How to get a tax deduction when buying an apartment

How to get a tax deduction when buying an apartment

Getting a tax deduction when buying an apartment is very important event because due to tax benefits, you can significantly reduce costs when purchasing real estate.

According to the Article 220 of the Tax Code of the Russian Federation, every citizen of the Russian Federation has the right to refund 13% of the cost of buying, building and repairing housing. This applies both to the purchase of an apartment and other types of housing, for example, a private house or room, as well as the construction of housing on your own plot.

What are the ways to get a tax deduction when buying an apartment? Let's figure it out.

The first way is through the employer. If you want to use this method, you need to notify the accounting department of your intention to receive a tax deduction. At the same time, personal income tax will not be deducted from you until you have exhausted the required amount.

The second way is through the tax service. Everything is somewhat simpler here. Once a year, you file a declaration or sign an application for a simplified deduction, and the money that you transferred in the form of personal income tax last year is returned to you.

However, in order to receive a tax deduction, several conditions must be met. First, you must be a tax resident of the Russian Federation. Secondly, you must reside in Russia for at least 183 calendar days for the next 12 consecutive months. Finally, you should be able to document the fact of payment for the apartment. The payment can be either full or partial, but must be confirmed by the relevant documents.

What amounts can be refunded thanks to the tax deduction? Let's calculate. For example, when buying a home, the amount of tax, taking into account the rate of 13%, can be 260 thousand rubles, and from the payment of mortgage interest – another 390 thousand. Thus, in total, a person can return 650 thousand rubles.

Thus, the tax deduction when buying an apartment is a great opportunity to save money when buying a home. The main thing is to comply with all the necessary conditions and provide all the necessary documents.

We hope this information was useful to you!