How to get a property tax deduction

Taxation always significantly impacts our finances. The fact is that he is subjected to any of our transactions, during which we make a profit. Taxes are paid in the event that we buy or sell real estate or property. However, even here there are several loopholes that allow you to cut taxes. One of them is a property tax deduction. What is it and how to get it?

All owners, including future ones, should remember this important information: each person can receive a property tax deduction only once in a lifetime. That is, as soon as you apply for this operation, you are returned some amount that you paid as a tax on the sale of an apartment, your name appeared in the database by deductions. The second time to file such a petition you already have no right. The next important question: who has the right to a property deduction when buying an apartment? These are all people who live in the country regularly and regularly pay taxes. However, there are a couple of nuances: an apartment or a house must be bought by them from their own funds or by a mortgage. If the apartment was purchased for them by relatives, the employer and other individuals, there is no property tax deduction. The deduction can be obtained only by those people who have made transactions since 2001. It was at this time that the law on this tax bonus came into force. However, the property tax deduction has a shelf life: the amount paid for real estate taxes can be returned until three years have passed since the sale-purchase transaction. If the period has expired, the owner automatically loses the right to this benefit on this transaction. However, he has a chance to use this bonus if he again makes a property transaction.

There are other nuances: parents are paid a property deduction for children. However, this only happens if the child is not an adult. In this case, the amount of repayment will be calculated from the total tax paid, and not from any part of it. If the child has already reached the age of majority and is the same owner of the apartment as you, he can receive a property tax deduction for himself. By the way, the repayable amount, which he will receive, will be several times higher than yours. However, from that moment he loses the right to this privilege. We remind you that every citizen of the country can receive a property tax deduction only once in a lifetime. So try to take this chance with the mind and benefit for yourself.

Where do you provide the documents, and what package is the tax service needed to pay you the deduction? You must transfer the application to the department of the tax inspection, where you executed your purchase transaction and paid the entire amount of tax. Together with a statement written strictly on the model, you must provide the following package of documents: first of all, this is a contract in which the fact of the transaction on the acquisition of property is confirmed. The second important document is a paper that is evidence that you are the owner of an apartment or house. If you participated in shared construction, the certificate of ownership will serve as an act of acceptance and transfer of a construction project.

Next, you need to bring a paper that confirms that you have transferred the n-th amount of money to the seller. This can be a receipt, a receipt, a check, etc. If the property was purchased by you on credit, then you must bring to the tax authority a certificate from the bank about what interest was paid. And also the very copy of the loan agreement.

It is also necessary to provide papers from all work places that you paid taxes at a 13 percent rate. Especially it concerns the period when you bought an apartment and demand a property tax deduction. By the way, the property for which these benefits are based is only living quarters. The purchase of land in this case is not taken into account.