One of the ways to ease the financial burden on citizens when buying an apartment or residential building is a property tax deduction.

Its essence lies in the fact that the state returns previously paid income taxes to home buyers. Moreover, in this case we mean only the tax in which income is taxed at a rate of 13 percent.

This means that you can receive a property deduction if all the conditions are met simultaneously:

• only our country;
• citizens who have income taxed at the specified rate (official wages, income from rental property and some other types of income);
• owners of purchased housing.

If the employer’s money or funds from any government programs are involved in the purchase of housing, then a property deduction for finishing the apartment, as well as for its purchase, will not be provided. Thus, families who purchased residential premises using maternity capital funds will not be able to receive a property deduction.

Tax deduction for apartment renovation

The purchased residential premises are not always handed over by the seller, which is called “turnkey”. Situations often arise when an unfinished house or apartment is sold, which requires significant costs for further finishing work or the purchase of construction and repair materials.

Tax legislation also provides for this option of helping home buyers: a tax deduction for repairs.

A deduction may be granted subject to certain conditions:

1. The owner of the property, having purchased it before the beginning of 2014, did not use his right to receive a deduction. This right is given to such owners only once in their lifetime.
2. The buyer of residential real estate purchased it after January 1, 2014 and did not use the deduction limit of 2 million rubles due to him.
3. The documents for the purchase of housing must indicate that the premises require repairs or finishing work.

Tax deduction for apartment renovation in a new building

Most often, the need for repair work arises when purchasing apartments in a new building. In practice, such apartments are put into operation in several types of readiness:

• without finishing;
• with partial finishing;
• with rough finish;
• "Full construction".

A tax deduction for renovations in a new building can also be obtained if you purchase an apartment on the secondary market. Let's show this using the example of a specific family.

Example 1. Citizen Pavlov I.I. in 2015 I bought an unfinished apartment in a newly built residential building. But due to health reasons, he was unable to make repairs to it, so he sold the house to the Zvonkov family for 1,200,000 rubles. When drawing up the purchase and sale agreement, the fact that there was no finishing work in the apartment was indicated. Attached to the contract was an acceptance certificate, which listed in great detail the work to be done by the new owners of the apartment (installing interior doors, hanging wallpaper, and some other things).

After the renovation was completed, the Zvonkovs turned to the tax service with a request to provide them with a property deduction for apartment renovations. They attached all the necessary documents and received the amount due to them.

But in general, tax legislation does not provide for a tax deduction for the renovation of an apartment in a secondary home. And the example of the Zvonkov family is more an exception than a rule.

Property deduction for apartment renovation without finishing

An unfinished apartment is, in fact, an ordinary concrete box with windows and entrance doors. The cost of such apartments, as a rule, is somewhat lower than the same housing with full finishing, so they are popular among buyers. For a new resident, it is very important to correctly draw up acceptance documents in order to later receive a deduction for apartment repairs.

Example 2. In 2016, Ivan and Maria Persikov purchased an apartment in a newly built building, hoping in the future to receive a tax deduction for finishing the apartment. The acceptance certificate listed all upcoming repair work (electrical wiring, ventilation, interior doors, etc.).

The Persikovs paid 1,500,000 rubles for the apartment. By the end of the year, the family had completely completed the renovation of their new home and collected all financial documents:

• sales receipts for purchased building materials;
• receipts from the craftsmen for the money they received for the repair work performed;
• statements of bank accounts for payment of services of construction and repair companies involved in apartment renovation.

The total cost of renovating the new apartment was 800,000 rubles. Thus, the purchase and renovation of the apartment cost the spouses 2,300,000 rubles (1,500,000 + 800,000 = 2,300,000). The deduction for repairs and decoration of the apartment is provided simultaneously with the deduction for the purchase. The deduction amount cannot exceed 2 million rubles.

Ivan’s salary certificate for 2016 indicates that he paid taxes of 125,000 rubles. This means that in 2017, having submitted a declaration in form 3-NDFL, Ivan Persikov will be able to receive a deduction for the renovation of an apartment in a new building and its purchase in the amount of 125,000 rubles instead of the declared 260,000 (2,000,000 * 0.13 = 260,000). For the remaining amount of 135,000 rubles (260,000 – 125,000 = 135,000), Ivan will be able to apply for a tax refund in 2018.

Since the apartment was purchased during marriage, it is the joint property of the spouses. Maria Persikova could also qualify for tax deductions for home renovations. But Ivan’s wife has already used her right to a property deduction when purchasing an apartment in 2012 and cannot participate in receiving a deduction for a new apartment. Until January 1, 2014, citizens had the opportunity to receive a property deduction for the purchase of residential real estate only once in their life and for one object.

Is it possible to get a deduction for renovating an expensive apartment?

In tax legislation, the deduction for finishing an apartment is not associated with its cost. But in practice, an expensive apartment requires more expensive repairs. And here it is important to decide for yourself whether it is worth collecting documents on the cost of repair materials and work performed.

Example 3. In 2015, the Ivansky couple bought an apartment in a new building with partial finishing for 5,000,000 rubles. The preliminary estimate for the upcoming repairs was 250,000 rubles.

Both spouses have not yet applied for a property deduction, so they can receive a tax deduction for apartment renovations by collecting the appropriate documents. The deduction for the purchase of an apartment from spouses will be 4,000,000 rubles (2,000,000 each).

That is, they will completely exhaust their rights to deductions and will not even use the entire cost of the apartment (5,000,000 – 4,000,000 = 1,000,000). The question arises: do the Ivansky spouses need a deduction for repairs? Should they spend their time collecting financial documents for finishing a new apartment? The answer is clear: no, it’s not worth it.

Is it possible to get a tax deduction for renovating a house bought from relatives?

Tax legislation (Articles 220 and 105) emphasizes that deductions for the purchase of housing are not provided if the transaction is made between interdependent individuals. These include:

• spouses;
• children and parents (adoptive parents, trustees);
• brothers and sisters.

Naturally, to the question of how to get a tax deduction for repairs in housing purchased from relatives, the answer will be negative.

Example 4. Sidorkin Ivan Sergeevich bought an unfinished house in the village from his son Sergei in 2015 for 800,000 rubles. There were two reasons: to help my son buy a large apartment in the city and the desire to live in a quiet place in nature during his future retirement. We prepared all the necessary documents:

• a purchase and sale agreement, in which it was indicated that the readiness of the house under construction is 90 percent and it requires repair work;
• acceptance certificate with a list of all deficiencies around the house.

Ivan Sergeevich never exercised the right to property deductions when purchasing residential premises, so he decided to collect all the documents for the purchase of repair and construction materials and payment for the work of craftsmen.

The purchase of laminate, tiles, wallpaper, plastic and consumables for them cost him a total of 450,000 rubles. Sidorkin paid another 250,000 rubles for the services of finishing craftsmen. Thus, 1,500,000 rubles (800,000 + 450,000 + 250,000) were spent on the purchase and renovation of the house.

It is for this amount that Sidorkin I.S. compiled a 3-NDFL declaration, attached all the required documents to it and submitted the package to the tax office. But the vigilant inspector drew attention to the same surnames of the seller and buyer of the house and rejected the request for a deduction in accordance with Article 220 of the Tax Code of Russia.

Documents for obtaining a deduction for repairs

To receive a property deduction for repairs in a newly purchased home, you must prepare the following documents:

1. Buyer's identity card (passport).
2. A purchase and sale agreement or other document certifying the transfer of ownership of housing.
3. The act of acceptance and transfer of the object with a detailed indication of all the deficiencies in it.
4. Salary certificate in form. If the applicant receives income in several places, then certificates must be provided from each source separately. This is not a mandatory legal requirement and depends entirely on the wishes of the taxpayer. But if the amount of tax withheld is not enough to fully refund the deduction, then it is better to provide all possible certificates.
5. Tax return form.

The collected documents are submitted for verification to the tax inspector during a personal visit, sent with an authorized representative (in this case, a notarized power of attorney is required) or delivered by mail.

The modern taxpayer has another opportunity: send a package of documents electronically through your Personal Account on the official website of the Federal Tax Service.

Dear users, in the comments to articles, answers will be published only on questions related to the text of the article itself. If you would like an answer to a question about your specific situation or need help calculating your taxes, please contact .

One of the expense items for a taxpayer purchasing residential real estate on the territory of the Russian Federation is the cost of repairing the purchased housing. Taking into account the provisions, along with, the taxpayer can count on a tax deduction for repairs and decoration of the apartment.

Conditions

The taxpayer has the opportunity to receive such compensation if the following mandatory requirements are met:
• the buyer is a tax resident of the Russian Federation, paying personal income tax at a rate of 13% (except for dividends);
• the housing is completely or partially missing finishing; this fact is documented.

The last point is very important. Often the documents do not contain information about the presence or absence of finishing of the apartment; it is necessary to ensure that this information is reflected in the contract, otherwise you will be denied a deduction; if there are partial finishing works, then you need to indicate in detail what kind of work was performed.

Example 1

In 2015 Morozova N.O. bought an apartment by assignment, the house was handed over in the same year, the contract did not indicate the presence or absence of finishing, Morozova N.O. signed the acceptance certificate and in the same 2015 hired a repair team for repair work, spending 600,000 rubles. for work and materials, in 2016 she sent documents to receive a deduction, but she was legally refused.

Example 2

Gazinsky N.F. in 2018, he purchased housing in a new house without finishing, costing 1,570,000 rubles, in addition to this Gazinsky N.F. spent 340,000 rubles on finishing work and materials. In 2019, he submitted documents to the Federal Tax Service to receive a deduction for the purchase of an apartment and for repair costs. As a result, the tax authorities approved his personal income tax refund on both counts in the amount of (1,570,000 + 340,000) * 13% = 248,300 rubles.

Important!

To apply for the required compensation, you must collect the required documents. Namely:

1. certificate 2-NDFL from the employer;
2. purchase agreement;
3. certificate of ownership or act of acceptance and transfer of housing;
4. passport (if you contact the inspectorate in person) and owner’s tax identification number (optional);
5. checks, receipts and other payment documents for expenses;
6. If you receive a deduction through the Federal Tax Service, you will need to fill out a 3-NDFL declaration and provide a 2-NDFL certificate.

All receipts, checks and other payment documents for repairs and decoration dated after the date of signing the transfer deed must be declared as part of the property deduction. Only such documents can be taken into account as your expenses for the purchased housing.
Moreover, you have the right to claim a tax deduction for expenses both on the purchase of real estate and on its finishing, regardless of whether such finishing was carried out before registration of ownership of the apartment or after (clause 17 of the Review of the Armed Forces of the Russian Federation dated October 21, 2015, brought to the attention of the tax authorities authorities by letter of the Federal Tax Service of the Russian Federation dated November 3, 2015 No. SA-4-7/19206@)

It is important to understand that a deduction for repair work and materials is not a separate type of deduction, but one of the forms of property deduction for an apartment, respectively:

• In total, the deduction for the purchase of an apartment, repairs and expenses for materials cannot exceed 2,000,000 rubles.

Tax deduction for finishing an apartment in a new building, list of materials and work

Below we have prepared several lists with a list of materials and works for which you can receive a property deduction and for which you cannot.

You can get a deduction

Works:

• painting, priming of surfaces;
• wallpapering;
• installation of interior doors;
• surface putty;
• laminate, parquet, linoleum flooring;
• laying ceramic tiles, porcelain stoneware;
• plastering surfaces.

Materials:

• paint, primer mixture;
• wallpaper;
• interior doors ()
• putty;
• laminate, parquet, linoleum;
• ceramic tiles, porcelain stoneware, mosaic;
• dry plaster gypsum mixture.

List of materials and works for which you can't get a deduction

• split-system();
• faucets, toilet, bathtub; water meters ( );
• a gas boiler;
• production and installation of loggia glazing ();
• production and installation of plastic windows ();
• warm floor ();
• insulation();
• installation of electrical wiring, telecommunications, computer network and cable television wiring; (OKVED code 43.21).

Tax deduction for home renovations

As for private houses, the same practice applies as for deductions for apartment renovations:

You can obtain the right to such a benefit only if you have the information specified in the contract for its purchase about the acquisition of an object without the necessary finishing.

But unlike apartments, when building a new house, according to Can also receive a deduction for connecting communications.

However, the interpretation of these provisions NK RF and raises questions among many taxpayers who are faced with frequent refusals from tax authorities when it comes to specific expenses related to finishing an apartment.

Let's look at some points in more detail.

Close attention should be paid to the contents of the real estate purchase and sale agreement.

The contract may indicate that the apartment is sold with full finishing, or with partial finishing (with a list of what has been done), or without finishing, or finishing may not be mentioned at all.

The Ministry of Finance and the Federal Tax Service believe that in order to receive the appropriate personal income tax deduction, the contract must indicate that the apartment is being sold without finishing.

Note! Expenses for apartment renovations cannot be claimed as a property tax deduction. The fact is that finishing of the apartment is provided pp. 2 p. 1 art. 220 Tax Code of the Russian Federation, but no repairs (Letter Federal Tax Service for Moscow dated April 27, 2009 N 20-14/4/041339@).

If an apartment is purchased and the contract states that it is transferred without finishing, then everything is simple - there should be no problems with the tax authorities.

If the contract states that the apartment is transferred with full finishing, or finishing is not mentioned at all, the tax authority will refuse additional costs for the purchase of finishing materials and costs for finishing the apartment.

As for partial finishing, you need to read the contract very carefully.

For example, it may contain an indication that an apartment is being sold with walls prepared for wallpapering. In this case, expenses, for example, for purchasing a primer to prepare walls for pasting, cannot be included in the total amount of the tax deduction. In relation to the costs of the remaining finishing, it is possible to obtain a deduction (in order to avoid problems with the tax authorities, it is advisable to clearly state in the contract the amount of work done on partial finishing).

Tax legislation does not specify the composition of expenses incurred, but only indicates the need for their documentary confirmation and the existence of a connection with the receipt of income for which a deduction is claimed. Confirmation can be 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 ( para. 24 pp. 2 p. 1 art. 220 Tax Code of the Russian Federation), which is confirmed by letters from the Ministry of Finance of Russia, the Federal Tax Service for Moscow dated 09.09.2011 N 20-14/4/087757 , dated 08/25/2011 N 20-12/4/082696@.

Quite often, taxpayers ask the question: what to do with an apartment purchased on the secondary market? We think no one will have any questions regarding an apartment purchased on the primary market.

The vast majority of explanations from regulatory authorities refer to para. 16 pp. 2 p. 1 art. 220 The Tax Code of the Russian Federation boils down to the fact that it will not be possible to receive a deduction for expenses related to the finishing of an apartment - deduction of expenses for the completion and finishing of an acquired house or finishing of an acquired apartment or room is possible if in the agreement on the basis of which such acquisition, indicates the acquisition of an unfinished residential building, apartment, room (rights to an apartment, room) without finishing or share(s) in them. The position of the Ministry of Finance is that the costs of finishing an apartment are not deductible, since the apartment was purchased on the secondary housing market, and not in a building under construction; In apartments purchased on the secondary housing market, finishing work has already been completed. Therefore, the term “finishing” cannot be applied to them in principle - see letters from the Russian Ministry of Finance dated 04/02/2010 N 03-04-05/10-161 , dated January 25, 2011 N 03-04-05/9-28.

Note. Expenses for renovation of an apartment made by the taxpayer during the period of his residence in it are not considered related to the acquisition of the apartment and do not reduce the income received from its sale (letters from the Ministry of Finance of Russia dated 10.02.2012 N 03-04-05/5-158 , dated 08/22/2011 N 03-04-05/5-582).

However, the explanations are not so clear. Ministry of Finance in Letter dated 04/20/2012 N 03-04-05/9-538 examined a similar situation. From the financiers' answer it follows that in order to receive a property deduction for the purchase of finishing materials, it does not matter whether the apartment was purchased on the primary or secondary market. The main condition is that the purchase and sale agreement must indicate that the apartment is transferred without finishing.

Most likely, taxpayers will be faced with a refusal by the tax authorities to provide a deduction for finishing an apartment purchased on the secondary market, on the basis para. 16 pp. 2 p. 1 art. 220 Tax Code of the Russian Federation. However, if the apartment was initially purchased on the primary market without finishing, the first buyer did not claim a deduction for finishing costs, and the subsequent purchase and sale agreement also states that the apartment is being sold without finishing - then, in the author’s opinion, there is every chance of successfully challenging tax authorities’ refusal to include expenses for finishing an apartment in the total deduction for the purchase of an apartment. Naturally, the taxpayer will have to document all his arguments.

A very common situation is when the costs of finishing an apartment are incurred some time after its acquisition. Citizens have questions about whether they can take into account finishing costs incurred after the date of state registration of ownership.

Sometimes tax authorities are of the opinion that only expenses for materials purchased before receiving a certificate of state registration of rights can be deducted. The purchase of materials after receiving a certificate of state registration is regarded as the repair of real estate, and the funds spent for these purposes cannot be taken as credit when receiving a property tax deduction. However, it appears that such an opinion is not based on law.

From the explanations of financiers and tax authorities it follows that the composition of finishing works in construction is defined in the All-Russian Classifier of Types of Economic Activities OK 029-2007 (OKVED) (NACE Rev. 1) *(2), in Group 45.4“Production of finishing works” which details the types of work related to finishing.

Taking into account the above, in order to determine the composition of expenses associated with the completion of finishing work by taxpayers and their acquisition of finishing materials included in the amount of the property tax deduction, one should be guided by the list of works classified as finishing work in accordance with the All-Russian Classifier of Types of Economic Activities OK 029-2007 (OKVED) (NACE Rev. 1), group 45.4.

In this case, all materials used in the production of the above finishing works can be classified as finishing materials.

Please note that in the period from 01.01.2008 to 01.01.2013, the All-Russian Classifier of Types of Economic Activities OK 029-2007 (NACE Rev. 1.1) is valid without cancellation OKVED OK 029-2001 *(3). In terms of finishing work, the classifiers do not differ in any way.

In earlier clarifications, the financial department did not refer to OKVED, but indicated that finishing work includes plastering, carpentry, carpentry, painting and glass work, installation of floor coverings and wall cladding (letters from the Ministry of Finance of Russia dated July 26, 2011 N 03-04-05/7-535 , dated 15.09.2010 N 03-04-05/9-545, Federal Tax Service for Moscow dated 09.21.2009 N 20-14/4/097773). In other words, the same works that were named in the group were listed 45.4 OKVED, among other and final works.

Unfortunately, despite a fairly large number of clarifications, there are no fewer questions.

So, let's try to figure it out.

In accordance with this document, group 45.4 includes the following types of work: 45.41"Production of plastering works"; 45.42"Production of carpentry and carpentry work"; 45.43"Installation of floor coverings and wall cladding"; 45.44"Production of painting and glass works"; 45.44.1"Glass production"; 45.44.2"Production of painting works"; 45.45"Production of other finishing and finishing works."

However, financiers in their letters “forget” to mention that the classifier has a section in which you can find a description of each job from this list.

Some information can be obtained from SNiP 3.04.01-87"Insulating and finishing coatings" *(6) , MDS 12-30.2006"Methodological recommendations on norms, rules and techniques for performing finishing work"; clause 4 Appendix 3 to MDK 2-04.2004 "Methodological manual for the maintenance and repair of housing stock" *(7).

Here financiers and tax specialists are unanimous. In their opinion, the costs of paying for the insurance policy are not subject to inclusion in the total amount of deduction - see letters from the Ministry of Finance of Russia dated 12/29/2009 N 03-04-05-01/1031 , dated March 27, 2003 N 04-04-06/52 , , dated 05/24/2011 N 03-04-05/7-379 , dated March 16, 2011 N 03-04-05/7-149 , dated 11/17/2010 N 03-04-05/7-676, Federal Tax Service for Moscow dated 03/21/2011 N 20-14/4/026176@ , dated 09/03/2010 N 20-14/4/092912.

The Ministry of Finance takes a similar position with regard to the costs of paying insurance premiums incurred in order to obtain a mortgage loan - see. Letter dated January 23, 2012 N 03-04-05/7-53.

According to regulatory authorities, these expenses cannot be included in the total amount of property deduction ( Letter Ministry of Finance of Russia dated March 27, 2003 N 04-04-06/52).

The Ministry of Finance has repeatedly indicated that these expenses cannot be included in the total amount of property deduction (letters dated March 27, 2003 N 04-04-06/52 , dated 12/21/2010 N 03-04-05/7-739, dated 02/16/2011 N 03-04-05/9-84), citing the fact that the costs of paying for the services of a realtor are not included in the list of expenses. By the way, in Letter dated 02/16/2011 N 03-04-05/9-84, financiers indicated that documented expenses for the provision of real estate services can be taken into account in expenses that reduce the tax base for personal income tax only when selling an apartment (and not when acquisition).

A similar conclusion is contained in letters from the Russian Ministry of Finance dated 04/28/2012 N 03-04-05/9-569, dated December 29, 2011 N 03-04-05/51123. In accordance with the specified documents, expenses for paying for the services of a realtor can be included in the total amount of tax deduction, but only when selling an apartment.

Regarding this situation there is Letter Ministry of Finance of Russia dated March 16, 2011 N 03-04-05/7-150. The position of financiers is that these expenses cannot be included in the total amount of property deduction.

Costs for the purchase of construction tools, such as chainsaws, electric planes, jigsaws, etc., according to the Ministry of Finance, cannot be included in expenses in order to obtain a property deduction ( Letter dated 10/14/2011 N 03-04-05/9-733).

The definition of reconstruction is given in Art. 1 Town Planning Code. In accordance with this article, reconstruction is a change in the parameters of a capital construction project, its parts (height, number of floors, area, volume), including superstructure, reconstruction, expansion of a capital construction project, as well as replacement and (or) restoration of load-bearing building structures capital construction project, with the exception of replacing individual elements of such structures with similar or other elements that improve the performance of such structures and (or) restoration of these elements.

According to the Ministry of Finance, reconstruction costs cannot be included in the total amount of property deduction ( Letter Ministry of Finance of Russia dated August 24, 2010 N 03-04-05/9-492).

Tax authorities hold a similar opinion ( Letter dated April 18, 2006 N 04-2-02/301@).

It’s worth saying right away that interest on the payment of a targeted loan is included in the total amount of property deduction without restrictions. In addition, it is now possible to include in the total tax deduction amount interest on loans aimed at repaying earlier targeted loans for the purchase of housing (in the case of refinancing a housing loan).

However, when obtaining a mortgage loan, a citizen has to bear a number of expenses, including servicing the mortgage loan at a credit institution. We will not touch upon the issue of the illegality of some such commissions - this is a topic for a separate discussion.

According to the regulatory authorities, these amounts cannot be included in the property deduction (letters from the Ministry of Finance of Russia dated 04/27/2010 N 03-04-05/9-226 , dated 04/28/2012 N 03-04-05/9-569).

Unlike a residential building, it is problematic to recognize the costs of gasification of an apartment in the total amount of property deduction. There is an example in judicial practice. The court of general jurisdiction supported the tax inspectorate and indicated that the costs of connecting to gas supply networks are included in the costs of new construction of a residential building or its share, but not an apartment. The case reached the Constitutional Court of the Russian Federation. IN Definition dated 02/16/2012 N 284-О-О, the Constitutional Court indicated that the establishment of certain features of collecting tax payments, including tax exemptions, is the prerogative of the legislator and does not fall within his competence. The taxpayer failed to prove his case.

Regarding the purchase of gas equipment, including a gas stove, there are letters from the Ministry of Finance of Russia dated July 26, 2011 N 03-04-05/7-535, dated 08/24/2010 N 03-04-05/9-493. These expenses cannot be included in the property deduction.

According to the Ministry of Finance, such expenses cannot be taken into account in the total amount of tax deduction - see. Letter dated 12/21/2010 N 03-04-05/7-739.

There are also clarifications on some other expenses (which, according to financiers, cannot be included in the total amount of property deduction):

To pay for the pre-emptive right to claim under an agreement on shared participation in the construction of real estate ( Letter Ministry of Finance of Russia dated July 26, 2011 N 03-04-05/7-535);

In the form of exchange rate differences when receiving a mortgage loan in foreign currency ( Letter Ministry of Finance of Russia dated February 11, 2011 N 03-04-05/7-79).

As for the costs of developing design estimates for finishing work, until 01/01/2010 they were taken into account as part of the property deduction only for the construction or acquisition of a residential building (share), and in relation to the finishing of purchased apartments (rooms) such a right was not provided. Since 2010, taxpayers have been able to apply a deduction for expenses not only for finishing materials and payment for construction work, but also for the development of design estimates for finishing work in an apartment or room purchased on the housing market ( para. 15 pp. 2 p. 1 art. 220 Tax Code of the Russian Federation).

The norm providing for the inclusion in expenses of the costs of developing design estimates for finishing work was introduced by Federal Law No. 202-FZ of July 19, 2009. This law came into force on the date of its official publication, with the exception of Art. 1 (clause 1 art. 6 Federal Law N 202-FZ), which has been in force since 01/01/2010 ( clause 2 art. 6 Federal Law N 202-FZ). Thus, you can receive a property deduction for personal income tax for the costs of developing design estimates for finishing work (subject to certain conditions) from January 1, 2010.

To summarize: in the case of an individual purchasing a residential apartment at the actual cost of its acquisition for the purpose of obtaining a property tax deduction provided for pp. 2 p. 1 art. 220 Tax Code of the Russian Federation, includes the costs paid by the taxpayer for the development of design estimates for finishing work in the purchased apartment.

Sometimes questions arise whether it is possible to include in the costs of purchasing (on the secondary market) an apartment the costs of developing design estimates for finishing work. A number of original consultations give a positive answer for taxpayers.

It should be said that the Tax Code of the Russian Federation does not indicate that in this case the apartment must be purchased on the primary or secondary market. However, in para. 16 pp. 2 p. 1 art. 220 The Tax Code of the Russian Federation states that a real estate property that has not been completed must be purchased. At the same time, in the specified paragraph, such a restriction (purchase of a real estate property that has not been completed by construction), with a literal interpretation of the Tax Code of the Russian Federation, applies only to the costs of completing construction and finishing of the acquired property. The costs of developing design estimates for finishing work are not, in the literal sense, costs of completion and finishing, as is clear from Art. 220 Tax Code of the Russian Federation. Consequently, formally providing a deduction for the amount of expenses for the development of design estimates for finishing work in an apartment purchased on the secondary market and fully completed construction is possible with a literal reading of the Tax Code of the Russian Federation.

There is a possibility that the developers of the changes simply did not take this point into account - when adjusting one paragraph, they did not make corresponding changes to another. Time will tell how the practice of providing deductions in this case will develop.

Most likely, the tax authorities in this case will refuse to provide a tax deduction.

At the same time, it is possible to provide a deduction in the amount of expenses for the development of design estimates for finishing work in an apartment purchased on the secondary market. However, most likely, the tax authorities will provide a deduction in the specified amount subject to several conditions:

The apartment was purchased from the developer by the first buyer without finishing, which is noted in the purchase and sale agreement;

The first buyer did not furnish the apartment and did not claim a deduction in the appropriate amounts;

The subsequent purchase and sale agreement for an apartment on the secondary market also contains an indication that the apartment is being sold without finishing.

In some cases, finishing work is carried out using targeted loans. In this case, the tax authority considers it possible to include these costs in expenses for which a tax deduction is provided ( Letter Federal Tax Service of Russia dated September 23, 2008 N 3-5-04/533@). Please note that tax authorities find it possible to include in the total amount of property deduction expenses not only for the purchase of building materials, but also for payment for finishing work carried out using a targeted loan (provided that the loan is targeted and is aimed at purchasing finishing materials and payment for work related to finishing the apartment). Thus, payment for the services of relevant specialists, for example, for wallpapering walls, can also be included in expenses for which a tax deduction is provided.

The Ministry of Finance adheres to a similar position - see. Letter dated March 25, 2011 N 03-04-05/9-190.

However, if, for example, the purposes of the loan are indicated as “personal consumption purposes,” then expenses cannot be included in the deduction ( Letter Ministry of Finance of Russia dated July 26, 2011 N 03-04-05/7-535).

Please note that before amendments are made to pp. 2 p. 1 art. 220 Tax Code of the Russian Federation, the amount of property deduction could be increased by interest on targeted loans for the purchase (construction) of housing received only from organizations. Now deductions are also possible for interest on loans from individual entrepreneurs.

What expenses can be included in the amount of property deduction for personal income tax?

Specialists from the Federal Tax Service of Russia explained what expenses can be included in the amount of property deduction for personal income tax (Letter No. ED-3-3/464@ dated 02/15/2012).

So, we are talking about the actual costs of purchasing a home. In particular, it is possible to take into account the costs of purchasing finishing materials and work associated with finishing, provided that the purchase and sale agreement indicates that the apartment was purchased without finishing.

At the same time, the Tax Code of the Russian Federation does not contain such concepts as “finishing work” and “finishing materials”. Therefore, it is recommended to be guided by OKVED, in group 45.4 of which work related to finishing is prescribed: plastering, carpentry, carpentry, painting and glass work, installation of floor coverings and wall cladding. Finishing materials include materials that are used in these works.

The property deduction for personal income tax can include expenses for finishing an apartment and purchasing finishing materials.

The taxpayer has the right to receive a property deduction for personal income tax in the amount of expenses actually incurred, in particular, for new construction or the acquisition of an apartment, room or share(s) in them in Russia.

Actual expenses include the costs of purchasing finishing materials and work related to finishing an apartment or room.

You can deduct the costs of finishing a purchased apartment if the contract on the basis of which it was purchased specifies the purchase of an apartment without finishing.

It follows from the appeal that the taxpayer bought an apartment under an agreement for participation in shared construction of a house. At the same time, the contract states that the apartment has been partially finished and lists the work performed by the developer.

Thus, the taxpayer has the right to include in the property deduction expenses associated with finishing work and the purchase of finishing materials. In this case, the latter can include all materials used in the production of finishing work.

Expenses for finishing an apartment can be included in the property tax deduction

The Department informs taxpayers about the procedure for including expenses for finishing an apartment in the property tax deduction.

In accordance with subparagraph 2 of paragraph 1 of Article 220 of the Code, when determining the size of the tax base for personal income tax, the taxpayer has the right to receive a property tax deduction in the amount of expenses actually incurred by him, but not more than 2,000,000 rubles, in particular, for the purchase of territory of the Russian Federation of apartments or shares in them.

According to the provisions of paragraph 12 of subparagraph 2 of paragraph 1 of Article 220 of the Code, the actual costs of purchasing an apartment, room or share(s) in them may include:

• expenses for the acquisition of an apartment, room or share(s) in them or rights to an apartment, room in a house under construction;
• expenses for the purchase of finishing materials;
• expenses for work associated with finishing an apartment, room or share(s) in them, as well as expenses for developing design estimates for finishing work.

Acceptance for deduction of expenses for finishing the acquired apartment is possible if the agreement on the basis of which such acquisition was made specifies the acquisition of an unfinished apartment (rights to the apartment) without finishing or share(s) in it.

At the same time, the provisions of Article 220 of the Code do not condition the provision of a property tax deduction regarding the costs of finishing the purchased apartment by making such expenses exclusively before receiving a certificate of ownership of the real estate property.
At the same time, by declaring a property tax deduction, the taxpayer actually exercises his right to it. The Code does not provide for a change in the procedure for using a property tax deduction previously provided to a taxpayer.

Thus, the taxpayer has the right to claim a one-time property deduction for expenses incurred both for the acquisition of the property and for its finishing, regardless of whether such finishing was carried out before the issuance of a certificate of state registration of ownership of the apartment or after the issuance of this certificate.

In addition, if, when receiving a property tax deduction, expenses for finishing the apartment were not included in it, then in subsequent tax periods it is not possible to obtain a property tax deduction for these expenses.

The clarifications were prepared on the basis of the letter of the Federal Tax Service of Russia dated April 30, 2013 No. ED-4-3/7970@.

Mortgage interest costs can be fully included in the property deduction

The Russian Tax Portal often receives questions regarding the procedure for obtaining a property tax deduction in connection with the purchase of housing.

Dear visitors, it is necessary to remind you that the property deduction regarding the cost of paying interest on targeted loans (loans) received for the purchase of housing is not limited to any limit.

If a mortgage loan is actually used to purchase an apartment for which a tax deduction was provided for the purchase costs, the taxpayer also has the right to receive a property deduction for the cost of repaying interest on this mortgage loan.

Many of our clients find our resource, puzzled by the question of where they can buy receipts for gasoline or building materials. The CHECKITUT website will come to your rescue in any of these cases!

When can you safely contact our company:

• loss of documents recording expenses made;
• damage to receipts;
• inconsistency of receipts with the amounts spent;
• purchasing building materials from private individuals without receiving reporting documentation;
• the need to reconcile debits with credits when there is a discrepancy in the company’s cash register;
• reduction of the tax base.

If you require a copy of the check in the expense report, we will prepare it, regardless of what motivated you to contact our company.

Where can I get receipts for building materials in Moscow?

Repair and construction are always big costs. When it comes to firms and companies, any expenses must be confirmed by sales receipts, invoices, and receipts. In cases where this reporting is needed, do not rush to present counterfeit documents made on a regular printer: a seal printed in this way is easy to recognize, which means that you will quickly be caught in a forgery.

If you are looking for where to buy receipts for building materials in Moscow, contact us: we will prepare for you real papers on real forms and with valid stamps of stores and bases selling building materials.

From us you can buy receipts for building materials purchased in any store. All that is required of you is to transfer to us in any way convenient for you the data that should be reflected in the reporting documents:

• name and address of the store;
• date of purchase;
• list of goods, grade, dimensions, volume, weight;
• prices;
• additional services included in the check (sawing, delivery, unloading, assembly, etc.).

List of building materials for tax deduction

Many of our customers need receipts for building materials for the tax authorities, so they worry whether the document we provide will be valid in this case. We hasten to assure all doubters: the checks we prepare will be real, with a real seal, that is, valid in any conditions.

By requesting sales receipts for building materials from us, you can buy them for any purchases you choose. Just send us a list of what needs to be included in the checks for presentation to the tax office.

How to make a Leroy Merlin check in Moscow?

By preparing a cash receipt for building materials for you, we can issue them to any store, warehouse or base you specify, including the most famous and largest suppliers of building materials.

So, for example, you can buy Leroy Merlin checks from us: we will prepare you reports on company letterhead indicating the original details of the company, and, if necessary, provide confirmation of the purchase. At the same time, you do not need to contact the store itself and agree on the provision of such reports: we will prepare all the papers ourselves, certifying them with an ink stamp.

Tax deductions exist to alleviate civil tax burdens and various living expenses. The list of compensation from the state also includes partial coverage of the costs of repairs in a newly purchased apartment located inside a recently erected apartment building. In the process of obtaining funds required by law, a large number of nuances and difficulties may arise that are not easy for a person who does not have knowledge in the accounting and legal fields to recognize on their own. In this article, we will reveal how to make a tax deduction for the renovation of an apartment in a new building, in what situations this opportunity is available to a citizen, and how to correctly complete the documentary component of the process.

Unfortunately, there is no separate column for issuing money for repair costs; it is part of the so-called property deduction, which is issued to citizens of the country when purchasing housing, although it does not have to be represented by an apartment. It could also be:

• country house or cottage;
• townhouse;
• room;
• part of the housing.

The restrictions on this type of state compensation are as follows:

• the maximum deductible amount is 13% of two million rubles if a targeted loan from a credit institution was not used;
• if the purchase was made using an official loan, 13% of three million Russian rubles is due for refund.

Not every citizen has the opportunity to use the right to receive a deduction. Here is a list of characteristics of an eligible refund applicant.

Table 1. Applicant for property deduction

Characteristic	Description
Official employment	A citizen of the Russian Federation must be officially employed and receive wages at the place of work, not in an “envelope”, but “in white”. Those who hide income from the tax service cannot receive funds that they themselves did not previously give to the state. The fact is that the deduction actually represents a refund of the income tax of an individual previously paid to the state treasury. If the tax was not received, and accordingly the tax was not calculated from it, there is nothing to return to the citizen.
Payment of taxes	In addition to paying income tax, a citizen must make payments on income tax on all financial inflows he has. For example, if you are a woman who went on maternity leave, you are temporarily not entitled to receive compensation from the state, since you are simply receiving a benefit that is not subject to taxation.
Buying a home	Only the person who paid for its purchase and owns it can receive funds for the purchased housing and fully or partially pay for the repairs made to it.

Note! Receiving funds from the deduction is possible only once, that is, having compensated two million purchase costs once, you cannot use this right a second time. However, if the full amount due to you was not used during the first purchase, the balance can be transferred to a subsequent purchase of residential real estate.

Moreover, if the housing was purchased before the end of 2013 and the right to the deduction has already been claimed, you are not entitled to carry over the balance.

The tax base used to calculate the amount of compensation due to the taxpayer is the amount of money actually spent on the purchase, the reality of the transfer of which must initially be confirmed by relevant documents.

Conditions for granting deductions

A partial refund paid to the state budget by the taxpayer is due only when purchasing real estate in which the owner intends to live. In this case, the following condition must be met: it is necessary to indicate in the concluded contract for the purchase of housing that the transfer of funds for it has been completed, and to indicate the purchase amount.

The calculation of the deduction is made on the basis of the financial base - the cost of housing and other costs incurred; in the case considered in this article, their role is the repair of a new building. If you decide to enter into an agreement with the seller and reduce the value of the purchased property in the documents, then you will receive a smaller deduction.

Not only finished housing is taken into account, but also self-built housing.

The list of costs available for compensation includes the following items:

• the amount paid for the purchased housing;
• expenses incurred for repairs, both capital and cosmetic;
• costs for the purchase of building materials and the work of the construction team when building a house or repairmen when carrying out the relevant type of work;
• under construction is also on the list;
• a targeted loan taken from a bank, that is, which will be used to purchase an apartment.

All of the above items are added up, subsequently making up the amount of the property tax deduction, which is the financial basis for calculating its amount.

Let's give an example. You and your family have long dreamed of buying a country house in a cottage village, but you did not have enough funds. Nevertheless, we decided to purchase a house with the help of a targeted loan.

At the beginning, you bought a plot of land in a country village for 700,000 rubles; on it stood an unfinished building worth one and a half million rubles. At the same time, you received a loan for one million from a banking organization and then you spent half a million to bring the building unfinished by the previous owners to completion. Let's calculate the amount of the tax refund due. To do this, we need to add up all the values ​​we have, that is, 700,000 + 1,500,000 + 1,000,000 + 500,000 = 3,700,000 rubles. From this amount, you and your spouse can receive two deductions, one of which will amount to the maximum amount allowed when using a loan of 3 million rubles, and the second - 700 thousand, while the balance due to him will remain. In the first case, 13% of 3 million is due, that is, 390 thousand; in the second, 13% of 700 thousand, that is, 91 thousand.

If the amount of the mortgage loan was not one, but one and a half million, then the total cost would be more than four million - the maximum possible amount to cover, so you and your spouse would have to be content with only 13% of two million each, that is, 260 thousand.

Refunds for premises not provided for accommodation are not provided for by law. The list of these names includes:

• country houses;
• parking spaces;
• garages and other options.

Types of residential apartments that qualify for cost compensation

Let's consider in what condition you can purchase an apartment in order to qualify for further partial compensation of costs. Depending on the status of the purchased property, the amount due for refund will change.

Option 1. Apartment in a new building "rough". Simply put, a concrete box, housing without finishing, the only thing it has are windows, radiators and communications. In this situation, the list of costs that the state is obliged to compensate includes the amount spent on repair work.

"Rough" renovation of the apartment

To do this, it is important to follow the following few rules:

• indicate in the contract that the purchased premises have not been previously finished;
• it is necessary to submit to the tax service an act confirming the transfer of the premises;
• compiling a list of expenses incurred when purchasing construction materials is also mandatory, in addition, each item needs to be supported by evidence;
• when purchasing an apartment that will be in shared ownership, a deduction for repairs in full can be provided to one of the owners, and an agreement must be reached with the remaining owners;
• Separately for housing, each owner of a share in an apartment can receive a deduction.

Option 2. The apartment is only partially finished. The issue of returning funds for compensation for finishing work in an apartment that was purchased under a contract and partially finished according to it is quite complex, since in this case it is necessary that in this case the documents attached to it from the developer contain a complete list of the finishing work performed and their cost and the cost of materials used.

If later the buyer performs his own finishing on top of the finished finishing or instead of it, the primary one will not be accepted by tax inspectorate specialists as expenses subject to compensation.

Consider the following aspects in this situation:

• it is important that previously only repair and finishing activities were carried out;
• money spent on the purchase of plumbing fixtures or furniture cannot be included in the list of expenses;
• in the act of work performed, an item is indicated that is evidence of the work performed inside the premises and the work that still needs to be carried out.

Let's give an example. The contract drawn up when you purchased an apartment states that it is rented directly with walls prepared for the application of paper wallpaper, as well as floors ready for laying flooring. In this situation, only the costs of purchasing flooring, wallpaper, as well as the work of gluing and laying them are subject to compensation. But payment for work and materials spent on preparing the required surfaces is impossible, since a list of costs is not available.

Option 3. Secondary housing. When buying an apartment on the secondary market, renovations are most often not done, since such housing is sold fresh, with cosmetic defects in the furnishings corrected. However, from time to time new owners receive outdated decoration or simply don’t like the existing one, so they decide to update the decor. You cannot get a refund for the old one, since you did not actually pay for its creation.

If you purchased a “resale” property in a new building, with repairs that were not fully completed, its completion must be reflected in the contract, in the form of an indication that the housing was originally purchased as an unfinished construction project.

For what finishing work can you get a tax refund?

Finishing works, the costs of which are subject to compensation from the state, include items from the list of information provided by OKVED.

1. Costs for the purchase of materials required for the construction and finishing process, supported by documents by submitting payment papers to the tax service. This list item includes almost any building materials.
2. Construction work, that is:
   1. calculation of estimates;
   2. conducting communications and engineering networks;
   3. construction of extensions to the main part of the housing, if we are talking about a house;
   4. wall plastering and finishing;
   5. leveling and laying floors;
   6. other finishing and finishing works.

Note! All official documents submitted to the inspection must contain specific information confirming that the work being carried out is of a finishing nature.

As for the concept of “repair”, a refund for it is applicable only to secondary housing that was finished at the time of purchase. If incorrect wording is used, the tax service has every right to refuse a refund.

What documents must be provided to receive a deduction for apartment renovations?

Before contacting the tax service to receive deduction funds, it is necessary to prepare and correctly execute a package of documents, namely:

• tax return in form;
• a certificate of income received by the citizen and tax deductions made to the treasury of the country in the form, which can be obtained at the main place of work;
• a copy of the document confirming the completed transaction for the acquisition of housing requiring repairs or finishing;
• documents confirming the owner’s right to own the property;
• all payment documents reflecting the costs incurred for repairs;
• application for the exercise of the right to receive a deduction;
• a copy of the passport of a citizen of the Russian Federation;
• tax payer identification number;
• birth certificate of shareholders who have not reached the age of majority.

Video - Complete package for tax deductions. Repair costs

Let's sum it up

As you can see, it is impossible to receive funds for home repairs separately; it is included in the property deduction, the maximum amount of which is up to two million rubles for housing purchased without using a targeted loan and three million to cover the interest on the loan. The amount a citizen receives as a result is quite significant, so every conscious taxpayer should take advantage of the opportunity to return it.