In Russia, many citizens have the right to apply for the so-called tax deduction. This service is provided for some expenses. For example, below we consider the tax deduction for mortgage interest and for related lending in general. What it is? Who is eligible for the deduction? Where to go for help? And what if the refund is refused? We will need to deal with all this further. Enough to study the Tax Code to shed light on the situation.
Definition
First of all, we have to understand what procedure we are dealing with. What is commonly called a tax deduction?
This is how the process of returning part of the money for certain operations against taxes paid is characterized. That is, making some purchases, a citizen will be able to demand from the state reimbursement of expenses in small quantities.
Tax deductions are as follows:
- property;
- on a mortgage;
- on mortgage interest;
- for studying;
- for treatment.
More and more often in real life there is a tax deduction on mortgage interest. This refund cannot be issued without a mortgage. Therefore, further we will consider both operations. They are made approximately the same.
Who is eligible?
Now about the requirements that the state puts forward to the recipients of funds. Not every person will be able to reimburse part of the cost of mortgage lending.
This service is available subject to the criteria:
- citizenship of the Russian Federation;
- the presence of constant earnings;
- personal income tax payment in the amount of 13% (no more, no less);
- age - not less than 18 years;
- costs are borne by the applicant
Accordingly, pensioners and unemployed citizens will not be able to receive a tax deduction on mortgage interest. Like any other return. This is a normal occurrence.
Limits
The amount of tax deduction on mortgage interest is limited. The thing is that a citizen cannot regain more than he listed in the form of personal income tax. In general terms, the limit on interest is 13% of additional costs. And there are no other options. The size of the deduction may not exceed 390 thousand rubles. But this is not all the limitations!
In the case of a refund for the main loan, the limit will be 360,000 rubles. It is assumed that the citizen will demand a property deduction.
Priority
It is worth paying attention to one more nuance. We are talking about the priority of providing refunds.
The current legislation of the Russian Federation obliges citizens to apply for a tax deduction on mortgage interest after the applicant has been granted a property type refund. Therefore, the procedure for submitting the appropriate request will have to start from afar.
Circulation period
Need a tax deduction for an apartment? Almost every citizen will be able to return interest on the mortgage. In any case, if a loan is issued to the applicant, then it meets all the requirements listed above.
When can I apply for a refund? After the first spending. And for what period return the funds? The limitation period for deductions of any type is 3 years.
Accordingly, the submission of applications after the specified period does not take place. It is not worth rushing to return funds on a mortgage, but it is also impossible to delay the operation. Sometimes people forget about the limitation of appeals, which leads to the inability to exercise their rights. They are not subject to recovery.
Where to go
Where to return the tax deduction for mortgage interest? Which organizations should be contacted with the appropriate request?
Everyone answers this question. The following options are possible:
- filing applications through the MFC;
- direct appeal to the local authority of the Federal Tax Service.
In fact, everything is simpler than it seems. And even a person who is poorly versed in paperwork can cope with the task. In real life, the population most often turns to the Federal Tax Service. So the process of processing the return can be slightly accelerated.
Terms of consideration
Some citizens are interested in how quickly a tax deduction on mortgage interest is provided. It is important to understand that the service being studied is not fast. Have to be patient.
On average, it takes about 4 months to review an application for any type of tax deduction. Of these, 2 are spent on checking documents, and the rest of the time is allocated to transferring funds to a citizen.
Failures: is there a right?
Getting a tax deduction on mortgage interest with proper preparation will not cause any particular trouble. Can they refuse such a service?
Yes. Such cases are not rare. The applicant may be denied any deduction. Why?
The most common circumstances are:
- the entire stock of funds on returns of one type or another has been exhausted;
- an incomplete set of documents is submitted;
- presented papers contain errors and inaccuracies (may be fake);
- a citizen does not meet the criteria listed above.
Mortgages do not have the right to refuse a tax deduction on interest just like that. The FTS should justify its actions.
If the reason lies in the absence of certain documents (about them a little later), then you can convey the necessary papers without re-submitting the application. This takes up to 30 days. The applicant did not meet this deadline? Then you have to start all over again.
Documents for the main return
Getting a tax deduction for interest on a mortgage is not difficult. But, as we have said, you need to start with a basic return. We are talking about a property tax deduction.
In order to request it, a citizen must have with him:
- statement;
- passport;
- certificate of registration;
- contract of sale;
- receipt indicating payment;
- account details for the transfer of funds;
- income statements;
- form 3-NDFL;
- certificate of ownership of the property;
- SNILS (preferably);
- labor book.
All papers are presented with their copies. Each law-abiding citizen will have the listed certificates and documents. Without them, the request for a refund will simply not be accepted.
Action algorithm
Need to file an application? The tax deduction (interest on the mortgage or the main refund is made out - this is not so important) provides for a certain algorithm of actions. If you adhere to a small guide, you will be able to quickly cope with the task.
In general, the operation can be represented approximately like this:
- Collect a specific package of documents. The list of securities for the main mortgage deduction, we have already studied. Documents for interest will be discussed later.
- Fill out a return application. The form can be taken from the registration authority.
- Contact the MFC or the Federal Tax Service with the appropriate request.
- Wait for a response from the tax authorities.
- In the case of a positive decision, it remains only to wait until the funds are transferred to the citizen. This happens approximately 1.5-2 months after the notification of the applicant.
Was the person refused? You can study the cause of this phenomenon and, if possible, eliminate the problems. Then the refund will certainly take place.
Percent
In reality, everything is much simpler than it seems. But if you require a tax deduction on mortgage interest, the list of documents will be slightly different from the previously listed securities.
How exactly? Nothing specific is required. The citizen must have the following papers with him:
- identification;
- document indicating registration;
- mortgage agreement;
- loan interest payment schedule;
- income statements (any form);
- employment record (preferably);
- title paper for property acquired in a mortgage;
- statements indicating the transfer of funds as interest on a mortgage;
- tax return.
There should not be any difficulties in collecting the listed securities. Documents for the tax deduction on mortgage interest should be prepared in advance. They also include the details of the account to which funds must be transferred. The relevant data is usually indicated in the deduction application.
Common property
It is important to understand that the situations described earlier are relevant when the applicant is the sole owner of the housing. But what if the apartment or house has several owners?
Documents for deduction of tax type on a mortgage (and interest including) are supplemented by relevant evidence. The application will have to register who and in what shares will receive a refund.
At the same time, different principles can be applied for property deduction and deduction for interest on mortgages. For example, in the first case, citizens receive money in the amount of 50/50, and for interest - 30/70%. This issue will have to be discussed in advance with other homeowners.
Shares and Mortgages
Things are somewhat different with shared ownership. The list of documents required for the return will not change. But the conditions for the distribution of funds will be adjusted.
How exactly? Mortgage repayments will be distributed according to the shares held by citizens. Other proportions are not taken into account here. Therefore, citizens will receive exactly as much as is provided by law, according to existing shares in the property.
Additional references
In some cases, applicants are required to submit extended documentation. What is this about?
To apply for a tax deduction on mortgage interest, the following certificates and extracts may be useful to a citizen:
- birth certificates of children;
- certificate of marriage or divorce;
- request for determination of shares in property;
- TIN;
- contract and checks for the provision of services for the repair of residential premises.
It is advisable to prepare all these papers in advance. Then, with the registration of the tax deduction for mortgage interest, there will be no problems. With timely preparation, the probability of failure will be minimal.
Summary
Now it’s clear what it looks like to receive a tax deduction on mortgage interest. This operation is not available to everyone. But if such a right exists, it is better to use it.
There is no need to delay preparation for the procedure. The right to a refund for mortgage interest arises from the moment the first money is transferred for them. And the billing period is limited, as we have already found out, by 3 years.
If you follow all the recommendations listed above, then there will be no refusals to provide the service. A person was refused a reimbursement of mortgage expenses? We need to study the notification from the Federal Tax Service and correct the situation for the next month. If this is not possible, you can forget about the deduction at the moment.
The right to a refund on a mortgage and interest will take place until all the limits are exhausted. After that, it will not work to demand reimbursement from the state. Failure in this situation will be completely legal.