It has long been known that the purchase of an apartment gives the right to reimburse the state for part of the money spent. However, not everyone is aware that you can also receive income tax refunds during the construction of a private house. Thus, it is possible to "sit on two chairs at once": to build the house of your dreams and return part of the money spent on construction. The procedure for such compensation is established by Article No. 220 of the Tax Code of the Russian Federation.
Who will be refunded taxes for the built house
Right to income tax refund when building a private house, not everyone has it. Actually, there are not many conditions, only three. In order to carry out a similar procedure, you need:
- Be a citizen of the Russian Federation or have the right to officially reside and work in the state for at least 183 days a year;
- to be officially employed and deduct the corresponding income tax from his earnings;
- to collect all the necessary documents and submit them for consideration and verification to the tax office.
When the deduction is not provided
There are also conditions under which income tax is not refunded during the construction of a private house. For example, such:
- You did not formalize the construction;
- all or some payments were paid at the expense of budgetary or subsidized funds;
- The right to tax refunds was used earlier;
- You did not build the house “from scratch”, but acquired an object of unfinished construction;
- your employment informally, you get paid "in an envelope";
- no documents confirming the costs;
- You paid for services, for example, to relatives.
Important! If you get unfinished and still count on the return of personal income tax, then the contract should clearly state that the acquired housing is recognized as an object of incomplete construction, unsuitable for housing and needs to be finalized.
What is included in the construction costs
If you plan to receive an income tax refund during the construction of a private house, be sure to keep all documents that can confirm your expenses. The costs may include:
- checks and payments for construction and decoration materials;
- receipts for payment of the development of design documentation and estimates;
- bank statement for the purchase of unfinished;
- copies of contracts for the provision of construction services and finishing works;
- payments to utilities for the conduct and connection of communications (electricity, water, gas, sewage).
Attention! All building materials should relate to the construction of a house. If you purchased, for example, logs for building a bath, this money will not be included in the estimated amount.
Tax deduction for the construction of a summer house
If you decide to receive tax deduction for the erected cottage, you need to take into account some subtleties. The tax code of the Russian Federation directly indicates the fact that personal income tax refunds can only be obtained for the construction of a residential building. This means that if your documents indicate that a summer house or a garden house was under construction, it will be problematic to get part of your personal income tax back.
In order to avoid difficulties, the documents should indicate exactly the “residential building”. Moreover, the room should correspond to this name, that is, have the main premises and utility rooms. It is worth remembering that property privileges can be issued not only for a building, but also for a land plot.
Is preferential deduction possible on condition of shared construction
If you are not building a house for yourself, but an apartment, then it is most likely a question of shared construction. An income tax refund is also possible for you. Here in the expenses you can include the following items:
- development and preparation of the project and estimates;
- acquisition of materials for construction;
- Finishing and construction costs
- laying the necessary communications.
At participation in shared construction It should be especially careful. Sometimes difficulties arise:
- if more than three years have passed from the moment of signing the agreement on shared construction until the day the premises were commissioned, it will most likely be necessary to return the personal income tax through a court;
- sometimes the developer instead of an agreement on shared construction concludes some other type of agreement - in this case, the procedure for returning personal income tax is greatly complicated.
There are situations when there are difficulties with obtaining ownership of the constructed housing. This may be due, for example, to the dishonesty of the developer; if you drag it out with this issue, you can lose a significant part of the funds to be reimbursed due to inflation.
Documents
In order for the whole procedure to go as quickly and simply as possible, you need to carefully prepare all the documents. To refund income tax you will need:
- an agreement on the purchase of a building plot or the sale of unfinished buildings;
- any bills, receipts, checks, receipts, bank statements confirming the amount of your expenses;
- acts of acceptance of work performed by construction companies or public utilities (for construction, communications, decoration and so on).
Other papers will also be needed:
- application for income tax refund;
- a tax refund application paid by you;
- declaration in the prescribed form 3-NDFL;
- certified photocopy of all pages of a civil passport;
- 2 – PIT (this is a certificate of income from the place of official work).
Features of personal income tax return
The tax code of the Russian Federation, more precisely, article 88, requires that a desk audit be completed within a period not exceeding 90 days from the date of submission of the declaration. This means that in three months not only she, but all the documents attached to her will be carefully examined.
After the specified time, the tax inspector will decide on the return of personal income tax and notify the taxpayer of the results of the audit. If all documents are in order, it will be returned. Otherwise, the paper will be returned for revision. You will have to either correct the flaws or challenge the decision in court.
The income tax return itself has several nuances. The new edition, which has been operating since 2014, has some changes that significantly facilitate the life of Russians. For example, if previously a privilege was provided only once and did not depend on the cost of housing, now the order of payments is established with reference not to housing, but to its price.
In general, a taxpayer is entitled to a refund of 13% of the costs incurred. At the same time, the maximum amount with which personal income tax is reimbursed cannot exceed 2 million rubles. That is, no matter how much the taxpayer costs the construction of a new house, the most that he can return is 260 thousand Russian rubles. But if the actual cost of housing was less than 2 million, the missing amount can be “collected” the next time, when constructing another housing. Thus, houses can be built as many as you like, but the total amount of the returned personal income tax will not exceed 260 thousand.
Another innovation concerns housing purchased (built) in a marriage. Now the legislator equalizes the rights of both spouses. Both husband and wife can apply for a personal income tax deduction. So the family will receive a total deduction from the total amount of 4 million rubles.
Personal income tax return options
To get back your personal income tax, you can go in two ways. The first is to contact the tax office. There you need to provide a full package of documents for consideration.About which papers will be needed, it was said above. In this case, the income tax refund period takes at least three months. After the decision is made, the tax authority must additionally submit the details of the current account to which the funds will be transferred.
The second way is to contact your employer. To do this, go to the IFTS with a statement about the need for a deduction. At the same time, it is required to provide the tax authorities with all the documents mentioned above. The only exception is the declaration. In this case, there is no need to submit a 3-NDFL form. After receiving a response from the tax authorities, it must be taken to the accounting department of the company where you work, and write a corresponding statement there. All further calculations are the responsibility of accountants. Now, personal income tax from your salary will not be deducted until you select the full amount of benefits.
