Application for a property tax deduction

26.11.2020

Here you will find an application for the distribution of property tax deductions between the owners of an apartment (room, residential building, land plot). It is issued when several people purchase real estate in joint or shared ownership. For example, spouses.

Samples of other statements can be found at the following links:

• for property deduction (when purchasing an apartment or other real estate);
• for social deduction (training);
• for social deduction (treatment).

Types of property deductions

Property deductions applied to income taxed at a rate of 13% are discussed in Art. 220 Tax Code of the Russian Federation. It talks about 4 types of deductions:

• arising in the event of the sale of property (subclause 1 clause 1);
• equal compensation for the value of property sold by the taxpayer (subclause 2, clause 1);
• in relation to the costs of purchasing housing (subclause 3, clause 1);
• on interest for a loan taken for the purpose of purchasing a home (subclause 4, clause 1).

The question of applying for a deduction arises in relation to the last 2 types.

How does distribution occur in shared ownership?

Shared owners-co-borrowers have the right to distribute the interest deduction in any proportion, regardless of the size of the shares. The proportions can be changed annually at your discretion.

The Petrovs bought an apartment as shared ownership in 2014 for 2 million rubles with a share size of 50/50%. For the first year of the mortgage, the owners paid 300 thousand interest and divided the deduction in half, receiving a deduction in the amount of 19,500 rubles for each (150 thousand * 13%).

In 2021, the husband was fired, so when submitting a declaration for interest deduction for 2015, the Petrovs decided to distribute the shares equally, as in 2014, and for 2016 in accordance with 100/0% (100% of the interest deduction will be received by the wife, and husband – nothing, since there was no income for this year).

Thus, for 2021, they declared a mortgage interest deduction in the amount of 39,000 rubles, which the spouse will receive (300 thousand * 13%).

In cases where spouses purchase an apartment in shared ownership and each of them invests a certain amount in the purchase, they have the right to declare the distribution of shares in accordance with the expenses incurred. In this case, all expenses must be documented . However, mortgage interest, according to the Family Code of the Russian Federation, is considered a joint expense of both spouses, so they can distribute the deduction in any proportion and change it every year.

Deductions when buying a home

Deductions related to the costs of purchasing housing are most in demand. They are divided:

• for direct purchase costs;
• contributions to construction, including the purchase of land for it;
• interest on targeted loans taken for the purchase or construction of housing.

These deductions are limited to the following amounts:

• 2 million rub. for purchase or construction expenses, and the deduction can be used in full, and if the amount of costs for one object is insufficient for this, then in relation to several objects (subclause 1, clause 3, article 220 of the Tax Code of the Russian Federation);
• 3 million rub. for interest on a loan (clause 4 of Article 220 of the Tax Code of the Russian Federation), but such a deduction is applicable only to 1 object (clause 8 of Article 220 of the Tax Code of the Russian Federation).

Both types of deductions can be used simultaneously for the same object and also apply to situations of acquisition of property in favor of owners under 18 years of age by their parents or guardians (clause 6 of Article 220 of the Tax Code of the Russian Federation). But they are not applicable for expenses paid not by the taxpayer himself, by budgetary funds or maternal capital funds, as well as for transactions with interdependent persons (clause 5 of Article 220 of the Tax Code of the Russian Federation). You cannot get them a second time (Clause 11, Article 220 of the Tax Code of the Russian Federation).

Acquisition is possible in shared ownership. This does not prevent each of the owners from taking full advantage of both deductions in the amounts established by law.

Distribution of return on mortgage interest

In addition to compensation for acquisition costs, persons have the right to receive refunds on payments of borrowed funds. Spouses have the right to independently determine who will receive a personal income tax refund on interest by sending an application to the tax authority for the distribution of the interest deduction between the spouses, regardless of who the documents are issued for.

IMPORTANT!

The maximum amount of such property deduction depends on the date of receipt of the loan:

• 3 million rub. for each upon receipt after 01/01/2014;
• without limitation when receiving before 2014 and when refinancing loans received before 2014 (clause 4 of article 220 of the Tax Code of the Russian Federation, clause 4 of article 2 of Law dated July 23, 2013 No. 212-FZ)

Spouses have the right to submit an application for this category as many times as they like, even every year. This is very convenient - for example, when the wife goes on maternity leave. In this case, it is allowed to issue a refund entirely to the husband.

ConsultantPlus experts analyzed what deductions and obligations under personal income tax are provided for when selling an apartment and other real estate. Use these instructions for free.

Expenses taken into account in the deduction

A residential property (or part of it) can be purchased ready-made or unfinished, built through equity participation in construction or on its own. For deduction, it is legitimate to take into account all costs directly related to its occurrence. In addition to the funds directly paid for the acquisition of an object or a share in construction, the following expenses can be taken into account:

• for design and budgeting;
• construction and completion;
• finishing (materials and work);
• connection to general networks or construction of local sources of water, gas, heat, electricity, as well as autonomous sewerage.

Costs for completion and finishing are taken into account only if the property was purchased unfinished or the contract provides for the transfer of housing to the owner without finishing (subclause 5, clause 3, article 220 of the Tax Code of the Russian Federation).

How to fill out a tax form?

Let's look at the features of filling out an application for the distribution of shares of a property deduction using the example of a standard form.

The form is presented on one sheet.
You need to fill in the following form fields :

• In the upper right corner enter the name of the Federal Tax Service branch where documents for income tax refund are submitted;
• In the genitive case, the full names of the applicants are written - spouses who wish to distribute the required tax benefit in accordance with their wishes;
• TIN of each spouse, if any;
• The residential address of each applicant must correspond to the passport registration;
• Contact information that a tax specialist can contact in case of questions regarding the application;
• The name of the purchased immovable property for which the personal income tax is planned to be returned is entered into the text in a free field, and the address of the apartment or other residential property is also indicated;
• The shares of the property deduction that will be used by each of the applicants; for this, the full names of the husband and wife are entered next to the desired amount of the benefit (the amount is indicated in numbers and words);
• Signatures of the spouses;
• Date of writing.

When filling out the form for dividing the deduction, you need to check that the data on the apartment specified in the application exactly matches the similar information entered in the 3-NDFL declaration.

The date specified in the application for the distribution of tax refund benefits is transferred to 3-NDFL, in field 090, sheet D1, in which you need to enter the day, month and year of writing this form.

By putting the date on the declaration, the applicant shows that they want to redistribute the opportunity to receive the deduction in their own way.

3-NDFL declaration when purchasing an apartment:

• when applying in the first year;
• when resubmitted.

Sample filling

In 2021, an application to determine the shares of property deduction and distribute them between two spouses should be submitted for an apartment purchased in 2021.

A completed sample written application is attached to other documentation; it is necessary to process a personal income tax refund for the purchase. The package includes an application for deduction and refund of income tax, 2-NDFL, 3-NDFL declaration, documents for an apartment, payment papers, etc.

fill out an application for receiving property benefits by a husband and wife and redistribute deduction shares using the link.

What the completed form looks like:

Documents giving the right to deduction

A person claiming a deduction must collect all documents certifying the fact of acquisition of property and the amount of expenses incurred on it:

• certificates of ownership (land, house, apartment, room, share);
• purchase agreements, equity participation agreements, acceptance certificates;
• when purchasing for children or wards - documents about birth or guardianship;
• mortgage or targeted loan agreement;
• payment documents of any kind for all expenses.

This set, in terms of the volume of costs incurred, should be as complete as possible, since adjustments to the amount of deductions already declared for a specific object (except for the amount of interest on the loan) are not provided (letter of the Ministry of Finance of Russia dated June 11, 2014 No. 03-04-05/28176) . An exception is the situation of paying for housing in installments (letter from the Federal Tax Service of Russia dated November 12, 2014 No. BS-4-11 / [email protected] ).

For a complete list of necessary papers that must be prepared when forming a property deduction, see here.

13% personal income tax refund when spouses purchase an apartment

IMPORTANT! The rules described below apply to those apartments that were purchased after January 1, 2014 (what happened before this date can be read here).

Let's start with the fact that the acquisition of living space itself can be formalized by spouses in three ways:

1. into common joint ownership;
2. into common shared ownership;
3. in the property of one of the spouses; at the same time, the second spouse still becomes a co-owner of the property, according to the law on joint property of spouses.

You can read more about these types of property by following the links in the Glossary. Here we will show how the property deduction (personal income tax refund) in such a joint purchase of an apartment by spouses, including with the use of a mortgage.

And we’ll also tell you how you can get a deduction for children .

The basic rules for accepting a new apartment from the Developer - see the Glossary at the link.

When can you start applying the deduction?

The question of obtaining a deduction will become relevant when the property is registered for a residential property or the taxpayer receives an acceptance certificate for a finished shared construction project. Until this moment, neither the registration of the right to land allocated for development (subclause 2, clause 3, article 220 of the Tax Code of the Russian Federation), nor the costs of paying interest on a mortgage (clause 4, article 220 of the Tax Code of the Russian Federation) do not allow one to exercise the right to deduction.

You can start applying the deduction in 2 ways:

• In the year when the right to a deduction appeared (without waiting for the end of the year), submit the package of documents collected on it to the Federal Tax Service at your place of permanent residence and a month later pick up a notice of the right to a deduction there to receive it from your employer already in the current year (p 8 Article 220 of the Tax Code of the Russian Federation). The form of this notification was approved by order of the Federal Tax Service of Russia dated January 14, 2015 No. ММВ-7-11/ [email protected] It is intended for issuance to a specific employer, whom the taxpayer will indicate in the application.
• Wait until the end of the year in which the right to deduction arose and submit a set of documents on it to the Federal Tax Service along with the 3-NDFL declaration for the corresponding year (clause 7 of Article 220 of the Tax Code of the Russian Federation). After checking the documents and declaration, the Federal Tax Service will return the tax accrued on it as a refund, and for the remaining amount, if desired, the taxpayer will give a notification of the right to a deduction for its use at the place of work. The declaration is submitted together with 2-NDFL certificates from all employers. Its verification will take 3 months (clause 2 of Article 88 of the Tax Code of the Russian Federation), and another month will be spent on procedures for tax refund (clause 6 of Article 78 of the Tax Code of the Russian Federation) and issuing a notification of the right to deduction (clause 8 of Article 220 of the Tax Code RF).

For information on how to fill out the declaration correctly, read the article “Sample of filling out the 3-NDFL tax return.”

Thus, the deduction begins to be applied from the year the right to it appears and is used in subsequent years, provided that there is income in them from which personal income tax is withheld. The deduction will be applied for the number of years necessary for its full use for the entire amount of expenses confirmed by documents (clause 9 of Article 220 of the Tax Code of the Russian Federation).

For pensioners, it is possible to use the deduction for 3 years preceding the year the right to it became available (clause 10 of Article 220 of the Tax Code of the Russian Federation). If in the year the right to deduction arose there was no income subject to personal income tax, then the deduction can be applied for in subsequent years (without limiting their number), but no later than 3 years from the end of the years for which the tax must be returned (letter from the Ministry of Finance of Russia dated June 11, 2014 No. 03-04-05/28218).

An employer who has received a notice of the right to a deduction will begin to use it from the month of receipt, but in relation to income for the entire year (letter of the Ministry of Finance of Russia dated September 25, 2015 No. 03-04-05/55051). If at the time of providing the notification for the current year, the tax has already been withheld and it is not possible to return the excess withheld amount at the place of work from the accrued tax for the year (the amount of deduction exceeds the amount of accruals), its refund will be carried out by the Federal Tax Service (letter of the Ministry of Finance of Russia dated July 15, 2014 No. 03 -04-05/34402).

Regardless of the method by which the deduction is applied, the right to use its balance (if the deduction is to be used for several years) must be annually confirmed with the Federal Tax Service in one of the following ways:

• Receive a notification for your place of work at the beginning of the year - upon application for the issuance of such a notification (clause 8 of Article 220 of the Tax Code of the Russian Federation).
• Submit a declaration to the Federal Tax Service and return the tax through it - according to the application for the return of personal income tax (clause 6 of Article 78 of the Tax Code of the Russian Federation), which indicates the account details for the tax refund. Submitting an application for the application of a property deduction is not necessary (letter of the Ministry of Finance of Russia dated November 26, 2012 No. 03-04-08/7-413). Its role is played by the declaration itself.

Rules for calculating the amount of personal income tax to be refunded in the case of registration of housing in common ownership with children

Basic moments:

• It is possible to increase the parent’s property deduction at the expense of the child’s share, but the maximum amount remains unchanged - 2 million rubles. Example: Smirnova Valentina Fedorovna bought an apartment worth 3 million and registered ½ of it for herself and her minor child. She has the right to count on a deduction of 1.5 million for herself and 500 thousand rubles. for the child.
• A parent has the right to receive compensation for a child if the housing is registered not only to him and the child, but also to other persons. Example: Smirnov Petr Petrovich and his sister Smirnova Valentina Petrovna bought an apartment worth 3 million and each registered 1/3 of it for themselves and Smirnova’s 8-year-old daughter. Thus, Valentina Petrovna Smirnova has the right to count on a deduction in the amount of 2 million rubles. (1,000,000 for yourself and 1,000,000 for a child).
• If a residential property is registered in the name of both parents and children, then both one parent and both have the right to use the payment for the child (Letter of the Ministry of Finance of Russia dated March 14, 2013 No. 03-04-05/7-223). There are no clear instructions on how to do this. By analogy, a statement of agreement on the distribution of the property deduction for the child between the parents should be attached to the declaration. It would not hurt to have a preliminary consultation with a tax inspector on this issue.
• In the future, upon reaching adulthood, the child does not lose the right to his own property tax deduction (Letters of the Ministry of Finance of Russia dated 09/03/2015 No. 03-04-05/50743, dated 08/29/2014 No. 03-04-05/43425).
• A parent has the right to receive a refund from personal income tax, even if the minor is the sole owner of the home. Example: Andrey Viktorovich Voronov bought a room worth 1.2 million and registered it entirely for his minor daughter. He has the right to expect a return of 156,000 rubles.
• A parent does not have the right to count on a deduction for a child if he has already used it in another residential premises (Clause 11 of Article 220 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated March 16, 2015 No. 03-04-05/13747).
• The parent has the right to receive a deduction for the child for the same housing for which he returned personal income tax in part of his share. In this case, it is necessary to submit updated declarations to the tax office (Letter of the Ministry of Finance of Russia dated 02.02.2012 No. 03-04-05/9-109). Example: Ivan Ivanovich Ivanov bought an apartment for 3 million and registered it in equal shares for himself and his 12-year-old son. He filed a declaration regarding his share, but did not know about the possibility of getting a refund for his son. Later, he exercised his right and filed an updated declaration for another 500,000 rubles.

When the question arises about the distribution of deductions

A taxpayer may have several jobs or change jobs during the period of application of the deduction.

If a person works in several places at the time of issuing a notification of the right to a deduction, you can request several such notifications from the Federal Tax Service, distributing the amount of the deduction between all places of work (clause 8 of Article 220 of the Tax Code of the Russian Federation). Information about employers and deduction amounts related to each of them may be indicated in one application.

When changing jobs, a deduction for a new place will be possible only after notification of the right to it is provided, addressed to the new employer. At the same time, the Federal Tax Service Inspectorate has the opportunity to check the data on the refund already made by receiving a 3-NDFL declaration from the taxpayer for the year of job change (clause 7 of Article 220 of the Tax Code of the Russian Federation). The information reflected in the declaration will need to be confirmed with 2-NDFL certificates from all places of work for the year. 4 months after filing the return, the excess tax withheld for the year will be returned and the necessary notification will be provided.

To learn about receiving 2-NDFL from a former employer, read the article “Where can I get (get) a 2-NDFL certificate?”

The question of distribution of deductions may also arise when purchasing housing in joint ownership, if the total amount of costs for it is insufficient for all owners to use the deductions in full. They can take advantage of the opportunity to allow one of them to apply the deduction in full, redistributing it according to an application to the Federal Tax Service. Other owners in this situation use the deduction only partially or transfer it to other properties.

For details, see the material “Each spouse can receive a deduction for the purchase of property.”

How to make an application correctly?

The agreement is drawn up by the spouses independently without notarization. Certified by the signatures of each of them. The document must contain the following information:

• name of the document (agreement on the distribution of costs for the purchase of an apartment);
• Full name and passport details of each spouse;
• details of the transaction agreement, as a result of which the spouses became the owners of the apartment;
• apartment address;
• the total cost of the apartment in accordance with the transaction agreement;
• the proportions according to which the costs of the purchase are distributed between the spouses;
• Date of preparation;
• signatures and their decoding.

An agreement on the costs of purchasing an apartment is drawn up once and submitted to the tax authority to apply a tax refund. It will be impossible to change the proportions in the future.

If the apartment was purchased with a mortgage loan, it is possible to refund the personal income tax on the interest paid. Their spouses can also distribute them among themselves; for this, the shares must be indicated in the agreement. Since 2014, it is possible to submit an application for distribution at least every calendar year.

Sample application to the tax office

The application for the right to apply a property tax deduction has a specific form recommended for use by the Federal Tax Service of Russia. The form is contained in the letter of this department dated 10/06/2016 No. BS-4-11/ [email protected] Despite the fact that formally the use of a document of a certain form for such a purpose is not mandatory, it is better to submit an application to the Federal Tax Service on the recommended form, since the tax service it was developed with the aim of uniformity in the documentation used.

On our website you will find a sample application for receiving the 1st notice of the right to a property deduction (through the employer), completed on the current form:

A sample application for the return of overpaid personal income tax, submitted with the 3-NDFL declaration, can be downloaded here.

Property tax deduction for the purchase of housing by spouses in common joint ownership

In accordance with the RF IC, the regime of common joint ownership of property applies by default between persons who have entered into marriage, unless otherwise established by agreement between them. This means that everything acquired during the marriage, with some reservations, belongs to them equally, regardless of whose name it is registered in. This provision also applies to real estate.

IMPORTANT!

The decision made on distribution can be changed only before the start of the procedure for returning overpaid personal income tax (Letter of the Ministry of Finance of Russia dated October 31, 2017 No. 03-04-07/71600).

Each of the spouses has the right to return the personal income tax paid in an amount that depends on the expenses for the purchase of residential premises, regardless of which of them is in the name of which ownership of this real estate and payment documents are registered (Article 220 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated December 14, 2020 No. 03-04-07/109293). But the maximum amount with which a refund is calculated is two million for each. By default, the distribution is 50 to 50, but by applying for the distribution of property deductions between spouses, the husband and wife have the right to change this. If one of them does not have personal income tax income, it is impossible to transfer the right to use the deduction due to him to another. But the law allows you to take advantage of compensation in subsequent calendar years, provided that you receive the appropriate taxable income (Article 216, paragraph 9 of Article 220 of the Tax Code of the Russian Federation) or in the application for the distribution of shares in a property deduction, provide it only for the other spouse.

Example 1. The Voronovs bought an apartment for 3,000,000 rubles. As a general rule, each person is entitled to a deduction in the amount of 1,500,000 (return of 195,000 rubles). But the husband receives more, so the decision was made to apply for the redistribution of shares to the tax return in order to redistribute expenses in the proportion of 2/3 to Voronov (2 million) and 1/3 to Voronova (1 million). Thus, 260,000 rubles will be returned to Voronov, and 195,000 rubles will be returned to his wife. The remaining part is 1 million rubles. Voronova has the right to use it when purchasing another home.

Example 2. The Smirnovs bought an apartment for two million. But the wife does not officially work. They issued tax documents in the name of Smirnov, and there will be 260,000 rubles due for refund.

Results

The right to apply a property deduction for personal income tax arises when acquiring housing through its purchase or construction. The scope of the deduction includes all actual costs incurred in connection with the emergence of the corresponding object, and interest costs on the loan taken for the purchase (construction).

The deduction becomes applicable after acquiring ownership of the property and completing the investment in it. The Federal Tax Service must be notified of the emergence of the right to it either in the year of its occurrence or upon its completion. In the first case, you can start receiving the deduction at your place of work immediately, in the second, its amount attributable to the past year will be returned by the tax authority.

Since the amount of the deduction usually exceeds the employee's annual income, the tax refund in connection with it is carried out over several years. In this regard, an application for the use of a deduction is submitted several times until it is fully used. To fill out an application, the Federal Tax Service of Russia has developed a recommended form.

Sources:

• tax code
• Order of the Federal Tax Service of Russia dated January 14, 2015 No. ММВ-7-11/ [email protected]

You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

What is the difference between shared and joint property?

If the property was purchased during marriage, both spouses may be entitled to a mortgage deduction and interest paid. In this case, the type of property registered in the name of spouses matters - joint or shared.

Joint ownership implies joint ownership of property without allocating shares to each of them.

Shared ownership involves allocating the exact share of each spouse. It can be anything - 1/2, 1/3, 1/4, etc.

When registering real estate as joint joint ownership, one certificate of ownership is issued to the spouses, and it does not matter who the owner is - both spouses or one of them.

When registering an apartment (house) as a common shared property, two certificates of registration of ownership are issued , which indicate the size of the share of each spouse.