Of all banking credit products, mortgages are the most onerous and time-consuming. But sometimes it is precisely such a loan that allows citizens to realize their dream of purchasing their own home. In this article we will tell you how to return interest on a mortgage aimed at purchasing real estate using a tax deduction.

According to Russian legislation, a citizen can return part of the funds paid for taxes or reduce the tax itself when buying a home on credit. This deduction option is called property deduction and was created for the purpose of social assistance to citizens who purchase housing with their own money.

The law on the return of part of the amount through a tax deduction is regulated by Chapter 23 of the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation), and various legal acts that correct the registration procedure.

According to the law, every citizen who has official income, which is taxed at a rate of 13% and pays monthly taxes on this income, has the right to social compensation in the form of a 13% refund. It should be understood that part of the amount paid for the loan is returned not by the bank itself, but by the state.

This deduction is called property, is regulated by Article 220 of the Tax Code of the Russian Federation and applies to acquired real estate. It does not matter whether the purchase of a house/apartment was paid for by the citizen immediately from his own funds or issued through a bank targeted loan.

Why exactly 13% is returned from the loan amount?

The fact is that this is exactly what individuals pay, according to clause 1 of Art. 224 of the Tax Code of the Russian Federation, from all income. In this case, the tax is levied not only on official salaries, but also on any other source supported by documents. This could be rent for land, for a garage or a room in a communal apartment, as well as taxable income from the sale of any real estate. When submitting an annual declaration to the fiscal service, citizens are required to contribute all their income received in the territory of the state. It is from the total income that the percentage is calculated.

At the same time, a citizen has two options for returning his money lost to pay personal income tax:

• basic property, that is, aimed directly at the purchase of housing;
• reduction in mortgage interest costs (interest actually paid).

What is the difference between these two types?

The fact is that citizens who purchase housing without a mortgage can also apply for fiscal compensation. In this case, only the first type of deduction is provided, i.e., in the amount of expenses aimed directly at purchasing housing.

The right to receive a return is a document confirming ownership, a purchase and sale agreement. When taking out a mortgage, a tax deduction allows you to reduce the financial burden of interest and thus reduce the amount of your monthly payment.

The main condition for such a return is the execution of a targeted loan. That is, in a situation of a cash loan without indicating the main purpose, a citizen cannot count on a mortgage tax deduction.

Thus, a property deduction can be issued both for the total purchase amount and for the bank interest actually paid. The only difference in these cases will be the amount of the refunded amount.

Which option to choose depends on the amount of the mortgage, the applicant’s income and the date of ownership of the home.

Reimbursement of mortgage interest when buying an apartment: main nuances

Many people who are already burdened with a mortgage are interested in the question of the time frame for filing an application for partial interest reimbursement. The conditions of the Tax Code of the Russian Federation are quite loyal and do not oblige the borrower to immediately collect all documents when applying for a mortgage.

The client has at least three years to submit an application to the fiscal service for a mortgage deduction. The total calculation of the deduction is formed from the moment the mortgage agreement is signed.

The procedure for applying for a tax deduction contains a lot of nuances that you need to know before submitting your application.

Basic moments:

1. When choosing the main property deduction, the payment can be received several times, for several housing properties, until the maximum established limit is reached (this applies only to those citizens who purchased housing after 01/01/2014 and did not use the property deduction before 01/01/2014). When a client chooses to deduct interest, this service can only be used once.
2. Only a resident of the country can apply for fiscal compensation. At the same time, he must have an official income and pay taxes regularly.
3. To calculate the total deduction, data for all the past three years is taken into account if the client submits an application after this time after signing the contract. If the amount of personal income tax paid is less than the estimated deduction, it will be transferred to the borrower’s account on an annual basis until it reaches the maximum established limit.
4. In the case of a tax refund on mortgage interest, a limit is set at 390 thousand rubles or 13% of the maximum amount of 3 million rubles. This is the amount of interest on the loan. In addition to paying the principal (loan body), the borrower also pays interest monthly. So, fiscal compensation allows you to return an amount of 13% of the interest actually paid. This is the rule, i.e. the limit of 3 million rubles applies only to mortgage loans issued after the changes were made in 2014. There is no limit on repayment of mortgage loans purchased before 01/01/2014, i.e. 13% is returned from all interest actually paid. The right to use the interest deduction is given to the client only once. However, this option is only possible if during the entire billing period the borrower had official income taxed at a rate of 13%.
5. The deduction can only be made for housing purchased within the country.
6. The amount will not be refunded if the tax office finds that the purchase and sale transaction took place between close relatives.
7. The amount of the annual refund is limited by the taxes paid (cannot be more than the amount of taxes paid).
8. There is no limitation period for fiscal compensation, however, the calculation will be made on the date when the transaction was concluded and, accordingly, the current tariffs of that period are applied.
9. When applying for a property deduction for housing purchased with a mortgage before 2008, the value limit will be 1 million rubles. Registration of purchase and sale after 2008 limits the amount of the main deduction to 2 million rubles. Even if the apartment costs more, the deduction will be calculated based on the maximum amount. If the price of the property is less, then it is calculated from the amount specified in the contract.
10. When refinancing a loan with another bank, the borrower can also count on a partial refund of the funds paid. However, the agreement must be formalized as a target agreement. Otherwise, the taxpayer will be denied compensation.

For borrowers who signed a mortgage agreement after January 1, 2014, the deduction is limited to 3 million rubles.

Thus, when submitting an application and preliminary calculating the amount of compensation, it is important to take into account the date of the transaction.

The calculation scheme is quite simple. A citizen who has taken out a mortgage is exempt from income tax. However, such a refund can only be made for the interest actually paid.

The borrower can determine the repayment amount independently. To do this, two factors need to be taken into account:

• total amount of real estate;
• the total amount of tax paid.

The amount of the property is specified in the contract. At the same time, the law provides for the inclusion of finishing works in the total cost, if this is included in the contract. When purchasing housing in a new building, a total amount is often included in the mortgage agreement, which includes finishing work along with the purchase of materials. So in this case, the property deduction will be calculated from the total amount.

Given the different maximum rates for calculating the mortgage deduction, let's look at specific examples of what you can expect.

Example No. 1

You took out a mortgage worth 50 million rubles in the summer of 2013 (i.e., before the new rules came into force on January 1, 2014). For the entire period of using the loan, interest payments amounted to 6 million rubles. In this case, you can claim a tax refund in the amount of 1.040 million rubles (2,000,000*13% +6,000,000*13%).

If exactly this situation had occurred after January 1, 2014, then the deduction would have been 650 thousand rubles (2,000,000*13% +3,000,000*13%).

Example No. 2

Citizen N. took out a mortgage to build a house in the amount of 3.5 million rubles. According to the established limits, only 2 million rubles are deductible. Thus, the calculation will be made as follows:

2 million * 13% = 260 thousand rubles (this is the amount of compensation for the mortgage loan).

Who is entitled to compensation?

According to the Tax Code of the Russian Federation, the following are entitled to fiscal property compensation:

The right to compensation can be exercised at the local fiscal office or through the employer through whom income tax is paid.

Who is not entitled to such compensation?

1. Unemployed citizens of the country.
2. Pensioners who do not pay 13% tax from other sources of income.
3. Working people, but at the same time receiving unofficial salaries “in envelopes”.
4. People who carried out a purchase and sale transaction between relatives.
5. Entrepreneurs operating under a special simplified scheme.

As mentioned above, the Tax Code of the Russian Federation provides for several options for deductions, one of which is property. There are also social and professional ones. When applying for other types of deductions (for education, treatment), the only barrier will be the amount of tax paid.

Refund of personal income tax on mortgage interest: determine the amount

The exact amount of compensation will be determined by specialists after approval of the application and verification of all documents. For each citizen it will be different depending on:

• housing costs;
• dates of the transaction;
• amount of interest paid.

When compensating for interest on a mortgage, the specialist calculates 13% from the total amount of interest already paid and makes a refund to the bank account

Citizen N. took out a mortgage for a period of 20 years at 15% per annum, purchasing an apartment worth 1,900,000 rubles.

1.9 million * 15% = 285 thousand rubles (interest for the year)

285 thousand rubles * 13% = 37,050 rubles (this is the amount that will be returned in a year).

It is important to understand that when calculating the amount of compensation, experts take as a basis the total amount of taxes paid by the borrower. That is, in fact, if the amount of taxes was less than the deduction due, then this right will extend to subsequent years until the funds are fully used.

If a situation arises where it is necessary to return compensation for several years at once, the application procedure will be identical. If you first learned that you can get back part of the money spent on housing on credit, this does not mean that time is lost.

Here it is important to determine the fact of personal income tax deduction at the time of conclusion of the transaction. If you were officially employed and regularly paid income taxes, then you can write an application to the fiscal service for a refund for several years at once, but no more than for the previous 3 years

Where to contact?

To exercise the right to return a partial amount for the paid mortgage, you can choose one of three methods:

1. Visit the tax office in person at your place of registration.
2. Fill out the online form on the Russian Government Services Portal.
3. Submit an application through the multifunctional center.

You can find out the number and address of the fiscal service in your city through the public services portal. To do this, you need to enter your personal data: TIN and address. Keep in mind that you need to choose a branch not according to your actual place of residence, but according to your registration address.

The electronic application option is the most convenient and simplest. In order to use the service, you must register on the site and log into your personal account.

When registering, you must provide the taxpayer’s personal information (passport number and series, TIN, registration address, SNILS). The opportunity to submit an application together in the completed declaration form will be available only after the administration has verified the accuracy of the entered data.

The multifunctional center is not geographically tied to specific addresses and accepts applications from all citizens of the Russian Federation. To use the deduction service, you must contact the center with the appropriate package of documents and submit an application for a refund of mortgage funds.

What documents need to be collected?

To minimize the waiting time for a refund application and quickly process the service, we suggest that you familiarize yourself with the package of documents required for a tax deduction:

• personal documents of the taxpayer (passport and TIN);
• property purchase and sale agreement;
• document confirming ownership of real estate;
• declaration();
• mortgage payment receipts and certificate of current debt;
• certificate in form 2-NDFL (original);
• application for refund;
• loan payment schedule (as an appendix to the agreement);
• certificate from the bank with the account number for crediting.

As can be seen from the list, any adult citizen of the Russian Federation who has official employment and regularly pays taxes to the state can claim partial compensation for the funds spent on the purchase of housing.

What is important here is not even official work, but the monthly payment of income tax in the amount of 13%. Therefore, if a “working” person regularly gives part of his income to the state and submits a declaration, he can count on fiscal compensation.

If the apartment is shared by both spouses, the tax office must provide the original and a copy of the Marriage Certificate.

If a citizen claims a tax deduction for several years at once, but cannot provide payment documents for the loan, the tax office is allowed to accept a bank statement for payment.

The amount of fiscal compensation is determined by tax officials after checking documents and confirming personal income tax payment. Once the application is approved, the money will be transferred to the taxpayer's account. By law, this may take up to 90 working days.

In addition to the standard list of documents, tax officials may require additional papers. Let’s say that during the term of the loan agreement, the bank was declared bankrupt and restructured. Thus, the mortgage agreement becomes the property of another Lender, which means it is necessary to provide information about the assignment of the agreement to another bank.

The client can choose the method of returning money through a bank account, through a cash register or to a card.

Return procedure: step-by-step instructions

So, in order to return your legal 13% paid to the state treasury in the form of income tax, you need to follow these steps.

Table 1. Step-by-step instructions for refund

Step	Description
Step #1. Collection of documents required for compensation	At the end of the reporting period, you must collect a complete package of documents and contact the fiscal service at your place of residence. It is not necessary to come to the appointment in person for this. Today you can apply online.
Step #2. Filling out a declaration in form 3-NDFL.	In this document you must indicate: personal data of the taxpayer; monthly earnings; the cost of the mortgage for the period for which the application is written; the amount of monthly income tax (13% of total earnings). The declaration can be filled out on the official website of the National Assembly of the Russian Federation by registering and logging into your personal account.
Step #3. Submitting an application, documents and declaration to the fiscal authority.	When sending an application for social compensation by mail, the letter must include a list of all documents. It is also necessary to request written confirmation of receipt of the letter and package of all documents. The taxpayer must take into account that the declaration indicates the total income from which the income was paid.
Step #4. Verification of documents by the service and, if reviewed positively, tax refund to the current account.	Along with the documents, the applicant submits a certificate indicating the current bank account for depositing funds.

We return the property deduction through the employer

If the refund is made through the employer, the taxpayer's salary will be automatically increased by the amount of the deduction due until the money is fully calculated.

To select this option, you must perform the following steps:

1. Contact the local tax office and obtain a notice of permission to pay personal income tax on property acquisition.
2. Give the employer a statement from the Tax Service.

In order for the tax office to “approve” this option for filing a deduction, you must provide the following package of documents:

• Personal Information;
• application for fiscal compensation;
• contract of sale;
• loan agreement;
• certificate from the place of work, certified by the accounting department.

From the moment the application is submitted to the employer, the withholding of income tax is automatically stopped from the employee’s salary until the property deduction is fully calculated.

After the completion of compensation, personal income tax automatically begins to be calculated on wages. An application for a property deduction from the employer, as well as a notification of the existence of such a right from the tax office, must be submitted annually.

Many people still do not suspect that they have the right to claim personal income tax not only for the cost of purchased housing (hereinafter referred to as the housing deduction), but also for the amount of interest paid on a mortgage loan or targeted loan spent on the purchase of housing (hereinafter referred to as the interest deduction ) (Subclause 2, clause 1, article 220 of the Tax Code of the Russian Federation).
Of course, it is at least strange for our accountant readers to hear this. But probably even they are not aware of all the nuances associated with providing an interest deduction. Therefore, we decided to comprehensively cover this topic.

Interest deduction - no restrictions on amount

Unlike the housing deduction for personal income tax, the amount of which cannot exceed 2 million rubles, the interest deduction does not have an upper limit. It can be claimed for the entire amount of interest paid.
Let’s say the cost of the purchased apartment is 6 million rubles, and the amount of interest on a mortgage loan granted for 10 years is 3 million rubles. Thus, the total amount of property deduction will be 5 million rubles:
- 2 million rubles. - housing deduction;
- 3 million rubles. - interest deduction.
Just remember: you do not have the right to immediately claim a deduction for the entire amount of interest indicated in the payment schedule (that is, which you only have to pay, but have not yet paid). After all, interest is taken into account as part of the deduction as it is paid (Subclause 2, clause 1, Article 220 of the Tax Code of the Russian Federation).

For reference
You can get a property deduction for personal income tax during construction or acquisition on the territory of the Russian Federation:
- a residential building, apartment, room or share(s) in them;
- land plots provided for individual housing construction;
- land plots on which the purchased residential buildings are located, or shares (shares) in them.

By the way, the interest does not have to be declared simultaneously with the housing deduction. If you purchased an apartment with the help of a mortgage loan and have already taken advantage of the deduction for the costs of its purchase, but forgot or did not know about the interest deduction, or you did not have taxable income for some time, then nothing prevents you from taking advantage of the interest deduction later (Letter Ministry of Finance of Russia dated November 26, 2010 N 03-04-05/9-691). There is no deadline in this case (Letter of the Federal Tax Service of Russia dated June 23, 2010 N ShS-20-3/885). But keep in mind: both housing and interest deductions must be declared for the same real estate object.
If you used up your right to a deduction when purchasing one apartment, and after some time, with the help of a mortgage, you acquired, for example, a larger apartment, then you will no longer receive an interest deduction on it (Letter of the Ministry of Finance of Russia dated 06.08.2010 N 03- 04-05/7-436; Letter of the Federal Tax Service of Russia for Moscow dated 05/31/2010 N 20-14/4/057186@).

Not every percentage is worthy of deduction

As we have already mentioned, the deduction includes the amount of interest paid only on the targeted loan (credit) (Subclause 2, clause 1, Article 220 of the Tax Code of the Russian Federation). That is, the contract must indicate that the borrower undertakes to spend money specifically on the purchase of an apartment, as well as on the purchase of finishing materials and payment for repair work, if under the purchase and sale agreement the apartment is sold without finishing (Clause 1 of Article 814 of the Civil Code of the Russian Federation). In this case, it is not at all necessary that the loan (credit) be received from the bank. It can be taken from any Russian organization or from an individual entrepreneur.

Attention! You can use the property tax deduction only when purchasing one residential property.

However, if, for example, you were denied a mortgage and had to take out a consumer loan or a loan “for urgent needs” to buy an apartment, then you will not be able to claim a property deduction for the amount of interest paid on such loans (Letter of the Ministry of Finance of Russia dated March 25, 2011 N 03-04-05/7-187; clause 1 of the Letter of the Ministry of Finance of Russia dated 02/19/2009 N 03-04-05-01/67; Letter of the Federal Tax Service of Russia for Moscow dated 10/11/2010 N 20-14/3/106139 ).

Interest on refinancing loans is also included in the deduction

This refers to bank loans received to repay earlier targeted loans for the purchase of housing or land. In 2007 - 2008 refinancing has become a widespread phenomenon: in order to repay mortgage loans previously taken out at 15-20% per annum, people took out new loans at lower interest rates. From 01/01/2010, the Tax Code directly allows interest on refinancing loans to be taken into account as part of a property deduction (Subclause 2, clause 1, Article 220 of the Tax Code of the Russian Federation; subparagraph “b”, clause 4, Article 1, clause 2, Article 6 of the Federal Law dated 07/19/2009 N 202-FZ), that is, for both loans (both primary and received for refinancing), you can claim a deduction for interest.
By the way, even before amendments were made to the Tax Code of the Russian Federation, the tax service allowed interest on a new loan to be taken into account in the deduction amount, if it is clear from the agreement that this loan is intended to repay the initial loan received for the purchase of an apartment. That is, the new loan is also associated with the purchase of an apartment (Letter of the Federal Tax Service of Russia dated April 17, 2009 N 3-5-04/463@). This means that it is quite possible for a loan taken out to refinance the original loan to receive a deduction in the amount of interest paid not only in 2010, but also earlier.

When to claim interest deduction

Initially, the deduction can be declared in the declaration for the year in which:
(or) an act of acceptance and transfer of the apartment (room) is signed when acquiring rights to the apartment (room) in under construction house (Letters of the Ministry of Finance of Russia dated March 25, 2011 N 03-04-05/7-189, dated March 16, 2011 N 03-04-05/7-147; Letter of the Federal Tax Service of Russia for Moscow dated November 26, 2010 N 20-14 /4/124525@; Determination of the Supreme Court of the Russian Federation dated December 22, 2010 N 78-Вр10-40). Let’s say in 2008 you entered into an agreement to invest in the construction of an apartment building and took out a bank loan to pay for it. In 2010, the acceptance and transfer certificate of the apartment was signed, and the registration of ownership occurred in March 2011. In the declaration for 2010, you can include in the property deduction the entire amount of interest paid to the bank from 2008 to 2010 inclusive;
(or) a certificate of ownership has been received:
- for an apartment (room, share in them) in ready house on the basis of a purchase and sale agreement (Letters of the Ministry of Finance of Russia dated 02/08/2011 N 03-04-05/7-66, dated 09/30/2010 N 03-04-05/7-572);
- a residential building (share in it) during its construction or acquisition (including construction not completed) (Letter of the Ministry of Finance of Russia dated October 22, 2010 N 03-04-05/9-638; Letter of the Federal Tax Service of Russia for Moscow dated October 22. 2009 N 20-14/4/110715).
In subsequent years, you can claim the interest deduction for each year until you repay the loan and receive the full deduction.

How to determine the interest deduction if the loan amount exceeds the cost of the purchased apartment

It happens that people take out a targeted loan both to buy an apartment and to renovate it. Accordingly, only part of the loan is used to pay the cost of the apartment.
Interest on the loan, included in the amount of monthly payments, is calculated based on the total amount of debt. The question arises: how to isolate from the total amount of interest the interest aimed at repaying that part of the loan that was spent on the actual purchase of the apartment?
The Ministry of Finance and the Tax Service believe that for this it is necessary to correlate the total loan amount with the amount spent on the purchase of housing (Letter of the Ministry of Finance of Russia dated October 29, 2009 N 03-04-05-01/780; Letter of the Federal Tax Service of Russia dated September 21, 2009 N 3- 5-04/1445; Letter of the Federal Tax Service of Russia for Moscow dated April 30, 2010 N 20-14/4/046486@). Let us give an example of such a relationship.
Let's say in 2010 you took out a target loan in the amount of 3 million rubles. According to the agreement, 2 million rubles. are intended to pay the cost of the apartment, and the remaining money should go towards repairs. Thus, 66.7% of the loan amount was spent on purchasing housing. In 2010, a total of 120,000 rubles in interest was paid for using the loan. This means that the amount of interest deduction will be 80,040 rubles. (66.7% of RUB 120,000).

Interest deduction when buying a home by spouses

Both spouses have the right to deduct the amount of interest paid, regardless of which of them has the documents for payment of interest drawn up (Letter of the Ministry of Finance of Russia dated March 15, 2011 N 03-04-05/7-138; Letter of the Federal Tax Service of Russia dated May 20, 2009 N 3-5-04/608@). In this case, the interest deduction will be distributed between them as follows:
(if) the apartment is purchased in shared ownership- in proportion to the share of each spouse in property rights (Subclause 2, clause 1, Article 220 of the Tax Code of the Russian Federation);
(if) the apartment is purchased into joint ownership- in the same proportion in which the housing deduction was distributed between the spouses upon their written application (for example, 100% and 0%, 50% and 50%, etc.) (Letters of the Ministry of Finance of Russia dated March 16, 2011 N 03-04 -05/9-144, dated 09/01/2010 N 03-04-05/6-512). Moreover, if previously one of the spouses had already received a deduction for another apartment, then, according to the Ministry of Finance, the second spouse in relation to their joint apartment can only count by half deductions, both housing and interest (Letter of the Ministry of Finance of Russia dated January 27, 2011 N 03-04-05/7-36).

Attention! If the spouses have already submitted to the Federal Tax Service an application about the proportion in which the deduction should be distributed between them, then it will not be possible to cancel or adjust this application in order to change the order of distribution of the deduction (Letter of the Ministry of Finance of Russia dated 07/08/2010 N 03-04-05/9 -381; Letter of the Federal Tax Service of Russia dated October 15, 2009 N 3-5-04/1542).

But the tax authorities have a different point of view. They believe that a spouse who has previously received a deduction can simply claim a deduction of 0 rubles when purchasing another apartment as joint property. Thus, the second co-owner of this apartment, who has not previously received a property deduction, can be provided with it in full (Letters of the Federal Tax Service of Russia dated December 11, 2009 N 3-5-04/1838, dated October 26, 2009 N 3-5-04 /1595).

Advice
If you are just planning to buy an apartment, and your husband or wife has already claimed a deduction for another property, then it makes sense to register your joint apartment in the name of the spouse who has not yet used his right to a deduction. In this case, there will certainly be no problems with either housing or interest deductions (Letters of the Federal Tax Service of Russia for Moscow dated November 11, 2010 N 20-14/4/118132, dated October 18, 2010 N 20-14/4/108837 @).

Documents confirming the deduction

In their written explanations, the tax authorities assure that in order to receive an interest deduction, you need to provide them with the following documents (Letters of the Federal Tax Service of Russia for Moscow dated September 30, 2009 N 20-14/4/101532, dated August 17, 2009 N 20-14/4/ 084990, dated 04/03/2009 N 20-14/4/031788@):
- a copy of the loan (mortgage) agreement, which states that the loan was provided for the purchase of a specific apartment;
- a copy of the loan repayment schedule and interest payments on it;
- a certificate from the organization that issued the loan about the amount of interest paid for the corresponding tax period;
- documents on payment of interest.
However, we would advise you, just in case, to take to the inspection also copies of the “apartment” documents, in particular the certificate of ownership, the purchase and sale agreement, the act of acceptance and transfer of the apartment. As practice shows, without them the inspector may not accept your declaration.

A mortgage is a heavy burden. And a return of 13% of the amount of interest paid on the loan will help to somehow alleviate it. And claiming a percentage deduction is not at all difficult. For mere mortals, the most difficult thing is probably to fill out the declaration correctly. But we think that for our accountant readers this is not a problem.

The deduction is due to the person who executed the mortgage agreement. If this is housing that is purchased after marriage, then the spouse can receive a deduction, since this property is already joint. In the case of shared ownership, the amount that can be returned is distributed according to the size of each owner's share. When parents buy an apartment or house for minor children, then even if the ownership is registered in the latter’s hands, but the parents make payments, the latter can issue a refund for part of the interest from their income tax.

Foreigners who work in our country and pay tax on their income here can also claim a deduction.

In what case can you partially refund the interest paid on your mortgage?

In order to return the interest paid to the bank when receiving a mortgage loan, the following conditions must be met:

• the income must be official, since the state is ready to partially refund taxes only on those incomes that are indicated in the official tax return;
• The amount that can be refunded must not exceed the total amount of taxes you paid to the government. For example, you paid the bank 2 million rubles in interest and intend to return 13% of this amount - 260 thousand rubles. However, if during the specified period you paid the state only 200 thousand personal income tax rubles, then you can only claim a refund of this amount. To receive the remaining 60 thousand rubles, you will have to contact the tax office later, when you transfer the required corresponding amount of personal income tax to the state;
• the mortgage loan agreement must indicate the purpose of obtaining and specify the specific property for the purchase of which money is given;
• the borrower should not have tax debts to the state;
• the person receiving the deduction cannot be a pensioner without work or a woman on maternity leave or leave to care for a child (after returning to work, she will be able to return personal income tax on interest on the mortgage).

Another condition for receiving a deduction from mortgage interest is that this right can only be used once.

How can I get a deduction?

Refund of income tax on mortgage interest is carried out in the following ways:

• receive the refundable amount from the tax office at the end of the year in which the interest was transferred or at the beginning of the next one;
• throughout the year, deduct the amount of interest from the base for calculating personal income tax.

In the first case, at the time of submitting the income tax return for the previous year (or after his employer reports for the employee), the tax service is provided with all the papers confirming the conclusion of the mortgage loan agreement and the transfer of a certain amount of interest last year. After checking the information provided, the Federal Tax Service will transfer the entire amount due for refund to the account of the recipient of the deduction, the details of which must be left along with the rest of the documents.

The second option is for the employer to provide documents on mortgage interest paid. He will reduce the amount of wages accrued during the year by the amount of interest paid. Thus, the amount of personal income tax that will be withheld from wages will decrease, and the amount of earnings that the employee will receive in person or into a bank account during the year will increase.

What is the maximum deduction amount?

According to current legislation, the maximum size of the base for calculating the deduction for interest paid is 3 million rubles. That is, you can claim a refund of mortgage interest of no more than 390 thousand rubles - 13% of 3 million rubles. If the interest on the loan exceeds this amount, then it will not be possible to return the remaining amount.

If the interest on the loan is a smaller amount, and then another loan is taken out to purchase the same property, then only the amounts paid under the first mortgage agreement can be returned.

It is important to remember that the amount of the resulting refund should not be more than the tax due on the transfer from the entire salary. For example, if the amount of interest paid on a mortgage for a year is 100 thousand rubles, then the amount to be returned will be 13 thousand rubles. Moreover, if during the calculation period you paid the state only 10 thousand rubles in taxes, then the amount of interest to be returned will be similar. The remaining 3 thousand rubles of deduction will be carried over to the next year. Hence the simple conclusion: the lower the official salary of the recipient of the deduction, the longer it will take to return the mortgage interest.

How long can it take to receive a tax deduction for mortgage interest?

The number of years during which you can receive this deduction is not limited by law. That is, if the loan has already been paid in full along with interest, and payments on the return of mortgage interest have not yet been completed, then receiving the deduction can be continued. The 13 percent refund on mortgage interest will continue until the amount to be transferred to the applicant reaches RUB 390,000. However, you cannot repay more than the legal maximum amount for mortgage interest.

What is the procedure for obtaining a mortgage interest deduction?

The law allows you to apply for a refund of mortgage interest within a period not exceeding three years after the property is finally purchased.

To get a tax refund, you need to do the following:

1. prepare papers and their photocopies, which confirm the fact of concluding a transaction for the purchase of housing, a mortgage agreement with the bank, documents on the payment of interest on the mortgage;
2. submit all collected papers to the Federal Tax Service to obtain a positive decision on granting a deduction;
3. choose the method of making a tax refund - through the employer or the Federal Tax Service; in the latter case, provide your bank account details to the tax inspector.

The list of documents that are submitted to the inspection, in most cases, is as follows:

• passport of the person who applied for a refund of mortgage interest payments;
• 2-NDFL certificate issued at work (if he is employed somewhere and does not work independently (income in this case is reflected in the 3-NDFL declaration));
• declaration 3-NDFL - it is filled out by the applicant himself, it indicates all income and amounts subject to deduction, the amount of tax, the required refund based on the results of calculations;
• papers evidencing the right to deduction: agreements with the bank, with the seller, acts of acceptance and transfer of the purchased property, payment orders, receipts, other documents for the transfer of mortgage interest;
• account details if the money will be returned through the inspection.

Having a complete package of documents increases the chances of a quick resolution of the issue with the tax office.

And now you are enjoying your own cozy nest. It is possible to return part of the amount that was spent on the purchase. The cost of apartments only increases every year, and the return of part of the amount has never hurt anyone in terms of financial assistance, which can be spent on their own needs.

What current legal provisions should you follow in 2019?

In the legislative framework of the Russian Federation, there are several laws that regulate the procedure for receiving deductions, namely:

• Article 220 of the Tax Code of the Russian Federation, which describes the procedure for paying deductions for;
• Federal Law No. 212, which clearly regulates the conditions, procedure and deadlines for receiving deductions.

It is worth noting that recent changes in this issue allow you to receive deductions in an amount not exceeding 2 million rubles. These changes came into force in January 2014 and are valid in 2019. At the moment, there are no global changes in the issue of providing deductions.

It is important to note that the right to deduct mortgage lending is granted only once, and this is not possible in the future.

Who is and who is not eligible to receive a deduction?

You are entitled to receive a refund:

• those people for whom the return process is happening for the first time (it cannot be used more than once);
• that category of people who are officially employed at the time the refund is issued (if a person officially works in several jobs, he has the right to receive a refund for the total amount of income);
• foreign citizens who are officially employed in the Russian Federation and have lived in the country for more than 183 days.

During the process of processing a return, you can provide as income not only wages, but also profits received as a result. However, this must be documented.

Who is not eligible for a refund?

The legislation of the Russian Federation clearly states citizens who do not have the right to receive a deduction for mortgage lending:

• not officially working, retirement age;
• entrepreneurs who use special tax regimes;
• women on maternity leave.

Deduction amounts

The maximum deduction amount is 2 million rubles. For example, if a person purchased an apartment for this amount, he will be able to return 260,000 rubles (13%). If the tax amount is small due to the low level of wages, then it will be determined on an individual basis.

Registration procedure

It is important to note that documents to obtain a deduction can be submitted within 3 years after purchasing the apartment. This long period allows individuals to make a certain number of mortgage payments so that the deduction is fully met.

The general procedure and registration procedure are as follows:

1. The apartment owner collects all the necessary documents. In this case, additional documents may be required to confirm the completed purchase transaction.
2. Contact a Federal Tax Service employee to confirm your rights to receive deductions.
3. If the answer is positive, inform the Federal Tax Service employee how to receive the deduction and write a corresponding application according to the provided sample.
4. If this procedure takes place through the employer, the owner will be given documents to present at the place of work.
5. Provide the Federal Tax Service officer with the necessary package of documents and indicate the bank account for payments.

Documents for receiving a deduction

In order to receive a deduction for a mortgage loan, you must provide a package of documents, which includes:

• document on ownership (copy and original);
• original and copy of the apartment purchase agreement;
• original and copy of monthly receipts that confirm mortgage payments;
• a payment schedule certified by a notary (this document is issued by an employee of the bank where the mortgage was issued);
• original salary certificate of the apartment owner;
• original and copy of all pages of the passport.

Deduction through employer

To apply for a deduction through your employer, you must contact him with a corresponding application. The basic procedure is as follows:

1. Drawing up an application according to which the tax authority will present a document confirming the right to receive a deduction for mortgage lending (the application is written by hand in any form).
2. Notarize all necessary documents to receive funds.
3. The application, together with all documents, is submitted to the tax authority at the place of registration.
4. A month later, the tax office sends a notification according to which the owner of the apartment receives a deduction throughout the year using the tax exemption method.

Calculation examples

Example 1: Let’s say a person bought an apartment for 6 million rubles. The agreement was drawn up for mortgage lending. A person made a down payment of 2 million, the interest rate on the mortgage was 14%, the duration was 13 years.

It is important to note: the person works officially, and according to documents, he earned money within a year 1 million rubles.

Calculation process:

According to the law, the maximum deduction is 2 million. Respectively, 2 000 000 * 13% = 260 000 , this is exactly the amount the owner of the apartment is entitled to receive.

In this case, the amount of tax deduction: 260,000 + 390,000 = 650,000 rubles, where 390,000 is the amount of tax deduction on interest (3,000,000 * 13% = 390,000), 650,000 is the amount of return to the apartment owner as compensation for expenses for purchasing the apartment.

Of this amount, 260,000 rubles. the owner has the right to receive immediately, and the rest - 390,000 rubles. - as the loan is repaid.

Based on a salary of 1 million rubles annually, he will be able to receive the rest annually in the amount of no more than 130,000 rubles. (1,000,000 * 13%).

Respectively, 390,000 rubles will be returned in 3 years.

Example 2: the apartment was purchased for the amount of 4,400,000 rubles, of which 2,200,000 was paid through a mortgage loan issued for 10 years at 13%.

After doing the calculations, we get 3,100,000 * 13% = 403,000 rubles.

The owner receives the amount of 260,000 immediately, the rest as the mortgage loan is paid off.

As practice shows, any of the apartment owners will receive the rest of the deduction during the years for which the mortgage loan was issued.

The procedure and nuances for obtaining mortgage interest deductions are presented below.

The topic of obtaining a property deduction is extensive, but one of the most popular issues in it is the return of 13 percent on mortgage interest.

The reality is that buying an apartment on your own is often impossible; you have to resort to the help of banks, so it’s worth considering the specifics of this situation.

And in this article we will find out:

• what is a mortgage tax deduction;
• what amount and how many times can be returned;
• what documents will be required.

A property tax deduction can be obtained if you are lucky enough to purchase a house or apartment (finished or under construction), as well as a plot for a house. But this is not enough.

The main condition is that the new resident must pay personal income tax at a rate of 13% to the budget - it is from these taxes that the procedure for processing a refund is based. More details about how the personal income tax amount for a refund is formed are explained in.

Determining the amount to be refunded if you pay for the purchase with your own funds does not cause problems - 13% of the total cost of housing, but not more than 2,000,000 rubles. Maternity capital or other benefits are not taken into account if they paid for the apartment. After all, these funds are not subject to personal income tax. And since income tax is not withheld, it means that nothing can be returned.

The situation becomes more interesting when property is purchased using bank funds. In this case, in addition to interest on the cost of housing on general terms, it is possible to return interest on the overpayment on the loan.

It is immediately necessary to clarify that claiming a deduction for bank interest is possible only with a targeted loan, that is, the agreement with the bank must clearly indicate that the funds are intended for the purchase of housing.

You cannot issue an income tax refund on any consumer loan.

Repeated deductions from 2014

Oh, a lot of noise and chaos in the minds of citizens of the Russian Federation was caused by the law on the possibility of obtaining a repeated property deduction, which came into force in January 2014. Before this period, everything was much simpler: one apartment and one loan for it. It was in this combination that one could return income taxes, and once in a lifetime.

The fundamental difference between the two options is that a deduction from the cost of housing can be provided for several purchases (apartments) until the maximum amount for return has been accumulated. The deduction from mortgage interest is issued only once and only from one property. If the tax refund is less than the maximum amount, the remainder is forfeited.

You can watch this video tutorial or continue reading the article.

Since the owner has the right to both types of property deduction, registration always begins with the main one - a refund of 13% of the cost of housing. Only after this amount has been received in full can you apply for a “mortgage” deduction.

Maximum amount to be refunded

So, you purchased an apartment with a mortgage. Legally, the property is pledged to the bank, and you pay the loan amount and interest to the lender. The taxpayer can issue a refund on the interest that goes to the bank in excess of the principal debt.

Starting from January 1, 2014, a limit on the maximum amount for calculation was introduced - 3,000,000 rubles; you can receive up to 390 thousand rubles in your hands. In the regions of our huge country, housing prices vary greatly, so it is difficult to say whether the bar is set high.

But if you took out a mortgage before 2014 and want to return income tax on the interest paid, then the maximum refund amount is not limited: if you paid interest for 5 or 10 million rubles, then you have every right to return 13% of this amount fully.

Example. In Nizhny Novgorod, a two-room apartment can be purchased for 3 million rubles. If you take out a mortgage with a down payment of 600–700 thousand rubles. for 20 years, then the total amount of overpayment will be more than 4.5 million rubles. Thus, starting from 2014, you will not even be able to apply for a full deduction for all interest, and you will only be able to return 13% of RUB 3,000,000. = 390,000 rub.

But if this event happened before 2014, it would be possible to return the tax on all interest, regardless of the amount.

Another limitation on the maximum possible payment is related to the amount of income tax paid by the owner during a certain period. So, if we submit documents for a 13% refund for 2019, in fact we will receive no more than we paid personal income tax on wages for the specified year. For this reason, it is more profitable to apply for deductions for the cost of housing and for mortgage interest in different tax periods.

In order to make the most of the right of property deduction, you can order an individual consultation or fill out a 3-NDFL declaration. The prices are fabulous, the results are real.

Registration procedure

Tax refunds are made only after actual payment of interest to the bank.

Let's assume you are purchasing an apartment with a mortgage in 2018. You will be able to submit documents to deduct mortgage interest no earlier than 2019, and will only claim last year’s actual overpayment.

In 2020, you will resubmit the documents, applying for a deduction for interest paid in 2019. This will happen until the amount reaches the maximum RUR 3,000,000. In order not to contact the tax office every year, you can wait time and submit documents to deduct interest for several years at once - the deadlines are not limited by law.

Example. Let someone Ipotekov P.V. I bought an apartment on credit in 2016 and have already received a property deduction for it: 13% of the price paid. And since 2016, he has been paying interest on the mortgage of 50,000 rubles annually. In this case, Ipotekov can return 6,500 rubles each year. = 50,000 * 13%.

But you can do it differently. If today, for example, is 2020, then over the past 4 years (2016, 2017, 2018, 2019) interest on a mortgage loan of 200,000 rubles was paid. = 50,000 rub. * 4 years. And our Ipotekov can submit one 3-NDFL declaration for 2019, which will include all last year’s payments. In this case, he will receive a one-time return of 26,000 rubles. = 200,000 rub. * 13%.

So you have a choice: either receive annual mortgage interest payments, or accumulate a certain amount over several years, and only then return it through the tax office. The amounts paid on the mortgage do not expire, that is, there are no restrictions on the timing of their repayment.

Comment. There is another possibility of tax refund not at once, but with the help of. After contacting the tax office, you receive a notice of the right to a property deduction indicating the amount awarded. This document is submitted at the place of work, and from the moment the application is written, income tax is not deducted from the salary until the required amount has accumulated. The only difference in the documents is that there is no need to submit a 3-NDFL declaration.

To apply for a property deduction, you need to contact the tax office at your place of registration with a standard package of documents: an apartment purchase and sale agreement and an act of acceptance and transfer of property, receipts for payment for the purchase, a certificate of taxes paid.

A 13% refund on overpayments under a mortgage agreement can be a big help for new homeowners. These loans are taken out for large amounts and for a long period of time, and tax legislation offers financial support.

If you have any questions, feel free to write them below in the comments. We respond quickly and with pleasure. 🙂