Tax on a privatized apartment in 2021: for pensioners, as calculated upon sale

After privatization of housing, the owner of the property must annually pay a certain amount of tax on private property.
The tax on privatized housing is calculated in the same way as on real estate acquired through a purchase and sale agreement.

It makes no difference how the property acquired the status of private property.

Privatization is the process of transferring the state form of housing to private form. After completing all the necessary documents, the owner of a private apartment becomes a taxpayer for the use of real estate.

Who should pay?

Apartments, as well as vehicles, may be owned by one owner, or there may be several co-owners of the property.

What type of property this is, the amount of taxation on this property depends on this.

Categories of owners of privatized housing can be:

Individual owner of residential premises - he is required to pay the tax amount independently;
Shared owners of privatized housing - this property has several owners, who are clearly defined with their share in this apartment. All shared owners are required to pay a tax amount for their share in a privatized apartment. The amount of charges depends on the share in housing;
Co-owners of their own housing - own the property as a common property and must also pay the amount of the required property tax. The taxpayer for the apartment can be one person by joint agreement of the co-owners.

Apartments, as well as vehicles, can be owned by one owner

How much will you have to pay for the apartment?

There is no uniform tax rate for an apartment. The amount to be paid always depends on a number of factors:

what is taken as the basis for the calculation - the tax base;
what deductions are there that reduce the basis;
tax rate determined by the region;
the period in which the tax is calculated;
share in the right to an apartment that belongs to the owner.

The first thing you need to look at is what value the region’s tax authorities use to calculate the tax - inventory or cadastral.

What is real estate tax?

Since 2015, there have been changes in legislative decrees and acts that relate to property taxation for individuals.

In 2021, the amount of taxation on an apartment will not be calculated from the assessed value of housing in accordance with the inventory, but will be accrued according to the cadastral assessed value.

The distinctive features of the cadastral appraised value of an apartment from its inventory value are that the value of real estate according to the cadastral appraisal is closest to the cost of the apartment on the market.

Therefore, the amount for property taxation will be significantly higher than in 2021.

The new law on the payment of property taxes should be fully operational in all regions of the state until January 1, 2021.

As of [y] year, 28 regions of the Federation are implementing a new property tax.

What is privatization

The transfer of living space from the ownership of the municipality to the ownership of residents is called privatization. Non-privatized housing is on the balance of the state and is provided to citizens for living under a social tenancy agreement. The privatization procedure is absolutely free for citizens.

Citizens do not have the right to make any transactions with a non-privatized apartment, since they are not the owners of the property. Non-privatized housing is not subject to property tax.

Property tax

A privatized apartment is subject to property tax starting from the month of state registration of property rights in Rosreestr. The amount to be paid is calculated by Federal Tax Service specialists. After which the owner is sent a notice indicating the amount of tax to be paid.

The calculation is made using the formula:

N = (Ko – L) × St × Kmv / 12

N – tax
Ko – cadastral valuation of the object;
L – benefit;
St – rate;
Kmw – the number of months of ownership of the property.

Tax collection rates are established by regulations of local authorities. If the Federal Tax Service has not sent a notification, then the citizen must independently contact the tax authority to receive a calculation of the amount of the fee to be paid. Perhaps the letter from the Federal Tax Service was lost in the mail.

Property taxes must be paid by December 1 of the year following the reporting period. For late payment, the taxpayer will be charged a penalty in the amount of 1/300 of the refinancing rate. The citizen will also be fined 20% of the debt amount.

The tax authority has the right to collect debt for three previous tax periods. That is, in 2021, the taxpayer may be required to claim tax for 2016-2018. The deadline for collecting property taxes for 2015 expired in 2018.

Benefits for pensioners

Citizens who have reached retirement age receive a 100% reduction in payment of property taxes. That is, they are completely exempt from paying tax in relation to one object of the same type.

Art. 407 of the Tax Code of the Russian Federation approved other categories of citizens who have the right to a 100% benefit when paying property taxes. These include disabled people of groups 1 and 2, disabled children, WWII participants, military personnel and others.

Shared ownership

If citizens have privatized an apartment as shared ownership, then everyone pays a property fee in accordance with their share. In this case, the benefit is also provided in proportion to shares.

How to pay

There are several ways to pay the property tax:

upon notification at a bank branch;
at Russian Post;
online, through mobile banking or personal account.

If the notice of payment of the fee is sent to the taxpayer’s personal account. Then the owner of the property can make payment online. To do this, you need to click the “pay” button and enter your bank card details for debiting funds.

You can also track the payment status in your personal account. When the funds are credited to pay the fee, the portal will display information about the absence of property tax debt.

Personal income tax upon sale

When alienating a property, a citizen receives income, from which he must pay 13% to the budget. The responsibility for calculating personal income tax and submitting a declaration rests with the taxpayer.

The tax is calculated using the formula:

N = (D – L) × 13%

N – tax;
D – income;
L – benefit.

The personal income tax benefit for the sale of real estate is provided in the form of a deduction that reduces the tax base. Art. 220 of the Tax Code of the Russian Federation provides for two types of deductions:

in the amount of 1,000,000 rubles;
in the amount of actual acquisition costs.

Since the privatization process is free, the owner does not incur expenses when registering rights to living space. Therefore, he cannot take advantage of the second type of deduction. Therefore, he can reduce the tax base by 1 million rubles.

How not to pay personal income tax

An owner who has owned an apartment obtained as a result of privatization for more than 3 years is completely exempt from paying personal income tax.

The countdown of the tenure period depends on the year of privatization:

before 1998, the period was counted from the moment the privatization agreement was signed;
after 1998 - from the moment of state registration of rights in Rosreestr.

Understating the base

Some owners who have owned a privatized apartment for less than 3 years want to avoid taxes by understating the tax base within the limits of the deduction provided.

To stop such concealment, the tax authority controls the income from the sale. If the price of the purchase and sale agreement is less than the cadastral valuation multiplied by a factor of 0.7, then the base for calculating personal income tax is determined based on the cadastral value, taking into account the reducing factor.

Payment period

Privatization gives the owner of the property unlimited rights to dispose of the property. At the same time, the owner has additional responsibilities for maintenance and payment of taxes. Having become the full owner of an apartment, a citizen must pay property tax annually.

If the owner wants to sell the privatized living space earlier than three years after registration of rights in Rosreestr, then he will have to pay tax on the income received. At the same time, he can reduce the tax base by applying deductions provided for by the Tax Code of the Russian Federation.

What kind of housing is subject to payment?

According to legislative acts, the following privatized real estate is subject to taxation:

All residential premises are an apartment, as well as a house, a part in a house, or a share in an apartment, and also include premises for housekeeping;
A garage for a car, or a privatized place to park a car;
A single complex of residential buildings;
Other real estate.

In apartment buildings, apartment owners do not have to pay for the area of real estate that is intended for public use (basements in houses and attics, as well as staircases in entrances).

If you are the owner of a house that is located on a plot of land, then in addition to the tax on a residential building, you also need to pay a tax on the land plot that is located under the house and around the house.

The same conditions for paying property taxes apply to country houses.

What housing do you need to pay for?

Privatization is considered only the process of transferring property from state or municipal form to private.
This procedure is regulated by several Federal laws “On the privatization of the housing stock of the Russian Federation”, “On the privatization of state and municipal property”, and the Civil and Land Codes.

If property is transferred from one individual to another individual or legal entity, this procedure is not related to privatization and the relationship between the two individuals will be governed by other laws.

You can privatize a plot of land, a residential building, an apartment, a room. After privatization, the owner is obliged to register his property rights according to the law “On registration of rights to real estate and transactions with it.”

The owner of a privatized apartment is required to pay property tax annually . All rules related to taxation are prescribed in the Tax Code.

Article 401 lists the items that are subject to taxation. These include:

residential apartment or room;
a private house;
house on a personal plot.

If the apartment is located in a residential apartment building, then the owner pays only the apartment tax, and the common property belonging to all residents of the building is not subject to contributions.

If your house is located on a plot of land that belongs to you, then the land and property taxes, that is, the house, including the country house, are paid separately.

How is the property tax amount calculated?

In order to calculate the amount of tax for an apartment, it is necessary to multiply its cadastral assessed value by the rate of this type of taxation.

At the legislative level, a maximum rate is established - 1.10% of the cadastral value of an apartment or house.

Each region independently sets the percentage tax rate for privatized housing.

The legislation also provides for a deduction for this type of taxation - this is a reduction in the cadastral assessed value of the entire apartment by 20.0 square meters. Local authorities may change the deduction area upward.

If the deduction area is equal to the area of the apartment, then the owner of such housing does not pay tax on privatized residential property.

If the region has an old law on property taxation and the inventory assessed value is used for calculation, then the tax deduction amount is not applied in this calculation.

To calculate the cost of tax financial deductions from the family budget, you need to know the regional rate for this type of taxation for an apartment and privatized real estate.

If new calculations using cadastral assessed value are applied in the region, then local authorities can reduce the interest rate, and the law allows a reduction to 0% of the rate of this type of taxation.

Calculation example

Calculation of the cost of property tax for a privatized apartment with an area of 42.0 square meters. The cadastral estimated value of this housing is 2 million 250 thousand rubles.

To calculate, it is necessary to establish the cost of one square meter of this apartment; for this, the cadastral estimated amount is divided by the number of square meters of this housing:

2250000.00 rubles / 42.0 sq.m = 23571.00 rubles;
The deduction for this apartment is 20.0 square meters;
We set the deduction amount - 53571.00 rubles x 20.0 sq.m = 1071420.00 rubles;
the amount from which tax interest is calculated - 2,250,000.00 rubles - 1,071,420.00 rubles = 1,178,580.00 rubles;
Tax accrual - 1178580.00 rubles x 0.10% = 1178.58 rubles.

The larger the area of the privatized apartment, the greater its cadastral assessed value and the higher the amount of tax that must be paid from the personal budget to the regional budget.

Size

To calculate property tax, you need to multiply the cost of a privatized apartment by the tax rate.

The tax rate in different regions of the country may differ. The law sets only its maximum value - 0.1% of the cost of housing.

But the cost of housing is being determined in a new way starting this year.

Taxation procedure for sales

Taxation on the sale of an apartment or other living space is 13.0% of the profit. Personal income tax is mandatory and evasion of it is subject to administrative liability.

Before a home owner thinks about selling it, he needs to find out all the nuances that are associated with taxation during a purchase and sale transaction.

Conditions under which tax-type circumstances arise:

The privatization of this housing occurred no more than three years ago;
The cost of living space under the purchase and sale agreement is more than 1,000,000.00 Russian rubles.

Under such conditions, tax is charged on the sale of the apartment; under other circumstances, taxes are not paid.

Option to reduce tax when selling a privatized apartment

To save on paying tax when selling housing, you need to know the nuances of how to reduce the amount of payment - this is a tax using a property tax deduction.

Any citizen has the right to take advantage of a tax deduction in the amount of one million rubles, which are not taxed.

Formula for the amount of tax when using a deduction:

The cost of living space is 1,000,000.00 rubles and multiplied by 13.0%;
The amount that is calculated is the amount that needs to be paid.

It is also legally possible to reduce the payment of tax on the principle that the amount of money spent on its purchase is subtracted from the amount of income received from the sale of real estate.

This is a fairly profitable way to reduce the payment, or not pay tax at all, but there must be documentary evidence of how much you paid when purchasing this apartment.
Form for calculating the amount of payment to the state budget for property taxation:

Profit from the sale of living space - financial expenses upon purchase and multiplied by 13.0%.

Calculation example

Sidorenko S.E. purchased an apartment in 2015 at a price of 1,400,000.00 rubles. Now the sale price of this apartment is 1,850,000.00 rubles.

We will calculate the tax on this apartment using the tax deduction method and the difference between the purchase amount and the sale amount.

Calculation of deduction amount:

1850000 rubles - 1000000.00 rubles = 850000.00 rubles;
850,000.00 rubles x 13.0% = 110,500.00 rubles;
110,500.00 rubles is the amount of tax that must be paid.

Calculation of the difference in the amount between the sale of an apartment and the amount of investment when buying it:

1850000.00 rubles - 1400000.00 rubles = 450000.00 rubles;
450,000.00 rubles x 13.0% = 58,500.00 rubles;
The tax amount when using this method is 58,500.00 rubles.

Why don't they send the tax?

If the tax for a privatized apartment does not arrive, there may be 2 reasons - a flaw in the Federal Tax Service or the loss of a letter (due to the fault of the Russian Post, your move and change of address of actual residence, etc.).

It is worth taking a conscious position and independently contacting the tax office for clarification of the situation. Failure to receive a sent letter will not eliminate your tax liability.

As for the income tax on the sale of an apartment, you must submit a declaration in Form 3-NDFL by April 30 of the year following the transaction (you sold the apartment in 2015 - have time to declare income before April 30, 2016). Pay the tax by July 15 of the year following the transaction of the year.

In conclusion of a brief tax excursion, I would like to warn against the temptation to not pay taxes or, even worse, to take advantage of fraudulent schemes that are often offered by unscrupulous realtors.

Remember, paying taxes is a citizen’s responsibility and evading it can have very serious consequences.

Who is not subject to taxation?

Not all categories of the Russian population pay tax on privatized housing.

The benefit for this type of taxation applies to the following categories:

War veterans;
Citizens with disabilities of the first and second groups;
Disabled people from childhood;
Heroes of the Soviet Union and Russia;
Citizens who were awarded the Order of Glory for their services;
Chernobyl victims;
Military personnel who served in the Russian Armed Forces for 20 years or more;
Families who have lost a military breadwinner.

Minors and people of retirement age also benefit from preferential property taxation.

Who is eligible for benefits?

By law, all owners are required to pay property taxes.

But in some cases, an exemption from payment is possible for owners of such real estate:

art workshops;
music studios;
private museums and galleries.

This rule applies even if these objects are located in private residential apartments.

In addition, according to the law, certain categories of our citizens . These include:

persons who have the title of Hero of Russia or the Soviet Union, as well as those awarded the highest state orders and medals;
combat veterans;
victims and participants in the liquidation of consequences of accidents at the Chernobyl nuclear power plant and Mayak PA;
disabled people from childhood and groups I-II;
military personnel with 20 years of service and military pensioners;
family members of military personnel who have lost their breadwinners;
pensioners;
spouses and parents of military personnel or officials who died in the line of duty.

A complete list of all categories of citizens who are entitled to tax benefits is presented in Art. 407 of the Tax Code.

For them, when calculating the tax, the following is subtracted from the total area :

20 square meters – for apartments;
10 sq. meters - for a room;
50 sq. m - for houses.

The local administration itself can set not only rates, but also develop its own tax benefits for such citizens.

Tax on privatized apartments for pensioners

Citizens who have reached retirement age, by law, must also pay taxes; the list of fees includes real estate tax.

But there are payment benefits for pensioners.

Citizens of this category do not pay for:

Real estate owned by a pensioner is an apartment after privatization, as well as a non-privatized apartment, country house, or garage;
Property from which the pensioner does not receive income.

If a citizen of the preferential category rents out his garage or dacha, then the benefit does not apply to this property and he will have to pay an annual property tax.

If the garage is used only for personal purposes, then the pensioner pays the tax amount for the land on which the real estate is located.

The benefit is established only for one apartment, and if the beneficiary owns several apartments, then he can take advantage of the benefit for only one privatized apartment, and for the rest he pays the full cost of the annual housing tax.

The benefit is established only for one apartment

How to pay tax on the sale of an apartment in 2021 and 2021

At the beginning of 2021, a law came into force that changed the tax conditions for the sale of an apartment.

There are nuances for those who have owned a home for more than three or five years, and for those who are selling their only home. There are situations when the tax must be calculated from the cadastral value, and when there are situations from the real value specified in the contract.

If you sold your only home

You definitely don’t owe anything for selling an apartment if it’s your only home.

, and
you became its owner more than three years ago
. And it doesn’t matter how exactly they became - bought, received as a gift or as an inheritance.

Example. You bought an apartment in 2014, and in 2021 you decided to sell it. You no longer own any housing. There is no need to pay tax.

If you bought your only home and then sold it before three years have passed, you need to pay tax.

What is a “single dwelling”?

To be considered your only home, you must not own any other residential premises. It is important to consider the following nuances:

Housing is considered not only an apartment, but also a residential building, and a room in a communal apartment - that is, any living space. But there are no apartments, since this is a non-residential premises.
Shared ownership is also taken into account - for example, if you own an apartment and also a share in a communal room together with a relative, then this will no longer be the only home.
A partner’s home purchased during marriage is also considered property. For example, you have an apartment. After registering the marriage, the partner purchased a room. Since this happens with your notarial consent and by law such housing is considered common, it means that you lose your status as the owner of the only home.

How to apply for a tax benefit?

In order to receive a benefit, you must establish the status of a benefit category. For pensioners, the retirement age for men is 60 years, for women - 55 years.

Also, benefits are provided to citizens who received pension benefits ahead of schedule, these are:

Retired military personnel;
People who worked underground - miners;
Citizens who have worked for a certain period of time in the far north;
People who retired due to long service;
Citizens with disabilities of the first and second groups;
Guardians of minor children with disabilities.

To apply for a benefit, you need to collect a package of documents and submit it along with a written application to the Fiscal Tax Service.

List of required documents:

Application for granting a citizen a tax benefit;
A copy and original document confirming the applicant’s identity - passport;
A document confirming the status of a beneficiary - a pensioner's certificate, a disabled person's certificate;
Copy and original TIN;
Documents confirming the applicant's ownership of the property.

A sample according to which the application is written is available in every territorial branch of the fiscal service of the Russian Federation.

If the applicant for a benefit cannot personally submit an application, then the application can be submitted by the legal representative of the pensioner on the basis of a notarized power of attorney.

If an application to the territorial tax office is submitted by a legal representative, then this should be indicated at the very beginning of the application.

The application is drawn up in 2 copies and, together with a package of necessary documents, is submitted to the tax inspector.

On the second copy, the inspector marks the receipt of the application and package of documents.

Contents of a pensioner's application for a tax benefit:

Full name of the applicant for the benefit;
Passport details;
TIN information;
The address where the applicant lives;
Phone number;
Full information about the privatized apartment - its area, cadastral estimated value;
A complete list of all documents attached to this application.

You can submit the application yourself to the Federal Tax Service, or you can use postal services, or register on the official website of the Federal Tax Service and send documents by email.

To register on the site, you must obtain an individual electronic key from the tax office to enter your personal electronic account and an electronic signature.

How to pay tax

From 2021, in order to pay tax, you need to follow new rules.
The duty base was previously set by the BTI, but now this issue is regulated by Rosreestr. It is not the technical characteristics of housing that are taken into account, but its regional market value. To pay, persons registered as owners after 2016 act as follows:

Notify the tax service about the availability of real estate by filling out a form. It is on the Federal Tax Service website;
Provide notification to the territorial office at the place of residence or property registration;
Submit an application in your personal account on the Federal Tax Service website.

Important! Documents are provided before the beginning of the new year.

Size

The Tax Code of the Russian Federation does not specify the specific rate. It is set for a specific region. As an example, here is the fee for Moscow residents in 2021:

less than 10 million rubles. - 0.1%;
10-20 million rubles. — 0.15%;
20-50 million rubles. - 0.2%;
50-300 million rubles. — 0.3%;
over 300 million rubles. — 2%.

The amount of payments is calculated by tax authorities every year, after receipt and processing of information from Rosreestr.

Calculation of the amount

From 2021, the calculation is carried out according to a new scheme, when the cadastral value is taken as the maximum figure with a coefficient of 0.7. The reduction value is 0.4. To make calculations, you will need to multiply the tax amount by the cost of housing and subtract the coefficient.

Example

The apartment was bought for 8.4 million rubles. The sale price was 10.6 million. The calculation with compensation for purchase costs will be as follows: (8.4 - 1) x 13% = 962,000 rubles. (10.6 - 8.4) x 13% = 286,000 rubles.

The apartment was purchased in 2021 for 5.8 million rubles. In 2021 it was sold for 7.3 million rubles. After the cadastral assessment, the cost became 8.9 million rubles. We multiply the cadastral value by 0.7. We receive 6.2 million rubles, which is less than the contract price. We calculate personal income tax based on the contract price: (7.3 - 5.8) x 13% = 195,000 rubles.

Where to find out the rate

Since the total amount of tax is determined by the region, you can familiarize yourself with the regulations of the authorities in periodicals, on the organization’s website or during a personal visit.
The second point is the cadastral value, which will be calculated on the Rosreestr resource:

Go to the “Individuals” section;
Select the tab on obtaining cadastral valuation information;
Click “Find out more”, enter the registration number and address of the object.

Advice! You can make an appointment with a civil servant - he will need to present a declaration and other documents upon request.

List of documents

To receive a property deduction or pay a duty on a privatization transaction, you will need the following documents:

declaration 3-NDFL;
certificate 2-NDFL;
copy of internal passport;
application for tax deduction or refund;
contract of sale;
payment receipts;
Declaration of registration of ownership.

Important! Copies of documents must be notarized.

Terms and procedure of payment

To pay the tax, you must contact the territorial department of the Federal Tax Service before January 1, 2021.
If you submit documents later, a fine will be imposed for failure to provide data. To receive the benefit, you must submit papers before November 1, 2021. Payment deadlines are until October 1, 2021. Deductions from the sale of an apartment are made until July 15, 2021, provided that you sold the property in 2021 and submitted the declaration before the end of April 2021.

Where to pay?

Information about the owners of privatized apartments, immediately after the completion of the privatization process, is transferred by state executive bodies to the Federal Tax Service independently, without involving the owners themselves to do this.

You can fill out an application form for payment of this type of tax yourself at the territorial office of the fiscal service, or using an electronic key on the official website of the Federal Tax Service of the Russian Federation.

30 days before the tax payment, the owner of the privatized apartment receives a notification about the amount of tax and a receipt form for its payment.

The notice must contain the following information:

Type of taxation;
Name of the taxable living space and its address;
Amount of payment;
By what date must the payment be made?

If you do not receive a notification, then the information can be obtained on the official website of the Federal Tax Service, or you can personally visit the territorial tax office to find out the necessary information about the amount of payment for a privatized apartment.

You must inform the tax office that you have not received a notice and receipt for payment.

All taxes related to real estate must be paid before 01.10. 2021 calendar year.