What tax on the sale of the apartment will you have to pay and maybe you don’t have to pay tax? And how to report to the tax office. These questions are asked by almost all real estate sellers. Let’s find out the details.
Outline of the article
- What tax on the sale of an apartment is paid in 2021?
- What is the taxable amount when selling an apartment?
- When residential sales tax is not required to be paid
- When is residential sales tax payable?
- Taxes on sale of shares (family)
- What tax on the sale of the apartment?
What tax on the sale of an apartment is paid in 2021?
Warning ! If you don’t have to pay income tax on the sale of a property, you don’t need to file a tax return. If the tax liability occurs — instructions for completing your tax return
To read in addition: Bathroom: what distance should be respected between the socket and the sink?
If you, the seller of an apartment, apartment building or salon — an individual, an ordinary person, not an investor or settlor of a legal entity — you must pay tax on the income (NDFL). The NDFL is a personal income tax.
NDFL is paid at a rate of 13% of income received if the taxable base is less than RUB 5,000,000 and 15% on income above RUB 5,000,000 (from income received during the tax period since 2021 g.).
The fiscal period for this tax is the calendar year. The profit report needs it once a year, within four months of the end of the tax period.
For example, a 2020 tax return must be filed with the tax office by April 30, 2021.
If you have sold a property, that is, you have income, you must report this to the tax authorities. After all, Rosreestra has recorded a change in entitlement from you to another person. That is, the state has received information about your transaction and you have signed a Good Transition Registration Statement by hand or through your agent representative.
But, at that, neither of you other than you and your buyer knows if you received the money as part of the transaction or if you have a deferred payment in the contract until the ‘next year.
Your buyer can contact the Internal Revenue Service to get a tax deduction and be sure to provide documentation proving purchase costs:
- Receipt from the seller upon receipt of the money to sell
- Payment order to the bank regarding the transfer of money to your account
That is, one way or another, the tax office will get reliable information about your income receipt.
What is the taxable amount when selling an apartment?
Who should pay taxes? Each owner who has sold the property in whole or in part. That is, all those that appear in the sales contract on the seller’s side. If there are multiple vendors, they each report independently to the IRS.
We will now know how much you have to pay 13%? Of course, with the amount of income!
RF tax code property tax deduction that allows you to reduce the tax base (the amount from which tax is withheld) or avoid paying tax altogether.
When residential sales tax is not required to be paid
What tax on the sale of an apartment if you bought it, received it as a gift or inheritance, privatized or received it by rental contract before January 1, 2016:
- And sold after three years of ownership , without tax
Code fiscal russe :
17.1) Income, received by individuals who are tax residents of the Russian Federation during the relevant tax period: from the sale of real estate, as well as shares of such property, taking into account the characteristics set out in Article 217.1 of this Code; from the sale of other property owned by the taxpayer for three years or more.
- If you bought more expensive and sold at least 70% of the cadastral value of the apartment calculated on January 1 in which the sale took place, no tax. need of
- If you sold exactly the same amount as you bought and this represents at least 70% of the cadastral value of the apartment calculated on January 1 in which the sale took place, no tax has to be paid.
Sale of a unique house, taxes
What tax on the sale of an apartment if you bought it, received it as a gift or as an inheritance after January 1, 2016:
Federal Law No. 382-FZ of 29.11.2014 (applicable to facilities real estate acquired after January 1, 2016)
The period in which real estate was found in the property of the taxpayer has changed, during which the proceeds of its sale are exempt from tax. If it was previously necessary to own an object for more than three years, then the release of income is usually carried out if the property has been owned for more than 5 years. But! For single dwelling, the minimum deadline is effective from January 1, 2020 ownership is 3 years. The condition of this law is that there is no other living space or participation in the ownership of a house.
The advantage also applies if a Russian has sold one property and bought another. This must be in accordance with the condition that new homes have been purchased within 90 days of registration of the change of ownership with the buyer
At the same time, for privatization, inheritance and endowment facilities from close relatives, as well as by dependent life contract, the rules remained the same: the proceeds from the sale of such assets are exempt from tax if they belong to the taxpayer for more than three years;
New rules have been established to determine the amount of taxable income in the event of the sale of a real estate object at a price significantly different from the market (less).B if the taxpayer’s income from the sale of the property is lower than the cadastre the value of this property on January 1 of the year, which is recorded by the state of the change in ownership of the property sold, multiplied by the downward factor of 0.7, for tax purposes, the taxpayer’s income from the sale of the property is equal to the cadastral value of this object multiplied by a rate of decline of 0.7.
When is residential sales tax payable?
- If you sell an apartment that you received free of charge before 01.01.2016 (gift, privatization) and that you have owned it for less than 3 years. To calculate the amount of tax, use the following formula: revenue from sale — 1000.0 * 13% . That is, if your income is equal to or less than 1,000,000 rubles, the taxable base 0 and no tax is
- If you sold an apartment you own less than 3 years more expensive than the one you bought. To calculate the amount of tax, use the following formula: sales revenue less purchase fees* 13%
Taxes on sale of shares (family)
Anyone who sells children’s shares in the property can apply a tax deduction with the amount paid when the parents buy an apartment. Of course, in proportion to this share. (the changes come into effect on 29.10.2019). That is to say that the tax base decreases on expenses. (if you have proof documents, receipt of money from the seller, bank documents regarding the transfer of funds to the seller). What is the tax receipt read the article: the tax receipt?
Additionally, taxes paid for previous tax periods beginning in 2017 can be refunded ! ! !
This rule applies to the application of regional parent capital to home purchases.
WARNING ! When allocating shares to children from parental property, it is necessary to confirm that the state subsidy (maternal capital) is applied to payment for housing (CRF or other certificate of authority, issuance of ‘a certificate).
Official Clarification Taxation for Allocation of Shares to Family Members from Sole Assets in Ministry of Finance LETTER dated March 15, 2019. No. 03-04-05/17028.
Deadline for payment of after-sales tax
You must pay tax on the sale of the apartment until July 15 , the year following the year of income.
What tax on the sale of the apartment?
Example of calculation (question from the reader)
Good evening, Olga Dmitrievna! Deduction for the sale of a room in a shared apartment. 13% of the sale of parts or the cadastre the cost of the whole apartment? Thanks.
Property tax deduction in real estate sales
The sale applies a standard tax deduction of 1,000,000 rubles, which means that the tax base can be reduced by this amount. For example: a room costs 1,500,000,000,000 = 500,000, i.e. 500,000*13% = 65,000, if the price is less than 1,000,000 — tax number. If you have owned a room for more than 5 years in a retributive transaction (sale) — tax number. If you own a room for more than 3 years without transaction fees (gift, inheritance), no tax. 08:02 If you have the only house, even under a retributive agreement, the tax is not paid after 3 years of ownership. The cadastral value of the calculation applies (70%) if the sale price is lower than the cadastral value.
The Tax Code of the Russian Federation is constantly being amended. So check the main source of Article 220.
The property tax deduction is provided by: the amount of income earned by the taxpayer during the tax period from the sale of houses, apartments, rooms, including privatized living quarters, cabins garden or plots or shares (shares) of such property belonging to the taxpayer within the minimum period of ownership of real estate, in accordance with Article 217.1 of this Code, not exceeding a total of 1,000,000,000 rubles
What tax on the sale of an apartment?
From the amount of income earned by the taxpayer during the tax period from the sale of other immovable property belonging to the taxpayer less than the minimum term of ownership immovable property established in accordance with Article 217.1 of this Code, not exceeding 250,000 rubles in total;
Code fiscal RF
Section 217.1. Features of the tax exemption of income from the sale of real estate 1. Exemption from taxation of income referred to in Article 217, paragraph 2, paragraph 17.1 of this Code, received by individuals who are tax residents of the Russian Federation Russia for the relevant tax period, as well as the determination of the tax base in the sale of real estate is based on the features set out in this article. 2. Except as otherwise provided in this article, the proceeds earned by the taxpayer on the sale of the immovable property shall be exempt from tax provided that such object is situated in the property of the taxpayer within the minimum property limit of the property or more. 3. For the purposes of this article, the minimum tenure of immovable property is three years for immovable property that meets at least one of the following conditions: (1) Ownership of immovable property is obtained by the taxpayer by inheritance or by contract of endowment of an individual recognized as a family member and/or close relative of this taxpayer in accordance with the Family Code of the Russian Federation; 2) Ownership of real estate is obtained by the taxpayer as a result of privatization (3) Ownership of real estate is obtained by the taxpayer through the transfer of property under a dependent life contract . 4. In cases not specified in paragraph 3 of this article, the minimum period of ownership of real estate is five years. 5. In the event that the taxpayer’s income from the sale of the property is less than the cadastral value of the property on January 1 of the year in which the property is realized State registration of the change in ownership of a property sold multiplied by a decline ratio of 0.7, for tax income from the sale of the property by the taxpayer is accepted equal to the cadastral value of this property from January 1, in which the state registration of the transition of property to the corresponding real estate object multiplied by a reduction factor of 0.7. In the event that the cadastral value of the object real estate referred to in this paragraph is not defined as on January 1 of the year in which the state registration of the transition of ownership of the property was carried out, the provisions of this paragraph do not apply. 6. According to the law of the subject of the Russian Federation, up to zero for all categories or individual categories of taxpayers and/or real estate objects can be reduced: 1) The minimum period of ownership of real estate specified in paragraph 4 of this article; 2) size down factor specified in paragraph 5 of this article. New construction taxes
The minimum period for the ownership of goods acquired under a DDU, an investment contract, an LSL participation contract or an assignment contract will not be calculated from the date of the real estate object to be owned and the time of payment under the aforementioned contracts.
In the event of the sale of housing premises or shares (shares) acquired by the taxpayer under the contract for the allocation of the rights of the claim under an equity construction contract (by an investment agreement or by another contract related to the construction of shares), the minimum term of ownership of such salon or such shares it is calculated from the date of full payment of debt rights under such contract of allocation of debt rights. »