Each taxpayer during the construction of a residential building who has not yet used a property deduction has the right to receive a tax deduction up to a maximum amount of 2,000,000 rubles. The maximum amount of income tax that you will receive in your hands is 260,000 rubles.

In this article we will look at the following issues in more detail:

• How to get income tax when building a house

• Costs of building a residential building

• List of required documents for income tax refund

• Methods for filling out and submitting a declaration to the tax office

Property deduction for building a house

You can receive a deduction for the costs of constructing a residential building only after the registration of ownership.

There is no statute of limitations for the property deduction, but it can be returned only for the three years preceding the filing of the declaration and only for income received in the year of registration of property rights and later.

The legislator grants the taxpayer the right to take advantage of the property tax deduction only once. If the property deduction cannot be used in full during the tax period, the balance is carried over to the next year and beyond.

The maximum tax deduction cannot exceed 2,000,000 rubles, excluding amounts used to pay off interest (if a mortgage was taken out for the construction of a house).

The costs of constructing a residential building are:

• costs for the development of design and estimate documentation;

• expenses for the purchase of construction and finishing materials;

• expenses associated with the work or services of a construction company for the construction, completion of a house, or finishing of a house;

• expenses for the purchase of a residential building, including those with unfinished construction;

• costs associated with connecting to electricity, water supply, gas supply and sewerage networks.

List of necessary documents for obtaining income tax when building a house

To reimburse the deduction for the construction of a house, you must prepare the following package of documents:

• Declaration in form 3-NDFL;

• A copy of the Certificate of registration of ownership of the house;

• Copy of the passport;

• Copy of TIN certificate;

• Certificate of income in form 2-NDFL for the reporting year (from all places of work for the reporting year);

• A copy of the loan agreement (if a construction loan was taken out);

• A copy of the Certificate of registration of ownership of the land plot;

• A copy of the contract with the construction company;

• A copy of payment orders, cash receipts, invoices confirming the cost of expensive construction materials;

• Application addressed to the head of the tax authority at the place of registration for the provision of a property deduction;

• An application addressed to the head of the tax authority at your place of registration for a refund of income tax to your personal account;

Methods for filling out and submitting the 3-NDFL declaration

Drawing up a 3-NDFL declaration to receive a property deduction for building a house is a complex procedure; in order to prepare the necessary package of documents, draw up a declaration and submit them to the tax office, it will take you a lot of time. If an error is made, you will have to re-draw up the declaration and submit it to the tax authority again, thereby increasing the period for consideration and payment of the deduction.

Therefore, we recommend contacting specialized accounting companies, such as BUKHprofi. BUHprofi specialists will draw up a declaration and prepare all the necessary documents and applications within a day. Next, the company's courier will meet you at a place convenient for you to sign the declaration and applications, followed by submission to the tax authority.

This method is not only convenient, but also reliable: it minimizes the risk of an erroneously drawn up declaration, as well as distortion of the submitted data.

Since January 2016, the mechanism for receiving during the construction of a house has undergone major changes.

Current legal provisions

Since January 2016, you can specify any price for a house. However, there are pitfalls here too. When indicating the price of a house, you should not deliberately overestimate or underestimate it, as this may lead to adverse consequences in the form of legal measures from government authorities. If the price is underestimated, then, based on the product by a coefficient of 0.7, the Federal Tax Service can independently charge additional personal income tax.

If the cadastral value of the house has not been determined by January 1 of the year in which government authorities officially formalized the transfer of ownership, will not be taken into account.

Normative base

1. Tax Code of the Russian Federation, part two, chapter 23.
2. Letters from the Ministry of Finance of the Russian Federation on tax deductions (No. 03-04-05/20406, 03-04-05/21195, 03-04-05/22395, 03-04-05/23340, 03-04-05/40681).

Who can get a deduction

The following persons can apply for a tax deduction:

1. Owner. It is important to know that if a house has several owners, the amount must be divided between them in proportion to their shares.
2. Husband or wife of the owner.
3. Parents of a minor child, if the house or plot of land is registered in his name.

House construction costs

They include:

• costs for preparing documentation for a construction project or estimates;
• purchase of construction and finishing items;
• purchase of an unfinished construction project with a view to completing it in the future;
• payment for work or services provided in connection with the construction of a house, completion of an unfinished construction project or finishing work (this may include the purchase of necessary materials, payment of workers);
• installation of sewerage, water supply, gas pipes.

It is important to know that if previously a person applied for a deduction in one tax period, and then began repairs or additions and subsequently applied for a deduction for repairs, he was refused. This problem was solved thanks to the judges of the Supreme Court of the Russian Federation. According to a review of judicial practice on tax issues, Chapter 23 of the Tax Code of the Russian Federation, this practice violates the rights of citizens to receive deductions.

Therefore, applying in subsequent tax periods for a deduction when carrying out finishing work in the house will not be considered repeated, and the deduction must be provided. It is possible to calmly complete the construction of your home over any convenient period of time. You just need to indicate the new expenses in the declaration.

Return procedure

1. Must be filled out. If it states an amount that needs to be refunded, you will need to fill out a refund application due to construction costs.
2. You will need to provide a 2-NDFL certificate. If you are employed, you can contact the employer's accounting department. If you are an individual entrepreneur, you will need to fill it out yourself. This document indicates the amount of all income and taxes paid.
3. Be sure to make copies of all supporting documents.
4. Make copies of payment documents.
5. Give copies of documents to the Federal Tax Service. Take the original documents with you; the tax office may require them.

Deadlines

It’s very convenient that now There are no restrictions on the period for receiving a deduction.

For construction and finishing work over several years, deductions can only be received for expenses incurred over the past three years.

In the year of filing your application, you are required to be officially registered in the workplace and pay taxes.

Documentation

It is required to provide a 2-NDFL certificate and a 3-NDFL declaration.

About the ownership of the house:

• certificate of state registration of ownership of a house and a plot of land (if it was purchased for the construction of a house);
• loan, mortgage or credit agreement;
• repayment and payment schedule.

Payment:

• checks;
• receipts for receipt orders;
• acts confirming the purchase of building materials from citizens (valid when passport data is indicated in them);
• bank statements;
• extract from the citizen’s personal account;
• certificates from the bank about the percentage paid.

If the house was purchased by spouses:

• a copy of the marriage certificate;
• a written agreement on the division of deductions between husband and wife.

If you decide not to wait until the tax period ends and receive the deduction earlier, then provide the employer with the following documents:

• statement;
• copies of documents on the right to deduction.

Where to contact

You can contact to the tax office or to your employer. In the first case, you need to wait until the end of the tax period, in the second, this is not required. When contacting your employer, provide him with the documents specified in the previous section. Then contact the tax office and submit an application for a deduction and copies of supporting documents.

Be sure to take the originals with you. After a month, pick up the notice from the tax office, and then submit it to your employer’s accounting department.

For pensioners

It often happens that a citizen built a house, but retired before receiving the deduction. It is important to remember that if during the three tax periods before retirement you worked under a formal employment contract and paid taxes regularly, your right is valid.

If you continue to work after retirement, find another job, receive income from renting out any property, or have another official source of taxable income, the right to deduction is not limited to three years.

If construction is on a summer cottage

1. The deduction applies to the house itself and to the plot of land.
2. In the documents, an existing house should not be indicated as a garden, country house or non-residential building.

Construction on credit

You can get a loan from a bank to build a house. In this case, the list of required documentation only expands.

Situations

Is it possible to include in the deduction amount the owner’s expenses for finishing work for the house if they were incurred by him after the registration and issuance of a certificate of ownership?

Yes, if the owner has documents confirming that finishing work on this house has not been carried out previously.

Can a woman on maternity leave claim a deduction?

If a woman incurred expenses before maternity leave, she can receive a deduction without going to work. This issue has long remained controversial in the practice of tax authorities. Deductions are provided for each month, including months in which there was no income.

Can a man claim a deduction for his wife if the house is registered in her name and she is on maternity leave?

Yes, since property acquired during marriage is the common property of the spouses.

Does a pensioner have the right to claim payment of a deduction in the current year if he received it earlier for another object?

It can’t, because he had already exercised his right before. There are no grounds for receiving a deduction for the house.

Expert consultation

In the video below, Stanislav Dzhaarbekov, an expert in the field of taxation, explains the procedure for obtaining a tax deduction when purchasing or constructing housing.

Surely many citizens of our country are interested in this question: is it possible to get a tax deduction when building a residential building?

What legislation governs this issue? What documents are needed to obtain it?

Do I need to confirm financial expenses and how? What is the procedure for receiving a deduction?

Let's look at these questions in more detail.

Legislative regulation

Every citizen of the Russian Federation can receive this type of deduction when constructing a residential building in such situations:

• in case of construction of a residential building. In accordance with current legislation, this type of deduction is due in the process of constructing a residential building with the further right to register citizens in it. If the house was built without the possibility of registering citizens in it, it will be impossible to obtain a deduction;
• An unfinished residential building was purchased and subsequently its completion was completed. In this case, it is necessary to understand that this house must be registered under a purchase and sale agreement as an object that is directly unfinished. Otherwise, citizens can only rely on deductions directly for financial expenses, but not for construction expenses.

In addition to these main legislative acts, there are additional bills that only complement them.

It is also worth noting that the issue of obtaining a tax deduction is clearly stated in such legislative norms:

1. Article No. 220 of the Tax Code of the Russian Federation, which provides for the possibility of obtaining this deduction;
2. Federal Law No. 212, which regulates the procedure for obtaining this type of deduction;
3. Letter of the Ministry of Finance No. 03-04, which clearly regulates the issue of obtaining a tax deduction for both the spouse and the spouse.

At the same time, we take into account the fact that, according to the current legislation of the Russian Federation, those citizens who began building their houses in 2014 have the right to return again.

To whom and when is it due?

According to Article No. 220 of the Tax Code of the Russian Federation, the right to a tax deduction can arise only in cases where ownership of the constructed residential building has already been registered.

Moreover, you can receive a tax deduction only at the end of the year in which the right to register it and further receive it directly arose.

If, for example, the right to receive a tax deduction arose in 2018, you can only receive it in 2019. It will simply be impossible to get it before this year.

Let's consider a simple situation. Alekseev A.A began construction of a residential building in 2014. In 2017, he finally completed this construction, and already in 2018 he received ownership rights to it, as well as a certificate of state registration of rights to this type of real estate.

For this reason, already in January 2019 Alekseev A.A. has every reason to apply for a tax deduction for the construction of a residential building.

It is also necessary to pay attention to the fact that it is not at all necessary to submit documents after the registration process of a residential building. The right to a tax deduction itself does not have a statute of limitations, but there is a small nuance: the tax can be returned exclusively for the last 3 years, prior to when the relevant documents will be submitted.

List of expenses

According to Art. No. 220 of the Tax Code of the Russian Federation, when registering a property deduction it can be included costs incurred by the applicant for:

At the same time, all expenses must be confirmed in documentary form, otherwise it will simply be impossible to receive a deduction.

What not to include

According to the same legislation, deduction impossible to turn on the following list of costs:

• redevelopment of a residential building;
• which were directly for the reconstruction of a residential building;
• for installation of plumbing fixtures, shower cabins and other equipment;
• for the construction of additional buildings in addition to the residential building itself. These may include baths, outbuildings, and so on.

Package of necessary documents

In order to be eligible to receive a tax deduction, you must prepare list of such documentation:

• fill out and submit a declaration in form 3-NDFL;
• original and copy of the certificate of registration of ownership of the house;
• copies of all documents that can confirm the costs of building a house;
• application for a tax refund;
• documents that can confirm the fact of tax payment. This document is a certificate in form 2-NDFL;
• original and copy of the applicant's passport.

It is also worth paying attention to the fact that as supporting documents on the issue of costs, the following may be advocated:

• for an individual - a copy of the agreement, a copy of receipts, and so on (checks can be provided);
• for legal entities - copies of agreements with construction companies, copies of payments, and so on.

In the event that citizens plan to receive a tax deduction on interest, it is also necessary to collect and attach a list of such additional documentation:

• a copy of the loan agreement. Upon request, the original itself can be provided;
• a certificate confirming the deduction of interest on the loan.

Registration procedure

In order to be able to receive this deduction you can contact:

For the first option, it is enough just to wait until the end of the tax period, but for the second case there is no need to do this.

After this, the applicant for the deduction must contact the tax office at his place of residence and submit a corresponding application. It must be remembered that its sample can be taken directly from the tax service and compiled under the close supervision of their employees in order to avoid mistakes.

In addition to the copies of the documents themselves, it is also necessary to present their originals for comparison. A month after submitting the application, you should contact the tax office again, receive a notification and take it to the accounting department at your place of official employment.

In this case, it is necessary to take into account the fact that the taxpayer has the right to choose method of obtaining this deduction at your discretion, namely:

• receive a refund annually directly from the fiscal service. With this method, the tax office checks financial costs and charges payments;
• or receive a monthly deduction directly from your employer. With this method, an employee of an enterprise has the right to receive a deduction only if his annual income is significantly lower than the deduction entitled to him.

Dimensions

If we talk directly about the tax deduction that can be obtained for the construction or completion of a residential building, it is carried out in a standard manner, as for other types of property deduction.

It is necessary to take into account the fact that according to the current legislation, 13% of the total amount of financial costs can be returned as a tax deduction. There is a small nuance to this. It lies in the fact that the tax deduction cannot exceed 2 million rubles. In simple words, the amount can be calculated as follows: 2 million * 13% = 260,000 thousand rubles.

Moreover, every year, every citizen of the Russian Federation has the right to return an amount that does not exceed that transferred to the income tax budget. But this also takes into account the fact that the balance of the deduction can be carried forward to the next year until the entire amount to the recipient is repaid in full.

If citizens took out a mortgage loan for the construction of a residential building, then they have every right to receive a tax deduction directly on the interest paid.

Features of obtaining funds for unfinished construction of a house

First of all, it is necessary to pay attention to the fact that according to the current legislation of the Russian Federation, citizens do not have the right to receive a tax deduction for a house whose construction has not yet been completed.

Thus, until the applicant for this deduction has a certificate of ownership of the residential building in hand, he has no rights to apply for this type of deduction.

In simple terms, until the house is fully put into operation, it is not possible to return personal income tax on it.

In the event that the construction was not completed, but all the documents are already in hand, then a personal income tax refund is possible.

As you can see, there are no particular difficulties in returning the deduction. All you need to do is know and follow the rules provided by law.

The receipt of this deduction is described in the following video:

02.02.2016

Taxpayers who buy housing (houses, apartments, rooms, etc.), build it or acquire a plot of land for these purposes have the right to property tax deductions.

Property tax deduction is provided when purchasing or building a house. A deduction is also provided for the cost of repaying interest on loans for the purchase of housing or land.

For what expenses is a property deduction provided in 2016?

The property tax deduction consists of three parts and is provided for expenses:

• For new construction or acquisition on the territory of the Russian Federation of residential real estate (shares in them), land plots for them.

• To repay interest on targeted loans (credits) received from Russian organizations or individual entrepreneurs, actually spent on new construction or the acquisition of housing (share(s) in it) and land for it on the territory of the Russian Federation.

• To repay interest on loans received from Russian banks, for refinancing (on-lending) loans (credits) for the construction or acquisition of housing (share(s) in it), a land plot for it, on the territory of the Russian Federation.

The maximum amount of expenses for new construction or purchase of housing in the Russian Federation, from which the property deduction will be calculated, is 2 million rubles. If the property was acquired after January 1, 2014, the deduction limit applies to expenses incurred for the acquisition of one or more real estate properties.

The maximum amount of expenses for the construction and purchase of housing and land for it when repaying interest on targeted loans or credits is 3 million rubles. The restriction applies to loans (credits) received after January 1, 2014. The amounts of interest paid on targeted loans (credits) received before 2014 can be included in the property deduction in full without any restrictions.
If the taxpayer has exercised the right to receive a property tax deduction not in full, the remainder of the deduction can be carried forward to subsequent tax periods until it is fully used (clause 2, clause 1, article 220 of the Tax Code of the Russian Federation).

The expenses taken into account when calculating the 2016 property tax deduction include:

For new construction or acquisition of a residential building (share/shares in it) on the territory of the Russian Federation:

• development of design and estimate documentation;
• purchase of construction and finishing materials;
• the actual acquisition of a residential building (share(s) in it), including at the stage of unfinished construction;
• construction (completion) and finishing works or services;
• organization of electricity, water and gas supply and sewerage (including autonomous) at a residential property.

When purchasing an apartment or room (shares/shares in them) in the Russian Federation:

• the actual purchase of an apartment or room (shares/shares in them);
• acquisition of rights to an apartment or room (shares/interests in them) in a house under construction;
• purchase of finishing materials;
• work related to the finishing of an apartment or room (shares/shares in them), including the development of design and estimate documentation for finishing work.

Expenses for the completion and finishing of a purchased house or finishing of a purchased apartment or room can be deducted only if the relevant agreement specifies the acquisition of an unfinished residential building, or an apartment or room (rights to them) without finishing.

Other expenses are not taken into account as part of the 2016 property tax deduction. For example, these are expenses associated with the redevelopment and reconstruction of premises, the purchase of plumbing and other equipment, execution of transactions, etc.

How to get a property deduction

1. Fill out a tax return in form 3-NDFL. If it calculates the amount of tax to be refunded from the budget, then you must also write an application for a personal income tax refund in connection with the costs of purchasing property.

2. Obtain from the accounting department at your place of work a certificate of the amounts of accrued and withheld taxes for the corresponding year in form 2-NDFL.

3. Prepare copies of payment documents:

• confirming the taxpayer's expenses when purchasing property (receipts for receipt orders, bank statements about the transfer of funds from the buyer's account to the seller's account, sales and cash receipts, acts on the purchase of materials from individuals indicating the address and passport details of the seller and other documents) ;

• evidencing the payment of interest under a target credit agreement or loan agreement, mortgage agreement (in the absence or “burnout” of information in cash receipts, such documents can serve as extracts from the taxpayer’s personal accounts, certificates from the organization that issued the loan about the interest paid for using the loan)

4. Make copies of documents confirming the right to housing:

• when constructing or purchasing a residential building - a certificate of state registration of the right to a residential building;
• when purchasing an apartment or room - an agreement on the purchase of an apartment or room, an act on the transfer of the apartment or room (share/shares in it) to the taxpayer, or a certificate of state registration of the right to the apartment or room (share/shares in it);
• when purchasing a land plot for construction or for finished housing (shares/shares in it) - a certificate of state registration of ownership of the land plot or share/shares in it and a certificate of state registration of ownership of a residential building or share/shares in it;
• when repaying interest on targeted loans (credits) - a targeted credit agreement or loan agreement, a mortgage agreement concluded with credit or other organizations, a schedule for repaying the loan (loan) and paying interest for the use of borrowed funds.

5. If the property was acquired into common ownership, you will also need:

• a copy of the marriage certificate;
• a written statement (agreement) on the agreement of the parties to the transaction on the distribution of the amount of the property tax deduction between the spouses.

6. Provide the tax office at your place of residence with a completed tax return with copies of documents confirming actual expenses and the right to receive a deduction when purchasing property. You must have their originals with you for verification by the tax inspector.

In what cases will it not be possible to obtain a property deduction?

Property tax deduction does not apply in the following cases:

• if the purchase and sale transaction is concluded with a citizen who is interdependent in relation to the taxpayer.
• if payment for the construction (purchase) of housing was made at the expense of employers or other persons, funds from maternal (family) capital, as well as from budgetary funds;

Interdependent persons are recognized as: an individual, his spouse, parents (including adoptive parents), children (including adopted children), full and half brothers and sisters, guardian (trustee) and ward (Article 105.1 of the Tax Code of the Russian Federation).

When purchasing property in common shared ownership before January 1, 2014, the amount of the deduction is distributed among the co-owners in accordance with their share/shares of ownership. If it was purchased later, a property deduction is provided in the amount of actual expenses incurred by each of the co-owners within the limits of the overall established deduction limit. At the same time, parents who have minor children and purchase housing in common shared ownership with them have the right to apply a property tax deduction without distribution by shares.

If housing was purchased under an exchange agreement with an additional payment, this is not a reason for refusing to receive a property deduction, since the Tax Code does not prohibit this option for purchasing housing.

Property acquired by spouses during marriage is their joint property, therefore they both have the right to a property tax deduction, including the right to distribute it by agreement.

Do you know that the cost of building a house can be reduced and this can be done on the basis of the law? The Tax Code of the Russian Federation provides for working citizens such a support measure as a property deduction. When building a house and finishing it, the state will return part of the funds; you just need to provide a package of documents to your tax agent.

What is a tax deduction

A tax deduction is a portion of the tax that is returned to the taxpayer. The Tax Code of the Russian Federation provides for the construction of a residential building. Thus, the state seeks to stimulate the construction of new houses and make ready-made houses and apartments more affordable.

Who can count on receiving a deduction

All working citizens of the Russian Federation, whose income tax is 13%, are entitled to receive a property deduction for the construction of a house. The main thing is that they have Russian citizenship and pay taxes to the treasury, i.e. worked officially on the territory of Russia.

They are entitled to a refund in an amount equal to the full income tax rate when purchasing a plot of individual housing construction, for payment for development work, as well as for the cost of purchasing building materials.

What are the conditions for its provision?

The conditions for providing a tax deduction for the construction of a new house are specified in According to the law, it is provided to a citizen for:

• costs for developing a house project;
• expenses for the purchase of building materials;
• expenses for paying construction workers, architects and other specialists taking part in construction;
• costs for connecting to utilities.

Deductions are provided only for the above expenses. They will not be provided for any others that do not fit this description. You will not be able to receive a deduction for the purchased concrete mixer or drill, since they do not belong to any of the above categories.

What documents are needed to obtain

In order to exercise your right, you must collect a set of documents confirming your identity and right. Below are the documents for property deductions during the construction of a house that the tax agent will require from you:

• photocopy of passport;
• application for a deduction for the construction of a house (this information should be indicated in the document);
• income certificate;
• income statement;
• a document confirming ownership of the plot;
• a copy of the certificate for the land plot;
• a copy of the construction contract;
• checks, receipts, any documents confirming the amount of construction expenses.

If you have minor children in your family, you must also provide a birth certificate for each child. If you have at least one adopted child, you will have to provide a decision from the guardianship and trusteeship authorities that the child is in your care.

The money is not returned in cash or to a personal bank account. They are issued along with wages at the place of work at the cash desk or on a work bank card. Moreover, if you work 2-3 jobs at once, you have the right to receive it from all places of work. In this case, copies of the documents should be provided to all employers acting as tax agents.

According to the law, you do not have to submit an income tax return. However, this document contains information that will take some time for the tax authorities themselves to obtain. To speed up the application review process, it is better to fill out and submit the declaration.

Deduction amounts

The amount of the deduction depends on the amount of money spent on the purchase of building materials, payment of workers, etc. In accordance with the law, you have the right to a property deduction in the amount of up to 2 million rubles. However, if housing is not being built for living in, but for sale, then the amount will be no more than 250 thousand rubles, provided that the value of the real estate is less than 1 million rubles. In this case, the time factor should be taken into account. The maximum amount of property deduction for the construction of a house is equal to the amount that was provided in the month when the balance was formed, carried forward to subsequent periods.

A property deduction is not provided if the housing was purchased or built with maternity capital funds or employer funds. It is also not provided to non-working pensioners, since the pension is not taxed, which means there is nothing to deduct.

Is it possible to get a deduction for unfinished housing?

It often happens that not just a plot or house plan is purchased, but an already rebuilt or almost completed building. For example, a plot of land has been purchased on which the foundation and basement have already been erected. In this case, can you expect to receive a deduction for an unfinished house? The law states that you can get it not only for the purchase of a plot, but also for an unfinished house, and even for its finishing (if the house is built, but there is no finishing in it).

Naturally, you will not be able to receive a deduction for the funds that the previous owner spent on the construction of a private house. You will also have to document that you received an unfinished house. That is, it makes sense to register all those buildings and document what was actually done before the previous owner purchased the house. This must be done immediately after purchase, so that later there are no misunderstandings when determining the amount of tax deduction for the construction of a new house.

To receive a deduction for an unfinished building, in addition to the documents that are submitted when building a house from scratch, you must also provide an acceptance certificate for unfinished housing. This is true even if you have purchased a share in it.

To receive a property deduction for building a house, you should contact your employer. If you work for a large enterprise and you do not have direct access to your manager, your application must be submitted to the human resources department. If it is not possible to contact the employer, the application and package of documents can be submitted at the nearest tax office.

Is it possible to get the deduction again?

The law does not provide for receiving a tax deduction again. Even if you buy another home or change jobs, you cannot count on receiving a deduction for building a house a second time.

Every citizen has the right to receive a property deduction for the construction of a house. The law allows you to take advantage of a tax deduction for the construction of a house, for example, the other spouse, adults, working children and other family members, but only with their permission.

Is it possible to get the balance as a deduction?

It happens that during the construction of a private house, not the entire amount of the deduction provided by law was spent. For example, during the construction of a house you were able to reimburse the amount of less than 2 million rubles. Then you or someone in your family decided to build another house. Can I use the remaining funds? If you are not engaged in the construction of houses exclusively intended for their subsequent sale, then you can, but only within the remaining amount and subject to the conditions prescribed in Article 220 of the Tax Code of the Russian Federation.

How is the deduction calculated for shared participation in an apartment building?

Property tax deductions for construction and finishing can be provided if the taxpayer has a certificate confirming ownership of the purchased housing. It must be submitted along with the application. Moreover, you can get it not only from purchased building materials, but also from interest on the loan, if a residential building was erected with the amount received.

If you participate, you will be able to receive it only after the house is put into operation, since only after that a certificate will be issued. Until you have this document, you will not be able to receive a property tax deduction for shared construction. A certificate of ownership is included in the mandatory package of documents, given that not everything is clear with construction companies in Russia yet. If the construction period specified in the contract is more than 3 years, you will not be able to receive a deduction.

Payment procedure

As soon as the opportunity arises to receive a property deduction during construction, it is necessary to submit a pre-prepared package of documents to the employer or to the tax department. Within 3 months, the tax service will check the documents, and if there are no reasons for refusal, the deduction will be credited and issued along with the salary.

If a decision has not been made within 3 months, the taxpayer has the right to demand from the tax service the transfer of penalties in the amount of the current refinancing rate.

If the deduction is refused due to an incorrectly completed package of documents (there are no certificates, the wrong data is provided), the request can be made again.

The tax authorities send the decision on refusal or issue by mail to the taxpayer’s place of residence. At the same time, they must indicate the reason for refusing to issue a property tax deduction. They are required to send written explanations to you by mail at your residential address.

Possible problems

When returning funds, problems may arise that will lead to you losing the opportunity to receive a property deduction:

• Due to the length of construction work. In order to receive a deduction, you must provide an acceptance certificate. If for some reason the construction has been delayed for more than 3 years, it will no longer be possible to obtain it.
• Delay in processing documents confirming ownership. Most often, participants in shared construction encounter this problem when the construction company fails to complete the construction within the deadlines specified in the contract or does not complete it at all.
• The emergence of controversial situations when checking documentation by tax authorities. Officials may require additional certificates or confirmation of the legality of transactions. Sometimes they do not indicate the reasons for the refusal, which is a violation of the law.
• Unscrupulous developers. This is one of the most common reasons why tax deductions are not provided. In their desire to earn as much as possible, they often forge documents, delay the completion of the project, and indicate other prices in the documents.

If the above problems arise, you should go to court. This is the only way to get the funds you are rightfully entitled to and resolve the controversial situation, or at least punish those responsible for preventing you from exercising your right.

Instead of a conclusion

Property tax deductions for the construction of a house are a legal right to reimburse, if not all the funds spent, then at least part of them. Construction of a residential building is not cheap. If there is an opportunity to save through tax deductions, it would be irrational not to take advantage of it.