One part of the apartment has been owned for less than 3 years, and the other part for more than 3 years

Clients of legal advice and real estate agencies already have many questions about paying personal income tax (NDFL) when selling real estate, and there are also difficult cases. For example, if different parts of the property are owned for different periods of time.

If the period of ownership of real estate is less than three years, then you will have to pay a tax at a rate of 13% of the tax base (that is, the amount for which the real estate was sold). In this case, you can reduce the size of the tax base in one of two ways:

• reduce the tax base by the amount of expenses incurred (that is, by the amount that was paid earlier when purchasing an apartment),
• apply a tax deduction in the amount of RUB 1,000,000. It turns out that this is an indulgence for all taxpayers from the state. If an apartment costs, for example, 2,600,000 rubles, then personal income tax is 13% of 1,600,000.

IIS

The opportunity to open an individual investment account has become available in Russia since the beginning of 2015. The purpose of the innovation is to stimulate long-term investment by individuals in the domestic stock market. IIS is a brokerage account that provides the opportunity to receive tax preferences. The account owner independently chooses a preference from two possible options - a refund of personal income tax in the amount of 13% of the money invested or an exemption from personal income tax on transactions using IIS funds.

Features of IIS

To take advantage of the benefits, several prerequisites must be met:

• use the account for at least three years . Early closure of an IIS means deprivation of the right to preferences and the return of those already received. There is no upper limit on the duration of a financial instrument;
• invest an amount of no more than 1 million rubles. in year . Benefits are provided within this limit. In this case, there is no lower limit limit, up to a complete lack of investment during the year;
• trade exclusively on domestic stock exchanges - Moscow and St. Petersburg;
• invest money only in the national currency - the Russian ruble;
• use only one IIS , which does not interfere with opening regular brokerage accounts or transferring an investment account from one broker to another;
• do not change the selected deduction type once . To do this, you will need to close one IIS (subject to a three-year minimum validity period and other conditions), and then open another - with an alternative option for receiving tax preferences.

Otherwise, IIS is no different from a regular brokerage account. It is opened in a bank or brokerage company that has the appropriate license issued by the regulator - the Central Bank of the country. The easiest way to check its availability is directly on the website of the Central Bank of the Russian Federation in a special section.

Features of paying the contribution if the property has been owned for less than 3 (5) years?

1. The income tax for residents of the Russian Federation is set at 13%, for non-residents - 30% (more details about the tax on the purchase and sale of housing for non-residents can be found here).
2. To ensure that citizens do not evade paying taxes by indicating in the contract a price lower than in reality, the minimum amount from which the tax base is calculated was accepted as 70% of the cadastral value of the apartment.
   If the price in the contract is greater than this value, tax is taken from it.
3. When selling real estate that has been owned for more than a minimum period, its owner is also exempt from filling out a tax return.
4. In case of joint ownership of housing, the tax upon sale is divided proportionally. Each owner fills out his own declaration.
5. Regional authorities may reduce the minimum period of ownership of an apartment, which allows you to avoid paying taxes.

Risks and disadvantages of IIS

Like any financial instrument, an individual investment account has both obvious advantages and several significant disadvantages. It is better to consider the latter first. Most of the most serious risks and disadvantages of investing in the stock market through an individual investment account are directly related to the additional conditions and restrictions listed above. But an important issue requires their additional mention and consideration:

• lack of investment insurance . Unlike bank deposits, which are insured up to 1.4 million rubles. Therefore, investing in securities is accompanied by significantly more significant risks than opening a deposit in a bank;
• impossibility of early closure . It is important to note that before the expiration of the three-year period it is impossible not only not to close the account, but also to withdraw money from it. In other words, funds are invested for no less than three years. Any shorter-term alternatives result in deprivation of benefits and the need to return those already received;
• impossibility of simultaneous use of two or more information systems. This limitation significantly reduces the scope for maneuver and application of different investment strategies;
• strict restrictions on the currency of investments and the option of tax benefits . There are two more disadvantages directly related to the conditions for opening and maintaining an individual investment account. It is obvious that in this case, the investor’s potential opportunities are significantly limited.

Advantages of IIS

The first and main advantage of an IIS is the receipt of tax benefits. In this case, it is advisable to describe both possible options for preferences in more detail:

1. Type A. A deduction provided on invested money. Provides an annual return of 13% of the investment amount within 400 thousand rubles. As a result, the maximum benefit amount reaches 52 thousand rubles. The second important requirement is that the refund is carried out within the limits of personal income tax paid by the account owner for the same reporting period, for example, from wages or other income.
2. Type B. Exemption from personal income tax for transactions on the stock market. In this case, the entire possible investment amount within 1 million rubles is taken into account. in year. There is also no requirement to pay personal income tax on other income. But you can receive a deduction only at the time of closing the account, and after at least three years.

The first deduction option is suitable for personal income tax payers, conservative or novice investors, as well as investors who want to use the benefit annually. The second type of deduction is optimal for qualified investors who are ready to invest more than 400 thousand rubles annually, and for a long period, including non-residents of the Russian Federation.

As it was before

There was a monthly allowance before. But Federal Law No. 305-FZ dated August 2, 2019 changed the key points:

• Previously, the benefit was issued until the age of 1.5 years, now - up to 3 years;
• the criterion of need is 1.5 subsistence minimum per person, now it is 2.

Until 2021, they stopped paying benefits for a child after one and a half years and replaced it with 50 rubles. per month from the employer. Starting from the new year, the 50 ruble benefit has been completely abolished for children born on January 1, 2021 and later.

However, if the employer began paying 50 rubles per child before January 1, 2021, he is obliged to continue accruing benefits until the child reaches 3 years of age. Similarly, if after January 1, 2021, parents or other relatives of a child born in 2021 or earlier contact the employer with an application for compensation.

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Tax deductions

The tax deduction scheme is described above. Here it is necessary to describe the sequence of actions to obtain benefits and several examples of calculating the amount of preferences.

Receiving a deduction for your contribution

The account owner, by the end of April of the year following the reporting year, provides the following package of documents to the Federal Tax Service:

• application for a refund of paid personal income tax indicating bank details for transferring funds;
• tax return (drawn up in form 3-NDFL);
• a certificate of personal income tax paid during the reporting period (usually in form 2-NDFL);
• agreement to open an individual investment account;
• documentation confirming the replenishment of the IIS.

An approximate calculation of the amount of personal income tax refund is based on the following initial data:

• preference option – type A;
• account validity period – 3 years;
• The amount of the annual contribution is 400 thousand rubles. (maximum for this type of preference);
• average return on investment – ​​12%;
• the commission of the manager or broker is not taken into account.

Tax deduction on income

Can be obtained in two ways. The first is by directly contacting a broker or manager. In this case, the owner of the IIS is required to provide a certificate from the Federal Tax Service indicating that the tax benefit was not used. In such a situation, the broker acts as a tax agent and pays income from securities transactions without withholding personal income tax.

The second method applies if the income was received after tax was deducted. In this case, the investor provides the following set of documents to the Federal Tax Service:

• application for refund of withheld tax with provision of bank details for transferring money;
• tax return (drawn up in form 3-NDFL);
• documentation that confirms the right to receive preferences from the budget (usually a report from a brokerage company on completed transactions with securities).

If we use the above initial data for an approximate calculation, we get the following picture. The entire amount on the IIS before deduction of personal income tax in the amount of 1,511.73 thousand rubles. remains at the disposal of the investor and is available for withdrawal.

When is the minimum period of ownership of residential space more than 3 years?

1. When purchasing a home before January 1, 2021, the rules that were adopted at that time apply.
   Was it necessary to pay sales tax if the apartment was owned for more than 3 years? In this case, the citizen was exempt from this tax.

   When purchasing a home after January 1, 2021, the situation has changed. A minimum period of 3 years became possible only as an exception. What are these cases:

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   • The property was inherited from a close relative.

   The property was received as a gift from a close relative.

Is it necessary to pay sales tax in the listed cases? Is residential space donated by a close relative subject to tax if the period of ownership of the apartment is less than 3 years? Yes, in such a situation it is impossible to avoid paying the Federal Tax Service.

Both rules apply only to close relatives (who are so named by law), and not to relatives in general. Article 14 of the RF IC classifies as close relatives parents, children, grandparents, grandchildren, brothers and sisters (those who have both common parents or only one). Clause 18.1 of Article 217 of the Tax Code of the Russian Federation refers to this article. In addition, he considers adoptive parents and adopted children to be close relatives.

The answer to the question “do I have to pay for the sale of an apartment inherited from an uncle if the period of ownership is more than 5 years” is no, but if it is less than 3 years, then the tax is paid.

2. Housing was privatized.
3. The housing was obtained under a lifelong maintenance agreement with dependents.

In what cases is it more than 5 years?

Federal Law No. 382-FZ came into force on January 1, 2021. The period of ownership of an apartment for sale without paying tax has become 5 years. This is how it is installed if:

• The property was purchased after January 1, 2021.
• The method of obtaining real estate does not fall within the above exceptions.

Reference! In general, the period of ownership of real estate is calculated from the date of registration in the Unified State Register of Real Estate. When receiving housing as an inheritance, the period of ownership is considered from the date of death of the testator. For members of the cooperative, the period is counted from the day the last share is paid or the apartment acceptance certificate is signed.

How to open an IIS

Individuals have the opportunity to participate in transactions with securities only through the intermediation of qualified stock market participants represented by trustees or brokers. Banks can also act in a similar capacity if they have received a license from the regulator to conduct brokerage activities. The register of such organizations is posted on the official website of the Central Bank of Russia, and a link to its address is given above.

The easiest way is to find a broker, manager or bank suitable for cooperation on a specialized website.

Who is entitled to monthly benefits?

From January 1, 2021, you can receive a monthly benefit for the first and second child.
Condition - the child must be born in 2021 or later and be a citizen of the Russian Federation. The period for receiving benefits is until the day the child turns 3 years old. Another condition is income. Only families whose income per person is below two subsistence minimums for the working-age population established in the constituent entity of the Russian Federation will receive payments. Calculate how much income per month per member of your family:

Average monthly income = (family income for the year / 12 months) / Number of people

The following are recognized as income:

• salary;
• bonuses;
• income under the GPC agreement;
• pensions;
• benefits;
• compensation;
• monetary allowance.

Then compare the average income with the cost of living in the region, multiplied by two. If your income is less than two minimums, then your family can receive benefits.

For example, in Moscow, the cost of living for the working population in the 2nd quarter of 2021 is 20,361 rubles. Two minimums - 40,722 rubles. If a family consists of a mother, father and child, then their average monthly income to qualify for benefits should not exceed 122,166 rubles.

Brokers and managers

Both brokers and managers are professional participants in the stock market. They act as intermediaries between a private investor in the status of an individual and the exchange. The difference between them is the level of involvement in the client's affairs. The broker provides advice and monitors the accuracy of the investor’s transactions, and also keeps records of the latter’s funds. In other words, the degree of independence of the investor is very high.

The manager, in the full sense of the word, manages the client's investments. He decides exactly how and where to invest funds - on the basis and within the powers specified in the agreement concluded with the investor. It is important to note that the broker also has the right to sign such an agreement, which makes the difference between them somewhat arbitrary.

It is important to remember that any professional stock market participant must have a license. To check this, you can use either the registry mentioned above, or a special online service, also located on the official website of the regulator. The second option usually turns out to be faster and more convenient for a potential investor.

Scammers

It’s one thing when you have a dishonest person in front of you, it’s another thing when you come across a real scammer. If the apartment has been owned for less than 3 years, we may be talking about selling the property through nominees. Transactions are carried out very quickly so that the victims do not suspect anything. You make an advance payment, and then it turns out that “the owner is not real!” Or you may not be the only buyer of this apartment.

What can you invest in?

The mechanism for using IIS is no different from a regular brokerage account. Naturally, subject to additional conditions listed in detail above. The investor has the right to buy both securities and precious metals or currencies. Gaining access to more complex financial instruments requires passing testing to obtain the status of a qualified stock market participant.

Exceptions

When deciding where to invest, there are a few additional restrictions that apply to an individual investment account. These include:

• impossibility of fulfilling obligations on a regular brokerage account with funds from an IIS;
• a direct ban on working with dealers on the international FOREX market;
• the limit on investing money from IIS in bank deposits is at the level of 15% - only for managers (it is important to remember that with this investment option, funds are not subject to compulsory insurance, that is, all risks remain), when opening an IIS with a broker, this method of investment is impossible in principle ;
• purchase of foreign securities only on domestic stock exchanges.

What should you do to protect yourself?

First of all, you need to remember that any real estate purchase may involve certain risks and be prepared for this. It does not matter how many years the seller has owned the apartment.

In addition, you should not “rush” to very profitable offers. Fraudsters may be hiding behind such schemes. For example, if the price of an apartment is significantly lower than the market price, either immediately refuse such a deal, or you should conclude a deal with the help of a lawyer.

If your seller is married or divorced, find out when he bought the apartment: before or after the wedding. If the property was acquired during marriage, then both husband and wife claim it. In this case, ask the seller for the consent of the second or former spouse. The document must be certified by a notary.

Be sure to find out that a sane and capable person is selling you a home. You cannot enter into transactions with alcoholics, drug addicts or mentally ill people. They can, for example, sell a home without the knowledge of relatives who also have property rights. If this happens, you may be dragged through the courts. This is the best case scenario. And at worst, you will lose money.

Pay attention to whether the apartment has any redevelopment. All changes to living space must be legalized. Otherwise, problems will have to be resolved through the courts.

IIS statistics

As of the end of the first half of 2021, the total number of IIS in Russia exceeded 4.113 million units. The Central Bank of Russia provides such data on its official website. The overall dynamics of this parameter, broken down into quarters, starting in 2017 is as follows.

The diagram clearly demonstrates the rapid growth in the number of IIS. An important addition is the clear predominance of accounts opened with brokers when compared with the same indicator in relation to fiduciaries.

Another important indicator deserves special mention – the volume of investment assets placed on IIS. It also shows similar dynamics. As of mid-2021, individual accounts hold 453.5 billion rubles.

Why you need to open an IIS, even if there is no money now

There are several good reasons to start opening an IIS as quickly as possible. Among them:

• Bank deposit rates have been consistently low over the past few years . Investments in the stock market are noticeably more profitable, which compensates for the slightly higher risk;
• IIS allows you to invest in financial instruments whose reliability is comparable to a bank deposit while maintaining greater profitability. As an example, it is enough to cite bonds - both state and large corporations. The security combines high profitability, liquidity and a minimum of associated risks;
• The Russian securities market is characterized by a high level of dividends for a significant part of shares. Investments in such assets allow you to receive income both in the form of regularly accrued dividend payments and exchange rate differences in the value of the security;
• opening an IIS does not require an immediate investment of funds. But the sooner the account begins to operate, the sooner it will be possible to close it and receive the money earned as a result, as well as tax preferences. There is another quite interesting way to make money. It consists of depositing 400 thousand rubles. at the end of the reporting year. In this case, the right to deduction becomes available immediately after the start of the next one, which allows you to quickly and easily return the previously paid tax;
• IIS owners who doubt the prospects of Russian companies are given an excellent alternative to simply purchasing foreign currency in the form of purchasing shares of foreign corporations , Eurobonds or securities of foreign countries. Such assets are traded on domestic stock markets and can become the object of investment with IIS.

FAQ

What does IIS mean?

IIS is one of the types of brokerage accounts used for transactions with various instruments of the domestic stock market.

What are its main differences from a regular brokerage account?

There are two main differences between IIS. The first concerns obtaining tax benefits. The second is the need to comply with several additional conditions, for example, the minimum possible three-year validity period of the account or a limit on replenishment in the amount of 1 million rubles. annually.

How to open an IIS?

To open an individual investment account, you must enter into an agreement with a professional stock market participant who has a license from the Central Bank to conduct brokerage activities.

What are the risks of investing through IIS?

The first and main risk concerns the lack of a state investment insurance system, which exists in relation to bank deposits. Other risks relate to restrictions that must be met to obtain tax preferences.

Why does it make sense to open an IIS as quickly as possible?

Opening an IIS provides the investor with additional investment opportunities without any significant expenses. In addition, the sooner the account is opened, the sooner the minimum required three years of validity will expire.

What is the monthly benefit for a child under three years of age in 2021?

The amount of the payment is equal to the minimum subsistence level for children established in the constituent entity of the Russian Federation. At the same time, benefits are paid by different structures for the first and second children. On the first - social protection authorities, on the second - the Pension Fund. At the same time, the Pension Fund does not take money for payment out of thin air. They have a specific source - your maternity capital.

Maternity capital is the second stumbling block. Some believe that it is necessary to find another source, since the capital can be used to purchase a home and not be wasted on monthly payments. Others believe it's a good benefit for low-income families. It should be taken into account that if the maternity capital balance is less than the monthly payment, the payment is made in the amount of the actual maternity capital balance for the current month. There will be no additional payment.

Important to remember

1. IIS is a type of brokerage account that has been operating in Russia since 2015.
2. The functionality of the IIS is no different from a regular account and allows you to perform various transactions with securities.
3. There are two main differences between an IIS and a brokerage account: receiving tax preferences and several additional restrictions.
4. The tax benefit is provided according to one of two options, and the choice of the appropriate one is made by the investor himself.
5. The success of the implementation of such an investment instrument as IIS is confirmed by official statistical data, for example, the opening of more than 4.1 million units by mid-2021. similar accounts.