Limits on most tax deductions (for education, for treatment, etc.) are established only within one calendar year: each calendar year the “limit” is reset, and the deduction can be received again. In contrast, the property deduction when buying a home contains more serious restrictions: both the maximum amount of the deduction and the number of times it can be used during one’s lifetime are legally limited.
Until 2014, there were restrictions according to which tax deductions for housing purchase expenses and loan interest could be obtained only once in a lifetime and only for one housing property. Since 2014, the deduction was allowed to be received for several residential properties, but the new rules were allowed to be applied only to new transactions (concluded after the entry into force of the new law). In this regard, many questions arose: in what cases what deduction restrictions apply? If you used the deduction earlier, in what cases can you “receive” it when purchasing a new home? Is it possible to get a deduction for credit interest if you previously only used the deduction for the purchase of housing?
In this article we will try to answer all these questions.
Please note: The key factor on which the property deduction limits depend is the date of purchase of the home for which you receive (or want to receive) the deduction. The “date of purchase of housing” for the purposes of this article should be considered: - the date of registration of ownership of housing according to an extract from the Unified State Register of Real Estate when purchasing under a sales contract; — the date of the transfer deed when purchasing housing under an agreement of shared participation in construction.
Deduction limits for housing purchased before January 1, 2014
If you purchased housing before 2014 and received (or plan to receive) a property deduction for it, then the “old” rules apply to you, according to which the deduction can be obtained strictly only for one property (paragraph 27, paragraph 2, paragraph 1, art. 220 of the Tax Code of the Russian Federation as amended, valid until 01/01/2014) and in an amount of no more than 2 million rubles. (260 thousand rubles to be returned). Moreover, even if you received a deduction less than the maximum amount, you will not be able to receive it additionally when purchasing another home.
Example: In 2008, Levashov I.I. bought an apartment for 500 thousand rubles. and received a tax deduction for it (returned 65 thousand rubles of taxes paid). When purchasing an apartment in 2021, Levashov I.I. will not be able to use the deduction again, since until 2014 the property deduction was provided only once for one housing property
The credit interest deduction for housing purchased before January 1, 2014 had no restrictions on the amount (you could return 13% of all mortgage interest paid), but it could only be received on the same property for which you received the principal deduction (deduction for purchase expenses). This is due to the fact that until 2014, the main property deduction and the interest deduction were not separated and constituted a single type of deduction (Article 220 of the Tax Code of the Russian Federation, as amended, valid until 01/01/2014).
Example: In 2012, Ivanchenko A.A. I bought an apartment and received a tax deduction for it. In 2013, Ivanchenko bought another apartment with a mortgage and wanted to get a deduction on loan interest. The tax office legally denied him the deduction, since for housing purchased before January 1, 2014, the main deduction and interest deduction could only be received for a single housing property.
However, it is worth noting that if you purchased a home before January 1, 2014 and only took advantage of the deduction for purchase expenses, then you can receive a deduction for credit interest on other housing, but only if it was purchased after January 1, 2014. We will look at this situation in detail below in the section - Is it possible to get a deduction for credit interest if you previously only used a deduction for purchase expenses?
Documents for registration
In order to receive compensation for the tax paid, it is necessary to prepare a certain list of papers, which is given in the table below.
| Name | Characteristic |
| Compiled statement | Filled out in accordance with the established form, which is established by the employer or the Tax Service. |
| Declaration 3-NDFL (downloadable) | The data is entered into the prescribed form. Information must be provided for a specific reporting period. |
| Certificate of income in form 2-NDFL (downloadable) | The document confirms profit for a certain period. This certificate is needed so that the Tax Service can track income and expenses, determining the legality of receiving a deduction. |
| Bank account details | It is possible to obtain a statement from any bank in the country, which will contain information about the account to which funds from the Federal Tax Service will be transferred. |
The list of documentation may change depending on the type of tax deduction.
You can download all the forms and sample documents that may be required when submitting an application for a refund using the links below:
- The service agreement form is here;
- Application for social tax deduction - download link;
- Application for property tax deduction;
- Application for professional tax deduction - follow the link;
- The application for a tax deduction is in this document;
- The conclusion of the medical examination - read it.
Deduction limits for housing purchased after 2014
Since January 1, 2014, significant changes have been made to the Tax Code of the Russian Federation, according to which, if the tax deduction for the purchase of an apartment/house is not received in the maximum amount (i.e. from an amount less than 2 million rubles), then the remainder can be received when purchasing other housing properties (paragraph 2, paragraph 1, paragraph 3, article 220 of the Tax Code of the Russian Federation).
Example: In 2021 Ukladova T.I. I bought a room for 500 thousand rubles. and received a property deduction (returned 65 thousand rubles). In 2021, she bought an apartment for 3 million rubles. Ukladova T.I. will be able to receive an additional property deduction for the purchase of an apartment in the amount of 1.5 million rubles. (to be returned 195 thousand rubles).
New rules also began to apply to the deduction for credit interest on housing purchased after January 1, 2014:
- the deduction for credit interest is not related to the deduction for expenses for the purchase of housing and can be obtained for a separate object;
- The maximum deduction for credit interest is 3 million rubles. (to be returned 390 thousand rubles);
- unlike the deduction for expenses for the purchase of housing, the deduction for credit interest can be received only once in a lifetime for one property;
Example: In 2021 Panyukov E.I. bought an apartment worth 8 million rubles. To buy an apartment, he took out a mortgage in the amount of 6 million rubles. (on which he will pay interest in the amount of 3.5 million rubles) Panyukov E.I. will be able to receive a basic property deduction in the amount of 2 million rubles. (to be returned 260 thousand rubles), as well as an interest deduction in the amount of 3 million rubles. (to be returned - 390 thousand rubles).
Example: In 2014, Epifanova T.K. I bought an apartment and received a property deduction for purchase costs. In 2017, she bought a new apartment with a mortgage and will be able to receive a deduction for the loan interest paid.
Example: In 2014, A.A. Cherezov I bought an apartment worth 1 million rubles with a mortgage. Cherezov A.A. received a deduction for purchase expenses and a deduction for credit interest. In 2021, he purchased another apartment worth 3 million rubles. (also using credit funds). Cherezov A.A. will be able to receive an additional deduction for purchase expenses (since he did not use it in full), but will not be able to receive an additional deduction for credit interest, since it is provided only for one property.
For whom is it intended?
Any tax deduction (property deduction is no exception) can be provided only to taxpayers, that is, individuals who pay personal income tax.
A person can acquire the right to it if he is officially employed and receives a “white” salary, from which the employer regularly deducts 13% to the state income. This right, according to Article 220, appears to the taxpayer in the following cases:
- When selling property within the minimum maximum period of ownership (this period, for different cases, is 3 or 5 years), the taxpayer is obliged to pay tax on the income generated. The deduction amount is 1,000,000 rubles for the sale of residential real estate (and plots for individual housing construction), 250,000 rubles for the sale of other real estate. When selling other property (for example, a car) with a tenure of less than 3 years, the deduction is 250,000 rubles.
- When withdrawing a land plot and (or) real estate for state/municipal needs. Provided in the amount of the redemption price.
- For the purchase/construction of housing, the acquisition of land plots for individual housing construction. The limit is 2,000,000 (two million) rubles.
- To repay interest on a mortgage (loans taken for the purchase/construction of housing, land plots for individual housing construction). The maximum amount is 3,000,000 rubles.
Receipt of deductions before January 1, 2001 is not taken into account
In conclusion of the article, we note that until 2001, the property deduction was provided on the basis of the Law of the Russian Federation of December 7, 1991 N 1998-1 “On personal income tax.” This law became invalid on January 1, 2001. Therefore, if you claimed a property deduction and all payments on it were made before January 1, 2001, then you can assume that you did not use the deduction . When purchasing another home (after January 1, 2001), you can again receive a property deduction (Letters of the Ministry of Finance of Russia dated February 13, 2014 N 03-04-05/5889, dated July 24, 2013 N 03-04-05/29229).
Example: In 1998, Klestova Y.F. I bought an apartment. In 1999 and 2000, she submitted 3-NDFL returns to the tax office and received a full property deduction. In 2013, Klestova Ya.F. I bought an apartment again. Since she received the full deduction before January 1, 2001, when purchasing an apartment in 2013, she will be able to take advantage of the property deduction again (according to the rules of Article 220 of the Tax Code of the Russian Federation).
Example: In 1999, Ezhov N.N. bought an apartment. In 2000, 2001, 2002 and 2003, he applied to the tax office to receive a property deduction. In 2021 Ezhov N.N. bought a second apartment. Since part of the deduction payments was made after January 1, 2001, N.N. Ezhov can receive a property deduction for an apartment purchased in 2021. can not.
If you have not yet purchased a home, we recommend our partner’s site-guide, APARTMENT-Bez-AGENTA.ru. This is an educational site for those who want to understand the rules for buying and selling apartments.
Size
The current legislation defines certain groups that separate tax rates.
All of them are shown in the table below.
| Name | Compensation amount (%) |
| Salary, income from property and income from contracts | 13 |
| Dividends, bonds and profits from mortgage borrowers invested before 2015 | 9 |
| Dividend income from persons who are not citizens of the Russian Federation, from Russian companies | 15 |
| Other income from individuals who are not residents of the country | 30 |
| Applies to prizes, winnings and profits on interest investments, etc. | 35 |
Tax deductions are provided for those expenses that have a tax rate of 13 percent.
Multiple Receipt Conditions
The right to receive multiple receipts can be exercised by:
- a taxpayer who has income taxed at a personal income tax rate of 13% in the form of wages, business revenue, rent, etc.
- did not exercise his right until 2014;
- underutilized limit of 2 million rubles. for an object purchased after 2014;
- he has not previously issued a refund in part of interest;
- who did not have enough income for the year to cover the entire amount of the required deduction.
Persons who have lost taxable income are also deprived of the right to compensation from the personal income tax budget.
When is it not possible to return tax multiple times?
Here is a list of reasons under which a taxpayer will receive a refusal from the inspection: he has previously issued a personal income tax refund for an apartment before 2014 or has spent the entire limit of 2 million rubles. after 2014; or exercised his right to receive compensation for mortgage interest costs.
Since 2014, Russians have had the opportunity to repeatedly apply to the Federal Tax Service to receive compensation for taxes (until 2014 this was prohibited by law). This rule does not apply to mortgage interest: personal income tax can be returned for it only once.
Where can I go for registration?
There are several ways to receive compensation for fees paid.
The most common of them are shown in the table below.
| Personally submit the papers to the branch of the Tax Service of the Russian Federation | Registration is allowed only at the place of registration |
| Submit an application for deduction and relevant documents for the employer | Allowed only for officially employed citizens |
Citizens who have a right to claim a refund can submit documents either themselves or through a tax agent.
