Paying taxes in Russia is not only an obligation. This process gives citizens certain rights. For example, taxpayers will be able to receive the so-called tax deductions. Today we will be interested in the return of personal income tax on interest on a mortgage. This process is faced by many citizens. Therefore, the right to a deduction on mortgage interest must be studied in detail. Only in this way can a citizen realize it without much labor. So what features to pay attention to? Who, how and under what conditions can demand from the state a tax deduction on mortgage interest?
The deduction is ...
The first step is to understand what kind of process is involved. What is a mortgage tax deduction?
This process is a refund of money paid under a mortgage agreement by one person or another against the previously listed taxes. In other words, a person may demand a part of the money for a mortgage (and for interest paid including) from the state.
Who is eligible
It is important to note that not everyone has the law being studied. Refund of personal income tax on interest on a mortgage is issued only to some residents of Russia. It is necessary to comply with state requirements.
The basic rule is to have a stable income taxed at 13%. In other words, a citizen must have an official place of work. Otherwise, the deduction will not be provided.
The recipients of the refund can be both legal entities and companies. Individual entrepreneurs and firms working on patents or with the simplified tax system, cannot apply for deductions. All this is due to the fact that they do not list 13% of income in the form of taxes.
In addition, it is important to note that a mortgage agreement must be concluded with a citizen in order to process a return. Without it, deduction simply does not take place.
Priority
Actually, understanding the issue under study is not as difficult as it seems. Every conscientious taxpayer who has official employment 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 the return of personal income tax on interest on a mortgage is not always possible. First of all, a citizen must draw up the main property deduction, only after it - on interest. As a rule, 13% of the expenses incurred are reimbursed, but with certain restrictions. About them will be discussed later.
Before filling out the documents, the citizen must remember that if the limit of the property deduction has been exhausted, then nothing should be paid to him for the interest on the mortgage loan. Accordingly, it is allowed to demand money only after the main mortgage refund.
Can a person make a deduction for interest 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 the return of personal income tax on mortgage interest? You can demand cash only at a certain point in time. There is a right to interest deduction after the first transfer of money to the creditor.
Consequently, as soon as the citizen paid interest on the mortgage, he can demand them back. But with some limitations. There are many deductions.
It should be noted that the period for which one-time money can be returned is 3 years.Over a longer period of time, funds are not returned under any pretext.
When specifically apply for a deduction? A citizen is able to issue it at any time from the moment the right to grant it arises. The tax code does not have any precise indications as to when a person should submit documents for a refund. The main thing to consider is that you can return funds only for the last 36 months. Some prefer to make deductions annually. This is the right of a citizen, which can cause a lot of trouble. Therefore, many submit a package of documents immediately for 3 years.
Multiplicity of calls
How many times are tax deductions on mortgage interest? How often can a citizen apply for a refund?
Answering these questions is not so difficult. It is enough to turn to the Tax Code of the Russian Federation. It says that a person can claim a property deduction at any time after the grounds for receiving it arise. The frequency of calls is unlimited. Until the deduction limit has been reached (it will be discussed later), the taxpayer has the right to issue a refund.
About restrictions
Now again about the limitations. How much is the personal income tax return limit on mortgage interest? This issue cannot be ignored. After all, some citizens lose their right to a refund of interest on mortgages under certain conditions.
So, the mortgage deduction is limited to 3,000,000. Accordingly, a citizen can recover 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 indicated period, the citizen is able to recover 13% of the expenses incurred for the purchase of an apartment. In practice, such scenarios are extremely rare. Therefore, many are guided by 390 thousand rubles in the form of a deduction. And interest including.
Another nuance is that a citizen cannot regain 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 more than this amount in the reporting period he is not supposed to deduct.
About co-borrowers
But that is not all. Refund of personal income tax on mortgage interest to the co-borrower also has a number of features. The process of applying for the deduction is no different from the actions that the person took, be he the sole owner of the home. The difference is the amount of the deduction.
So, co-borrowers can return no more than 260,000 rubles. Such citizens draw up a deduction not for a mortgage, but simply for property. Even if the apartment costs more than 2,000,000 rubles, it will not work to get more.
Interest separation
And how to divide the personal income tax return on interest on a mortgage with shared ownership? This issue is independently regulated by the owners.
The thing is that the separation of the deduction for mortgage interest is based on the agreement of the owners of the apartment. They decide who and how much can regain.
To share the deduction on interest on the mortgage, you need to agree with the rest of the owners and file a division application with the tax authority. Otherwise, the money spent on the acquisition of property will be transferred to citizens equally.
It is not possible to transfer deduction shares to each other with shared ownership. Only by drawing up the agreement that was mentioned earlier.
Primary requirements
Return personal income tax for the interest paid on the mortgage to issue is not difficult. The main thing is to take into account the basic requirements of the tax authorities. Without them, a person has no right to deduction.
Tax authorities require citizens:
- The presence of the targeted nature of the loan. A mortgage is issued for a specific apartment, which must be indicated in the agreement. For abstract property money back will not work.
- No tax arrears. If a citizen has a debt, he will have to pay it off.Otherwise, the answer from the tax authorities regarding the decision on the provision of money may not come.
Important: it is not necessary to be a citizen of the Russian Federation at deduction. 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
Refund of personal income tax on interest on a mortgage for several years or for one year is made out without special work. Especially if you prepare a package of documents in advance for the implementation of the task. About it will be told later. Where to submit the application in the established form for further consideration?
To date, the deduction can be issued:
- at the employer;
- by yourself.
Depending on the chosen option, the procedure for processing the return will change, as well as the authorities to which you need to submit papers.
Most often, citizens independently draw up deductions. In this case, you can seek help from the following organizations:
- multifunctional centers;
- tax services;
- portal "Public services".
The departments of the Federal Tax Service at the place of registration of applicants are popular. The prepared documents are sent here either by mail, or they are brought by the recipients of the money (their representatives).
About the methods of obtaining
How can I apply for a deduction? Refund of personal income tax on interest on a mortgage, as already mentioned, is issued at any time. Moreover, a citizen may:
- apply for a refund at the end of the calendar year;
- demand cash on a monthly basis without transferring personal income tax to tax authorities.
The latter scenario is relevant for making a deduction through an employer. In this case, the citizen does not receive cash. Instead, a refund will be expressed in the absence of personal income tax. So far, this innovation in Russia is not in special demand. Therefore, further we will consider the design of the deduction through the tax authorities or the MFC.
Documents
The most important and significant point is the preparation of papers for the return of money on a mortgage. If you provide an incomplete list, you can be left without a deduction. The tax authorities have the right to refuse in such circumstances.
What documents for a tax deduction when buying an apartment in a mortgage will be required? To do this, prepare:
- applicants passports (from all citizens who have the right to deduction);
- mortgage agreement;
- certificates of income of citizens;
- tax return in the form of 3-NFDL for a given period;
- marriage certificate (with joint ownership of spouses);
- payment schedule (issued by the bank);
- certificate of ownership of real estate (or extract from the Unified State Register of Enterprises);
- contract of sale of property;
- Payments and receipts certifying the fact of depositing cash on interest and mortgage in general;
- statement;
- details of accounts to which funds must be transferred (indicated in a written request).
All these documents for tax deduction when buying an apartment are required. If at least one paper is not available, the state has the right to refuse to return the money. But this does not mean that the citizen loses the possibility of its registration. Within a month from the day of the negative answer, you can correct the situation and convey the missing documents without re-submitting a deduction.
Important: on all payments and receipts on the payment of interest on the mortgage must be the data of the applicants. If the payment was made by one citizen, but the deduction requires another, the request will be rejected by the tax authorities.
Procedure
And how is a personal income tax return on interest on a mortgage arranged? 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:
- Conclude a mortgage loan. As already mentioned, it is important to do this purposefully. Otherwise, the deduction will not be provided.
- Collect the previously listed package of securities. Documents are provided, both in the form of originals, and their copies.
- Write an application for a deduction on mortgage and interest.
- Submit a request to the Federal Tax Service. To it, without fail, attach a previously prepared document package.
- Wait for a response from the tax. The letter will either endorse or refuse to justify the position of the authority.
- Wait for the transfer of funds for the details specified in the application. This process takes several months.
That's all. In fact, making a personal income tax return for the interest paid on the mortgage is not as difficult as it seems. This process is no different from the usual deduction from the tax authorities.
Duration of the procedure
Another question - how long does it take to resolve the topic under study? How long does a mortgage deduction take?
As much as any other refund through tax. The exact terms of registration are not regulated by law - it all depends on the load on a particular department. On average, a deduction procedure takes from 4 to 6 months. Most of them go to check the package of documents collected by the citizen.
Accordingly, the return of personal income tax is a rather time-consuming procedure. You should not think that the money will be transferred to the applicant shortly after submitting the application in the established form. Have to wait a while. Because of the long wait, citizens try to apply for a tax deduction immediately for several years.
About statement
And how to write an application for a deduction on interest on a mortgage? This is not very difficult to do. You just need to ask the tax authorities to return a portion of the funds paid on mortgage interest.
The application must comply with the requirements of conducting business correspondence. Namely:
- in the upper right corner information about the Federal Tax Service is registered, which will consider the request, there is written data about the applicants;
- in the text of the document must write accurate information about the property and the funds paid;
- paper ends with the filing date and signature of the applicant.
Nothing special. An application for the return of personal income tax? Interest on the mortgage will be returned after the main property deduction in the previously specified time.
The text of the refund application looks something like this:
"I, (information about the applicant), please provide me with a tax deduction on interest on the mortgage under the agreement (agreement number) for the property (information about the apartment). I paid (the amount of the overpayment). I ask you to return 13% of the costs incurred."
Need a personal income tax return on mortgage interest? The package of documents for this operation is no longer a mystery. You can collect it and proceed to the active processing of the deduction.