In Russia, getting your own home is not so simple. Many are forced to take loans for housing and apply for a mortgage. It is the latter scenario that occurs most often in practice. Today we have to figure out how to return the interest on the mortgage and whether it is possible to do it at all. What operation are you talking about? What exactly does it provide? Where are deductions made? In reality, everything is much simpler than it might seem at first glance. Basic knowledge of the Tax Code of the Russian Federation will help to understand all of these features.
Mortgages and deductions - is it real?
Is there really a repayment of interest on a mortgage in Russia? And is it possible, in principle, to recover money for a mortgage agreement?
Modern legislation provides for these operations. Citizens can apply for a deduction both for a mortgage agreement and for its interest. This right is indicative and is exercised at the discretion of the applicant.
Who has the right
And who can recover part of the costs of an apartment purchased on a mortgage? Are all citizens entitled to this?
Not. The Tax Code of the Russian Federation secures the studied opportunity only to homeowners. In this case, citizens must meet certain criteria. Namely:
- have income taxed at 13%;
- work during the period of payment of the mortgage and interest on it;
- to come of age.
So, citizens who are not employed or do not pay personal income tax 13% can not demand deductions from the state.
The beneficiary is both individuals and entrepreneurs. But an IP that draws up interest on a mortgage is a rarity. This is due to the fact that Russian entrepreneurs are trying to use special taxation regimes that do not provide for the payment of 13% tax.
Where to draw up
Where to go to exercise their rights? How to return interest on a mortgage? What bodies solve this issue?
Today you can independently choose the place where to submit the application in the established form. The thing is that with tax type deductions they work:
- federal tax authorities;
- employers
- multifunctional centers.
More often than not, citizens simply go to the Federal Tax Service and fill out all the deductions put by them there. This is the most simple and correct solution.
What can be returned?
What percent can be returned from a mortgage? And in what specific sizes? These issues are of concern to all citizens who have bought housing under mortgage agreements.
To date, Russia provides for several deductions related to the mortgage. Citizens can return:
- property deduction (from the amount of the mortgage);
- interest on a paid mortgage.
No further development is provided for. These are all deductions that can be returned when applying for a mortgage.
About Prescription
The processes studied have many features. When can I return interest on a mortgage? How long is the statute of limitations of appeals to the Federal Tax Service for the implementation of the studied law?
Citizens can return interest on a mortgage agreement throughout the entire payment period. But there are some limitations.
The limitation period for tax type deductions is 36 months. This means that a return can be issued immediately in 3 years. Older periods are not considered by tax authorities.
Experts recommend returning money annually. This is not very convenient, but it will be possible to get the maximum funds without the risk of loss.
Payout amount
How to return the tax rate on a mortgage? How much in principle can be obtained from the state in the implementation of the law being studied?
Today, the deduction tax rate is 13%. That is how much a citizen can regain for his mortgage agreement and at its interest. Only with some restrictions.
The maximum amount of a property type return is 290,000 rubles. A mortgage agreement allows you to return up to 360,000 rubles maximum. This means that getting more than the second figure for interest on the mortgage will not work.
Multiplicity of calls
How often can I apply for deductions? Are there any restrictions on this?
When thinking about how to return interest on a mortgage, a citizen should remember that he can contact the Federal Tax Service infinitely many times to exercise his right. The only limitation is the limits on the money returned.
Based on all the foregoing, we can conclude that the taxpayer has the right to receive 360 thousand rubles on a mortgage. Until this limit is exhausted, deductions will be issued. But as soon as a citizen crosses this line, he will lose the right to mortgage deductions.
Tax dependency
Is it possible to return 13 percent from a mortgage? Yes. And the interest paid on the loan, too, will be able to get back. Make it easy.
We already know what restrictions apply to tax type refunds on mortgages and their interest. But there is one more important nuance - the taxpayer cannot claim payments exceeding the personal income tax listed earlier.
What does it mean? If in a given tax period a citizen transferred less taxes than it should be in the form of a deduction, then the surplus will not be returned. Suppose that for a year a citizen paid 50,000 rubles in the form of personal income tax, and a refund of 60,000. In this case, only 50,000 will be returned to the taxpayer. And nothing more.
Features
Mortgage interest repayment is an operation that has many features. Some taxpayers do not even suspect.
For example, when buying an apartment in shared ownership, all owners who meet legal requirements may claim a refund. All adult working citizens can exercise their right to reimburse mortgage expenses.
But sometimes parents acquire property for their minor children. In this situation, legal representatives can also issue deductions for the mortgage. And this is even provided that the parents are not the owners of the acquired residential property.
If issued through the employer
A little later we will talk about how to return interest on a mortgage through the tax. This is the most common scenario. But first, it’s worth exploring the features of cost recovery through the employer.
What happens in this case? Citizens receiving deductions at the place of employment are exempt from personal income tax. That is how the return of money paid for a mortgage and its interest will be expressed.
If you act through the MFC or the Federal Tax Service, the applicant will be able to instantly reimburse expenses and receive funds in a bank account. They are allowed to be used at one’s sole discretion.
It is because of this difference in the provision of deductions that citizens try to act through the tax authorities.
Waiting time
Is it possible to return 13 percent from a mortgage? More details about this process will be discussed later. First you need to consider how much time is allocated for this operation.
Making tax deductions in Russia is considered a rather time-consuming and time-consuming procedure. Therefore, applicants will have to be patient.
On average, the period for receiving money for a mortgage and its interest in the form of deductions varies from 2 to 5 months. Most of the time is devoted to checking the submitted documents. And only 1.5-2 months, the recipients are waiting for the direct transfer of money to the account at the details specified in advance.
Additional issues
Often many people ask: "I'm paying a mortgage. How to return interest?". The answer to this question provides a lot of features and nuances. Despite the fact that a citizen has the right to receive tax deductions, he may be denied under certain conditions.
Sometimes problems arise in people who have taken a loan of an inappropriate type. How to return interest on a mortgage? For this, the bank must issue a targeted loan. That is, on a specific property. Otherwise, the Federal Tax Service may refuse at the age of money on basic mortgage payments, and their interest.
Reasons for refusal
Mortgaged apartment? How to return 13 percent of personal income tax? To do this, you will have to take into account all the reasons why the Federal Tax Service may refuse to provide funds. Fortunately, this scenario is rare in practice.
In addition to non-purpose loans, the following circumstances may serve as reasons for refusing to reimburse funds under mortgage agreements:
- the provision of fake or inaccurate documents;
- lack of a full package of securities for reimbursement of funds;
- the applicant does not pay personal income tax in the prescribed amounts.
In most cases, citizens face refusals due to the presentation of an incomplete list of documents. This is the smallest problem taxpayers can face.
The borrower will have a month to eliminate the reason for the refusal. If he meets the deadlines, re-submitting an application for a refund for the studied transaction is not required. Otherwise, it will be necessary to re-form the package of documents, write a request for reimbursement of mortgage expenses and contact the Federal Tax Service. Thus, the procedure for receiving money will increase by a few more months.
Step-by-step algorithm of actions
How to return the interest paid on the mortgage? If you prepare correctly, you can easily translate the idea into reality. The main thing is to follow some algorithm of actions. It will help to avoid unforeseen situations when contacting the Federal Tax Service.
How to return interest on a mortgage through a tax? This will require:
- Make a target mortgage agreement with the bank.
- Buy an apartment and pay a mortgage along with interest. After making the first payments (next year), you can contact the Federal Tax Service minus.
- Generate a package of documents requested by the tax authorities. It is directly dependent on the circumstances. Below is an approximate list of required securities.
- Submit a written request to the Federal Tax Service for the repayment of interest on a mortgage. It is better to immediately draw up a property deduction and interest.
- Wait until the tax authorities verify the documents and decide on the request. Information is provided by sending a tax notice to the applicant's mailing address.
If the Federal Tax Service decided to provide a refund, you can simply expect the transfer of funds. Otherwise, as has already been said, a citizen will either have to accept the refusal or eliminate its causes and try again.
Similarly, any deductions are issued. The difference lies only in the documents attached to the corresponding application.
Basic mortgage agreement
How to return interest on a mortgage at Sberbank or any other bank? Step-by-step instructions have already been presented to our attention. It really helps to avoid many problems with processing refunds for certain operations.
It should be noted that usually citizens first draw up deductions for the main mortgage and only after it work with the interest paid. So you can be in the most favorable position.
It’s clear how you can return the mortgage interest tax. Documents for registration of the main mortgage deduction will require the following:
- passports of all property owners;
- certificate of ownership of the apartment;
- extract from the Unified State Register;
- income statements;
- tax return;
- mortgage agreement;
- marriage certificate (with shared ownership with spouse);
- birth certificates of all children (if the mortgage provides for shares for children).
All listed papers are presented with their copies. In addition, citizens must attach checks and receipts indicating the payment of a mortgage. You will also have to make an application for the exercise of your rights, in which the applicant will indicate the bank details. It is for them that reimbursements will be made.
Interest
And how to return interest on a mortgage? In general, the operation is no different from the provision of any other tax deduction. The main thing is to correctly prepare a package of documents for this procedure.
Today, in order to recover 13% of the interest paid on the mortgage, you need to bring:
- passport;
- certificate 2-personal income tax;
- mortgage agreement;
- receipts indicating payment of a loan and interest on it;
- mortgage repayment schedule;
- tax return;
- extract from the Unified State Register;
- certificate of ownership of the purchased housing (if any).
As already mentioned, in addition, the applicant may be required to:
- Marriage certificate;
- birth certificates of minor children;
- adoption documents.
Perhaps this is all that is required of a citizen. For more accurate information, contact your local tax office. They will tell you exactly what documents will be required to reimburse the costs of a mortgage in certain circumstances.
To summarize
In Russia today it is allowed to return part of the money for some operations. Most of them are related to real estate. A mortgage is a serious obligation that a citizen makes. After its registration, the taxpayer may contact the employer or the Federal Tax Service to reimburse the costs incurred. Nobody can take this right away.
The recipient of funds is both entrepreneurs and individuals. In case of improper loans, deduction may be denied. This is due to the fact that in this case it is problematic to prove for what purposes the funds issued by the bank were spent. Therefore, experts recommend executing targeted mortgage contracts.
The mortgage allows you to return part of the money under the main loan agreement, as well as part of the interest paid on it. It is allowed to demand deductions throughout the entire period of loan repayments, but only for no more than the last 3 years.
We figured out how to repay interest on a mortgage. And how can you recover the costs of the main loan agreement, too. These are very long procedures, which with proper preparation almost do not cause trouble. The main thing is to collect documents for the implementation of the studied law. Otherwise, this process does not cause any questions and problems.
Is it worth it to reimburse your mortgage expenses? Yes, if a citizen has a reason. This right is offered to all residents of the Russian Federation subject to certain conditions. And it is recommended to implement it in order to save personal money.
