How to get a tax deduction for shared construction of an apartment

Agreement on shared participation in construction Agreement on assignment of rights of claim Accumulation agreement with housing cooperative

When purchasing an apartment in a new building, there are features that need to be taken into account when applying for a tax deduction.

Watch the video in which we talk in detail about what a tax deduction is when buying a home, who is entitled to the deduction, what documents need to be prepared and how they can be submitted to the tax office.

How to calculate a property deduction, and how much personal income tax will be returned to the account - using examples and explanations from experts of the online service NDFLka.ru.

When you buy housing on the secondary market, you enter into a purchase and sale agreement and immediately register ownership. When purchasing an apartment in a new building, a lot of time may pass between concluding a contract and receiving the right to housing.

In addition, the seller can be not only the developer, but also another person.

In this regard, questions arise:

• When can I submit documents for verification by the tax authority in order to receive a tax deduction for an apartment in a new building?
• Do I need to wait for the official registration of the right or is it enough to have a signed agreement in hand?
• Can the fact of full payment for housing in a new building be the basis for receiving a tax deduction?

Let's figure it out.

And don’t forget to read our article “Tax deduction when buying an apartment, house, plot of land,” where we explained in detail what a property tax deduction is, how much you can claim and what documents you will need for the tax office.

Conditions for returning personal income tax when purchasing an apartment in a building under construction

One of the ways to improve living conditions is to purchase housing in a house under construction under a DDU (share participation agreement).
The future owner of the apartment has the right to receive a property tax deduction, but under special conditions. Conditions for personal income tax return:

1. The property must be located on the territory of the Russian Federation.
2. The applicant must be a tax resident of the Russian Federation and pay income tax in the amount of 13%.
3. The housing contract must indicate the cost of housing. The amount of tax deduction will be determined from this amount.
4. It is necessary to have an apartment acceptance certificate

   . Until this document is in the hands of the owner, he will not be able to exercise his right to a personal income tax refund.

Content:

1. Calculation of the deduction amount
2. When and where to apply for a deduction
3. What documents to prepare
4. Acquisition by assignment
5. Purchasing through housing cooperatives
6. Acquisition by transfer and acceptance certificate
7. DDU + mortgage
8. Benefits for pensioners
9. When they can refuse

Is it possible to get a refund on an apartment under construction: legislation

There are no legislative exceptions that would impose a ban on issuing a return in the case of DDU. By purchasing housing under construction, everyone can get back part of the money spent.

The law allows this procedure subject to the following requirements:

• the applicant must have a white salary and tax deductions for personal income tax to the budget for the last 3 years;
• the apartment was paid for with own or credit funds;
• the right of return has not been exhausted;
• In relation to the apartment, there must be documents confirming its receipt of ownership.

The key document will be the transfer deed. It is with its presence that the legislator associates the emergence of the opportunity to issue a refund. When there is an act, there is no need to wait for the construction to be completed.

In essence, a tax deduction for DDU is a reduction in the tax base for personal income tax by the amount of the purchase of an apartment, and a tax refund is a transfer to the taxpayer from the budget of contributions previously paid from his salary.

This tax benefit should not be confused with sales deductions - fixed and expense. These are different tax concepts.

Calculation of the deduction amount

The amount of property deduction when purchasing a home is 2 million rubles (Article 220 of the Tax Code of the Russian Federation). If the purchased apartment is more expensive, a person can only return tax on this amount. The maximum amount of tax that can be refunded when purchasing a home is 260,000 rubles. This is 13% of 2 million rubles.

If an apartment under the DDU was purchased in equal shares by spouses who are taxpayers, each of them has the right to receive a tax deduction in the standard amount. For example, if the cost of an apartment is 4 million rubles or more

, each spouse can return the maximum deduction amount -
260,000 rubles
.
If the apartment costs less, the total amount spent on the purchase is divided in half and a 13% deduction is deducted from it for each spouse
.

Property deduction for finishing an apartment

According to abc. 12 subp. 2 p. 1 art. 220 of the Tax Code of the Russian Federation, the actual costs of purchasing an apartment, room or share(s) can include:

• expenses for the acquisition of an apartment, room or share(s) in them or rights to an apartment, room in a house under construction;
• expenses for the purchase of finishing materials;
• expenses for work related to finishing the apartment, as well as expenses for developing design estimates for finishing work.

However, expenses for finishing an apartment can be deducted only if the share participation agreement specifies the acquisition of an unfinished apartment (rights to an apartment) without finishing or a share(s) in it

.

If it is impossible to determine under the contract that an unfinished apartment is being purchased, and also if the contract does not indicate that it was purchased without finishing, then the tax inspectors will refuse a deduction for finishing.

The Ministry of Finance of Russia reminds us of this in letter dated August 6, 2021 No. 03-04-05/63167.

Apartment finishing works include, in particular:

• plastering works;
• carpentry and joinery work;
• interior decoration;
• wall cladding/covering, floor covering;
• installation of windows, window frames, doors.

Please note that it is not possible to take into account costs associated with the redevelopment and reconstruction of premises, the purchase of plumbing and other equipment, registration of transactions, etc.

Read in the berator “Practical Encyclopedia of an Accountant”

Simplified property deduction

When and where to apply for a property deduction under DDU

To receive a personal income tax refund under the DDU, you need to collect a list of documents according to the list together and submit them along with the 3NDFL declaration to the Federal Tax Service at your place of residence

or
online at nalog.gov.ru
To receive a deduction from your employer

, you must submit an application to the tax office, receive a Notification and submit it to the accounting department at your place of employment. An application for a deduction from the employer can be submitted to the tax office immediately after receiving the apartment acceptance certificate. No income taxes will be withheld from the employee's salary until the end of the calendar year.

But if during this period the entire amount of the tax deduction is not used, in the new year the employee will have to contact the tax service again to receive a Notification of the right to deduct. This document is submitted to the employer to extend the period during which he will not withhold income tax from the employee until he returns the full amount of the tax deduction due to him.

The right to apply for a deduction through the Federal Tax Service appears only the next year after purchasing a home. That is, if a person receives a transfer and acceptance certificate in 2021, he will be able to submit documents to the Federal Tax Service for a property deduction only in 2021.

Who can receive benefits for DDU

According to the Tax Code of the Russian Federation, not all purchasers of housing under construction have the right to take advantage of the benefit. Legislators have outlined a number of requirements that must be fulfilled. Otherwise, the money will not be returned from the budget.

Requirements for receiving a personal income tax refund under DDU:

1. The purchased housing is being built on the territory of the Russian Federation.
2. The buyer is a tax resident, that is, lives in Russia for at least 183 days a year.
3. The acquirer has official taxable income at a rate of 13% personal income tax.
4. The purchase of housing is documented. In our case, a share participation agreement is required for tax deduction.
5. Payment documents for housing payments have been saved.
6. The buyer of the apartment has a signed transfer deed or other document confirming that the developer has handed over the housing and the buyer has accepted it.

It is allowed to purchase square meters of residential building at the expense of mortgage capital, state budget subsidies and employer funds. Personal income tax is returned only from own funds and a mortgage loan. Return of personal income tax from budget subsidies, maternity capital and other targeted funds from the state and employer is not provided.

What documents need to be prepared

Taxpayers who provide a complete set of documents according to the list to the tax service can receive a personal income tax refund when purchasing housing under the DDU.

What you need to prepare:

1. Personal documents – passport, TIN;
2. Certificate of employment in form 2-NDFL;
3. Personal application for a tax refund indicating the bank details where the money for the deduction will be transferred;
4. Agreement on shared participation in the construction of a house;
5. Apartment acceptance certificate;
6. Payment documents confirming all expenses for the purchase of real estate. If an apartment was purchased with a mortgage and a person claims to receive a deduction for interest paid, he also needs to provide a bank certificate about the interest paid and a mortgage agreement;
7. 3-NDFL (tax return).

Documents are submitted in copies. You must have all originals with you.

Tax deduction amount

As in other cases, the purchase of real estate with the help of DDU is subject to a standard limitation on the amount from which the deduction is made: it is carried out with a maximum of 2 million rubles (with a tax rate of 13%, this means that you can save up to 260 thousand). If you purchase real estate for a larger amount, the deduction will apply to these 2 million, but you will have to pay tax on the remaining amount. For example, if a citizen paid 3.3 million rubles under the DDU, then in the form of personal income tax he will pay 3,300,000 x 0.13 = 429,000, and then 2,000,000 x 0.13 = 260,000 will be returned to him. Thus, the difference , in this case 169 thousand rubles, will not be compensated.

If the property is purchased by a family, the return will be available to each member to whom it is registered. The deduction is provided only once, however, if the limit of 260 thousand rubles has not been exhausted, then next time there will be an opportunity to withdraw the balance.

For example: a citizen purchased real estate for 1.4 million rubles and received a deduction of 182 thousand. This means that on the next purchase he will have the right to return up to 260 – 182 = 78 thousand rubles.

Features of obtaining a deduction for shared construction

In general, the procedure for obtaining a property deduction for shared construction does not differ from the standard one. But there is one caveat.

If you purchase an apartment with participation in shared construction, the right to a deduction appears only after the house is put into operation and a housing acceptance certificate is received.

Purchasing an apartment by transfer

The buyer retains the right to receive a deduction if the apartment is purchased under an agreement for the assignment of the right of claim. The registration procedure does not differ from the standard one, but the set of basic documents should include an assignment agreement with the previous buyer, a copy of the original DDU, receipts for payment for the property and an apartment acceptance certificate.

Purchasing an apartment through a housing cooperative

When purchasing an apartment through a housing cooperative, the right to receive a tax deduction appears from the moment the share is paid in full. When submitting documents, the main package is accompanied by a certificate confirming full payment of the share, as well as an act of acceptance and transfer of housing.

According to the acceptance certificate

The transfer deed is the main document when filing a tax deduction. In this case, the buyer does not need to wait for the procedure for registering property rights. To register a deduction to the tax office, it is enough to present the acceptance certificate.

Conditions for receiving the DDU deduction

The presence of a transfer deed for the home is the main condition for receiving the deduction. Until the developer delivers the finished housing, it is impossible to receive an income tax refund from the budget. Even if the citizen takes out a mortgage loan and regularly pays it off for several years. They receive compensation from the budget only after the housing is completely ready and handed over to the developer.

Otherwise there are no exceptions. Property tax deduction under an equity participation agreement is provided on the general terms established by Article 220 of the Tax Code of the Russian Federation.

Tax refund when buying an apartment under DDU and with a mortgage

When purchasing a home with a mortgage, the taxpayer can also recoup 13% of the amount spent on mortgage interest. This right appears immediately after the closing of a real estate purchase and sale transaction. The applicant must present a title document confirming ownership of the property, payment documents from the bank (receipts, checks, receipts), copies of the mortgage loan agreement with the bank indicating the intended purpose.

If the housing was purchased with a mortgage, the refund of the deduction will be 13% of the amount of interest on the mortgage loan paid annually by the applicant. The maximum amount of interest from which tax can be returned is 3 million rubles, that is, the maximum deduction amount will be 390 thousand rubles.

When purchasing an apartment under the DDU, the right to a tax deduction appears only after receiving the housing acceptance certificate. It is impossible to receive a deduction if the construction of a multi-story building has not yet been completed.

How much money will be returned

The amount of the deduction for the DDU does not differ from the amount of the benefit for the purchase of finished housing or for self-construction. The buyer of an apartment in a new building has the right to count on 260,000 rubles of personal income tax refund based on the actual costs of purchasing living space. Provided that the cost of the apartment is 2 million or more. By purchasing real estate at a lower price, the taxpayer will receive only 13% of the actual cost of housing.

The agreed 2,000,000 rubles include not only the actual cost of square meters, but also the following types of expenses:

• payment for the services of the developer, if this amount is highlighted as a separate line in the DDU;
• payment for design and estimate documentation for finishing work;
• payment for finishing work and materials if the apartment is rented without finishing.

You can receive 390,000 rubles of personal income tax refund on interest paid on a mortgage (target) loan or loan. Provided that the maximum amount of benefits for repaying interest on housing loans is 3 million rubles. By taking out a smaller amount for a mortgage, the taxpayer will receive a proportional refund (interest on the loan × 13% personal income tax).

If the mortgage was obtained before 2014, then the amount of personal income tax refund is determined without a maximum limit. That is, you can get a tax refund on the entire amount of interest actually paid on the mortgage. Moreover, deductions are received on a general basis for refinanced loans.

Benefits for pensioners

Unemployed citizens who receive only a pension, which is known to be tax-free, cannot receive a deduction when purchasing real estate. But there are some nuances.

If a pensioner, for example, has an additional source of income from which income tax is withheld, he can receive a deduction on a general basis.

If housing was purchased after retirement, the citizen can receive a personal income tax refund for previous years. For example, a person retired in 2021, and bought an apartment in 2021, then in 2022 he can submit 3NDFL returns for 2021, 2021, 2021 and return the tax for this period.

Contacting the tax office

In preparation for it, you need to collect the previously listed documents, and then fill out the 3-NDFL declaration and related papers. A statement is being prepared based on them.

After completing the preparation of the documentation, you need to contact the tax office and submit it there. There are two options: in person or by mail. The advantage of the first method is obvious: immediately upon transfer, a preliminary check will be carried out and, if any problems or a shortage of one of the documents are detected, this can be corrected immediately.

Sending by mail saves time, but the process of obtaining a deduction will be longer, and if something is done wrong, then only a few months later, after a desk audit, it will be possible to submit the documents again. The application and documents must be sent by a valuable letter with a list of attachments.

After a desk audit, a decision will be made on whether to provide a deduction.

The time allotted for the inspection is no more than three months, and after its completion, ten days are given to send a notification of the results. During the audit, the applicant may be called to the tax office to clarify some issues and present original documents, but these are quite rare cases.

If the application for deduction was not submitted along with the declaration and other documents, it is sent after the notification is made, and within the next month the money is transferred to the citizen. Note: if the application is submitted with a declaration, the inspection may not send a notification, but immediately transfer funds.

Payment amount

In addition to the main deduction, the amount of which is 2,000,000 rubles, a person has the right to receive a refund on the interest paid on the mortgage loan.

In this case, the state will agree to return 13% of 3,000,000 rubles. Accordingly, the amount of the tax deduction cannot exceed 260,000 and 39,000 rubles, depending on the method of purchasing housing and its cost.

Is it possible to get 260,000 rubles under an exchange agreement?

Exchange is one of the options for purchasing housing when the parties to the contract wish to exchange their property, recognizing the value of the objects as equivalent or obliging one of the parties to make an additional payment for a property of lesser value.
According to the Civil Code of the Russian Federation, the rules of purchase and sale apply to the exchange agreement, that is, each of the parties to the transaction is a seller. When purchasing property under an exchange agreement, can a taxpayer receive a deduction for the purchase of housing? Yes, if the right to such a deduction was not previously exercised in full. The practice of obtaining a deduction when purchasing money has long been formed by the Ministry of Finance and the Federal Tax Service of the Russian Federation (for example, Letter of the Federal Tax Service dated September 1, 2011 No. ED-4-3/14250, Letter of the Ministry of Finance dated March 14, 2017 No. 03-04-05/14260). Also, a deduction for the purchase can be obtained if the exchange agreement was drawn up in connection with the provision of an apartment in exchange for property in a demolished building (Letter of the Ministry of Finance dated 06/03/2014 No. 03-04-05/26663).

General rules

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By purchasing an apartment under a shared participation agreement in construction, a person has a good opportunity to improve their living conditions on favorable terms. At the same time, the legislation of the Russian Federation meets citizens halfway and guarantees the provision of a tax deduction for DDU.

In order to have the right to use the return in the future, the future owner of the property must enter into an agreement that does not contradict Federal Law No. 214, and then register with Rosreestr.

By concluding an agreement, a citizen will be able to protect himself from unpleasant surprises. The DDU has a standard form to fill out.

When signing it, you need to take into account the following features:

• The agreement must contain precise information about the timing of the transfer of the apartment to the shareholder under the deed.
• The document must contain the exact value of the property. Without this, the contract may be declared invalid. This figure will be important when filling out documents for a tax deduction when purchasing an apartment under the DDU.

Restrictions

Regardless of how you buy personal property, Article 220 of the Tax Code of Russia sets limits on the amount from which you will be reimbursed 13%.

• The maximum amount is 2,000,000 rubles, i.e. You can return up to RUB 260,000.
• And if property is acquired in shared ownership by several family members, then all of them have the right to claim a tax refund.
• Receiving this benefit is possible once in a lifetime, but if the price of the purchased property is lower than the limit amount, you have the right to take advantage of the benefit until it is completely exhausted on the next purchase and return up to 260,000 rubles. Your personal income tax.

Legal grounds for receiving

The Tax Code, in force on the territory of all constituent entities of the Russian Federation, in Article 220 establishes the procedure for obtaining and regulates the conditions under which citizens have the opportunity to receive a tax deduction provided for by law when purchasing an apartment under the DDU in a new building.

This provision is explained and confirmed by letter of the Federal Tax Service of Russia dated May 25, 2009 N 3-5-04/647 and letters of the Ministry of Finance of Russia:

• dated March 16, 2015 No. 03-04-05/13862;
• dated 03/06/2015 No. 03-04-05/12102;
• dated September 10, 2013 No. 03-04-05/37207;
• dated February 27, 2013 No. 03-04-05/7-145;
• dated December 26, 2012 No. 03-04-05/7-1442.

If you have questions or need help, please call Free Federal Legal Advice.

When to contact

With a ready set of documents, you must contact the tax authority at your place of residence at the end of the year in which ownership rights arose or the transfer and acceptance certificate was signed.

If you are required to file a tax return in Form 3-NDFL, you must submit it to the tax authority no later than April 30 of the year following the previous one. Other citizens who wish to exercise their right to a tax deduction can submit documentation to receive a deduction throughout the year. Important! The legislation does not limit the deadlines for submitting documents to receive tax deductions, but the return of paid personal income tax, in accordance with clause 7 of Article 78 of the Tax Code, is allowed only for the previous three years.

Example

If you purchased real estate in June 2021, but you decided to file the required deduction with the Federal Tax Service only in 2021, then in this case you will be able to receive a personal income tax deduction for 2021, 2021, 2019, but for 2021 you will not be able to.

How to apply?

A citizen who has entered into a contractual agreement with a development company can pay for the purchase of real estate using personal funds or obtaining a mortgage. Confirmation of a person’s participation in the relevant legal relationship is necessary to verify the amount of the transaction.

A person’s participation in shared construction must be confirmed by an agreement between him and the construction company. This agreement must be drawn up in the form prescribed by law and registered with Rosreestr.

You can confirm ownership of real estate using:

• certificates, provided that the apartment is registered as a citizen’s property before July 15, 2021;
• extracts from the Unified State Register of Real Estate in case of later registration of living space.

The right to dispose of real estate with unregistered ownership is certified by an act of acceptance and transfer of the corresponding object. The paper is signed by the citizen and the development company. To receive a tax deduction, you will need to collect a certain package of documents.

Where to contact?

To receive benefits, you will need to contact the Federal Tax Service of the Russian Federation. You must submit documents at your place of registration.

Required documents

To be able to receive a tax deduction, a citizen will be required to collect and submit the following documents to the tax authority:

• DDU;
• document confirming ownership;
• extract from the Unified State Register of Real Estate;
• act of acceptance and transfer of real estate;
• documents confirming the payment of funds to pay for housing;
• statement;
• income certificate;
• declaration.

If a mortgage was issued, you will additionally need a loan agreement and other papers from the bank.

A sample income certificate in form 2-NDFL is here.

Submitting an application

An application for payment is submitted to the Federal Tax Service of the Russian Federation. However, before going to the organization’s branch, a citizen must collect a package of documents.

A sample application for a tax deduction is here.

When can I get it?

The deduction is provided if the citizen has documents at his disposal that confirm the expenses for the purchase of real estate, or there is a transfer deed, as well as a certificate of ownership of the living space.

It may take several months for your application to receive a tax deduction to be processed.

Read who is entitled to a professional tax deduction. How is the child tax credit paid? Information here.

How to get a tax deduction for apartment renovation? Details in this article.