount of interest actually paid.

The specified documents are provided to the tax authority at the place of residence.

If you have any difficulties or simply do not have time to fill out all the necessary documents and draw up an application for a tax deduction on mortgage interest, our on-duty online lawyer is ready to promptly help you in this matter.

The tax deduction for mortgage interest and principal can be paid in two ways: as mentioned above - through the MIFTS, allocating the total amount for the year, or through the employer - by making monthly additional payments. To apply this scheme, you must obtain a certificate from the tax office confirming your right to a benefit and submit it to your employer along with the following documents:

• document on state registration of rights to real estate;
• purchase and sale agreement;
• an application for compensation;
• a receipt for the seller to receive funds for housing.

These documents must be submitted to the employer every year to receive a tax deduction. If a citizen has repeatedly changed his place of work, then it is possible to issue a personal income tax return for the last place only from next year.

Example. Mr. Petrov bought a home in 2014 for 7,000,000 rubles, 3,000,000 of which were paid for using a mortgage loan concluded for 13 years. Interest accrued on the loan amounted to RUB 1,500,000. The income of an individual for this period is 900,000 rubles. The principal debt is greater than the maximum amount from which deduction is possible. Therefore, 2,000,000 rubles are taken into account. Thus, the amount for return will be: 2,000,000 multiplied by 13% = 260,000 rubles. - from the body of the mortgage; We multiply 1,500,000 by 13% = 195,000 - with interest. Amount of tax withholding: 900,000 x 13% = 117,000 rubles. The amount of income tax paid on wages during a calendar year does not cover the tax deduction. Consequently, in 2015 a person will receive compensation in the amount of 117 thousand rubles. And the remaining 143 thousand are transferred to the next period. A deduction for mortgage interest in the amount of 195,000 rubles can be used for 13 years, i.e. during the period of validity of the loan agreement. Such compensation is provided as interest is paid to the bank. Therefore, every year you need to take the relevant documents, in particular a certificate detailing how the loan is repaid, and submit them to the tax authority.

This example is suitable for cases of single home ownership. If there are several owners of the real estate property or it is a shared participation, then compensation will be distributed among the owners in proportion to the share of each owner. The amount due is transferred to a bank account, and then the funds are used to pay off the mortgage debt. They are not handed out. Payment documentation must be issued to the person filing the personal income tax refund.

Distribution of interest deduction when purchasing an apartment by spouses

Each spouse has the right to receive a deduction in the amount of interest paid on the loan, regardless of which spouse the payment documents were issued for. Refunds will be distributed between them as follows:

• if the housing was acquired as shared ownership, then on the basis of paragraphs. 2 paragraph 1 of Article 220 of the Tax Code - in accordance with the shares of each spouse in real estate;
• if the apartment was registered as joint ownership, then in the same proportion in which the housing deduction was distributed between the husband and wife at their request (for example, 40% and 60%, 80% and 20%, etc.). Moreover, if before this one spouse had already received a deduction for another housing, then the second family member in relation to their joint apartment has the right to count on only 1/2 of the deduction, both interest and housing.

Who is not entitled to receive a property deduction?

• Those who work “unofficially”, that is, do not pay income tax;
• Those who carry out entrepreneurial activities and use the patent tax system or simplified tax system;
• Citizens who have become the full owners of real estate paid for by other persons, as confirmed by the documentation provided (for example, checks or payment orders);
• Citizens who previously applied for a deduction for other or the same real estate, whose value is from 2 million rubles. and more, or by receiving a deduction for the interest accrued on the loan.

You can also be denied a mortgage interest deduction if you provided false information or an incomplete package of documents needed to complete it. In such a situation, the right to a personal income tax refund will appear after providing the missing documentation or correct information.

The refusal of the tax inspectorate to provide a refund of mortgage interest on any other grounds is illegal and can be appealed in court or to higher divisions of the tax inspectorate.