Tax Code, art. 220. Property Tax Deductions

The rules, in accordance with which mandatory contributions to the budget are implemented, establishes the Tax Code. Art. 220 defines a number of preferential terms for subjects. They are determined depending on the specifics of deductions and the circumstances of the appearance of the object of taxation. Let's consider further art. 220 of the Tax Code of the Russian Federation with commentaries. In the material, the main provisions of the norm will be disclosed, notes and explanations to them will be given.

Art. 220 of the Tax Code of the Russian Federation: property tax deductions

In the process of determining the taxable base, according to clause 3 of rule 210, the subject has the right to reduce the amount of deductions to the budget. In particular, it can receive a property tax deduction when selling property, a stake in it or the authorized capital of the company. This possibility occurs when:

1. Exit the organization.
2. Transfer of funds in connection with the liquidation of society.
3. Decrease of the nominal value of the share in the authorized capital.
4. Assignment, if an agreement was concluded to purchase an apartment house on the terms of equity participation in construction.

The subject can expect to reduce the mandatory transfer amount in the amount of the redemption price of the land plot or the facility located on it, which it received in kind or in cash when the object is withdrawn for municipal or state needs.

Costs of the entity for the purchase of objects

When determining the base, the subject can compensate for his actual expenses for the purchase of an apartment, a room, a building or shares in them intended for permanent residence, as well as for their new construction. The amount of the deduction can be reduced by the cost of the cost of purchasing the land plot granted to the IZhS, and also within the boundaries of which the structure that is in the possession is located.

Calculation features

A tax deduction is given to the entity in the amount of the expenses incurred for the construction or purchase of one or more objects. However, its size should not be more than 2 million rubles. If the person has taken advantage of this opportunity in part (received less than the established amount), the balance can be taken into account in the future. For example, a person can again reduce the mandatory deduction to the budget when erecting another structure or obtaining an object in personal possession within the amount not used. A similar rule applies to land plots, shares in them. The limit value of a deduction is equal to the size that operated in the period in which the subject first had the opportunity to receive it. When purchasing a land plot or a share in it intended for IZhS, the amount of compulsory deduction can be reduced after obtaining the appropriate title papers in the manner prescribed by the relevant law.

Cost structure

The actual costs of building or buying an object or shares in it may include spending on:

1. Development of estimates and project.
2. Acquisition of finishing and construction materials.
3. Purchase of the structure (shares in it), unfinished construction including.
4. Payment of services for completion or finishing.
5. Connection to networks of water, electricity, gas, sewerage or the creation of autonomous communications.

Expenses for repayment of loans

Art. 220 of the Tax Code allows a reduction in the amount of deductions by the amount of interest paid on loans of a targeted nature that were directed at new construction or purchase of a room, apartment, structure, or shares in them. The same rule applies to a land plot that is transferred to the ownership of a subject for IZHS, and also has a corresponding building or share in it. It is worth noting yet another opportunity, which is provided by the Tax Code. Art. 220 allows a reduction in the amount of budgetary allocations by the amount of expenses for repaying interest on loans received from banking organizations for on-lending (refinancing) loans for new construction / purchase of an apartment, a building, a room or shares therein. The same applies to land plots that are converted into property, including when there is an object on them.

Conditions

The opportunities provided for in Clause 1, Article. 220 of the Tax Code of the Russian Federation, are provided taking into account a number of features. In particular, the size of the proceeds is taken into account. The subject can reduce the amount of budgetary allocation to:

1. Revenues from the sale of real estate (apartments, rooms, structures), including privatized premises, garden, summer cottage facilities, plots or shares in them that were in possession of less than the minimum limit period provided for under the norm 217.1. At the same time, their size should not be generally more than 1 million rubles.
2. Revenues from the sale of other real estate in possession less than the minimum period specified in art. 217.1. The amount of receipts as a whole should not exceed 250 t.
3. Revenues from the sale of property of a different nature, except for securities that were in possession less than 3 years. The amount of income should not be more than 250 thousand rubles.

The first subparagraph is effective for objects that are acquired after January 1, 2016.

Other cases

When the property is sold in connection with the liquidation of the company, the withdrawal from it, the reduction of the par value of the share, the cession under the agreement on share participation in construction, the entity can reduce the object of taxation. The amount of confirmed costs relating to the purchase of these valuables is taken into account. The taxpayer's expenses may include:

1. Contributions to the authorized capital when the organization is established or when the company's monetary fund increases.
2. Expenses for purchase or extension of a share.

In the absence of the above expenses certified by the securities, the amount of the budgetary contribution may be reduced by the amount of income received upon termination of participation in the organization. In general, they should not exceed 250 t.

Accounting of receipts

Its order is also defined by the Tax Code. Art. 220 specifies that when transferring a stake in the capital of a company owned by a subject, the costs of obtaining it are taken into account proportionally to its reduction. The profit can be paid to the participant in kind or in cash in connection with the decrease in the volume of the fund of the company. In this case, the money spent by the person for its purchase should be taken into account proportionally to the reduction of the organization's capital. The increase in the enterprise's fund can be due to the revaluation of its assets. In such cases, when the cost of a subject is reduced, they are taken into account in the amount of the payment exceeding the value of the increase in the nominal value of its share.

Liquidation of a foreign company

The Tax Code (Article 220), in this case also provides for the subject's ability to reduce the object of taxation. The procedure extends to the shareholder, the founder, the shareholder, the participant, the controlling person. When selling property obtained upon the termination of the activities of a foreign company or a structure without the formation of a legal entity, the profit from which was exempted from taxation under paragraph 60 of norm 217, the reduction of the object is carried out for an amount equal to the value of material values. It is determined in accordance with the records of the liquidated enterprise. The calculation assumes information summarized as of the date of receipt of property from such organization. It is indicated in the papers that the subject appends to the application. At the same time, the value of the property should not be higher than the market value determined by the provisions of Art. 105.3 TC.

Transactions with a controlled foreign firm

When selling property rights (shares, stakes, including) received from such a company, if its profit in this case and costs in the form of their purchase price are excluded from its revenue / loss in accordance with Cl. 10, Art. 309.1, the entity acting as a controlling or Russian interdependent person, the amount of costs is determined at the lower of the cost:

1. Certified by credentials. Reporting data is taken on the date of transfer of ownership rights from the controlled company. Day is determined by the provisions of Art. 105.3.
2. Market.

In case of sale of property that is in common share or joint ownership, the amount of the deduction is distributed among the co-owners in proportion to the share of each or by agreement.

Exceptions

If the other is not provided for in Art. 220 NK, the provisions of the sub. 1 item 1 does not apply to proceeds received from transactions:

1. With securities.
2. Real estate or vehicles used in the conduct of business.

Opportunity for the subject-donor

When selling property that was received during the disbandment of the trust fund, cancellation of the donation and other cases, the costs are recognized as funds directed at receiving, storing, maintaining material values spent on the date of transfer to their owning capital organization. This provision is effective if the refund is provided for by agreement or Federal Law No. 275. The duration of the property in the possession received by the donor during the disbanding of capital, the cancellation of the donation and in other cases is determined taking into account the period of storage of objects from the subject until the moment of their transfer.

Required papers

The entity wishing to take advantage of the opportunity to reduce the mandatory transfer to the budget must provide documents confirming the ownership of the property:

1. The contract for the purchase of a structure, a room, an apartment, a land plot or a building on it, or a share in them.
2. Agreement on equity participation in construction and transfer act (when acquiring rights to the facility).
3. Sv-in the birth of a child - when parents buy a house, apartment, room, land or shares in them for a minor (or the decision of the authorized body to establish custody of a person under the age of 18).
4. Documents confirming the costs of the subject. These include receipts for warrants, bank statements on the transfer of funds from the buyer's account to the seller's account, cash and commodity checks, acts of purchasing construction materials, etc.

Note

The tax deduction, which is foreseen in the sub. 4 clause 1 of the rule in question in the amount of costs directed to repayment of interest on loans of the target value received before the effective date of FZ No. 212, as well as loans for refinancing these loans, is granted without taking into account the restrictions established by Cl. 220.

The amount of interest reduction

The deduction provided in sub. 4 p. 1 tbsp. 220, is given in the amount of realized costs by%, according to the terms of the agreement with the bank, but not more than 3 million rubles. In this case, the person must have identification papers. They include documents that confirm his right to use the provisions of the rule in question, an agreement with a credit institution. The entity also provides securities certifying the costs incurred to pay back the%.

Restrictions

Tax deductions are not provided for in the part of the subject's expenses for new construction or purchase of a structure, apartment, room (shares in them), covered from the employer's funds or other persons, family (parent) capital sent for additional state support measures, budget. A similar rule applies to transactions made by interdependent natural persons.

Features of subjects

Parents (receptionists including), guardians, trustees who construct or purchase at their own expense facilities, rooms, apartments, land or shares in them for minor children (wards, guardians) may take advantage of the provisions of the rule in question. The amount of deduction is determined in these cases in accordance with the costs incurred, taking into account the restrictions provided for in paragraph 3 of the rule in question.

Submission of documents to the supervisory authority

A tax deduction is granted when the subject passes the declaration at the end of the relevant period, unless otherwise provided in the rule in question. Possibility to reduce the mandatory deduction established in sub. 3 and part 1, a person can avail himself of the above-mentioned deadline when applying (written) to the employer. At the same time, the supervisory inspection must confirm its right to apply the provisions of this rule in a form approved by the executive federal body.

Interaction with the employer

The tax deduction established by sub. 4 point 1 of the norm in question, is granted only for one object. A person can obtain it from one or more employers of his choice. If the deduction was provided by one tax agent and the entity applies to the next employer with the following application, the deduction is reduced in the manner specified in clause 7 of the rule in question. The employer must satisfy the appeal of the person when receiving the relevant paper issued by the control body from him. Confirmation of the right of subjects is carried out by the tax inspection in a period of no more than 30 days. From the date of application.

Additionally

If at the end of the period the amount of all income received by the employer was less than the amount of deductions provided for in clauses 3 and 4 of the rule in question, a person may avail himself of the provisions of clause 7. If the employer has withheld the amounts without taking into account the reduction, the excessively deducted funds are to be returned to The procedure specified in Art. 231.

Conclusion

If in the period deductions established by sub. 3 or 4 of point 1 of the norm in question can not be fully used, the balance can be transferred to the future, unless otherwise provided by this article. In subjects that receive pensions according to the current legislation, the reduction of allocations to the budget can be included in previous years, but not more than three. In this case, they must immediately precede the period in which the transferred residue appeared. Repeated provision of property deductions, stipulated in sub. 3 and 4 of item 1, art. 220 is not allowed.