From January 1, 2014, a new version of Art. 220 of the Tax Code of the Russian Federation, which regulates the grounds and procedure for obtaining property deduction for personal income tax.
The most significant changes affected the property deduction for the cost of purchasing (building) housing. In particular, since 2014, a provision has been in effect according to which a taxpayer who has not used the entire amount of the deduction (currently 2 million rubles) in the acquisition of one real estate object, has the right to receive the remainder in the event of purchasing (building) other housing (paragraph 2 subparagraph 1, clause 3 of article 220 of the Tax Code of the Russian Federation).
New edition of Art. 220 of the Tax Code of the Russian Federation does not contain provisions on the distribution of a property deduction for the cost of acquiring housing between co-owners when purchasing real estate in common shared or common joint ownership. Thus, now each of the co-owners has the right to receive the specified deduction within 2 million rubles. If the participant of the common share or common joint property has not applied to the inspection, he retains the right to receive such a deduction for another property in full.
It should be noted that the property deduction for the cost of repaying interest on targeted loans (credits) is highlighted in a separate subparagraph (subparagraph 4 of paragraph 1 of article 220 of the Tax Code of the Russian Federation). This deduction is provided if there are documents confirming the right to a property deduction for the cost of purchasing housing and, unlike the latter, in relation to only one real estate object (clause 4 and paragraph 2 of clause 8 of article 220 of the Tax Code of the Russian Federation). In addition, there is a limit on its size – no more than 3 million rubles.
Among other things, the list of documents has been clarified that confirm the right to receive a property deduction for the cost of purchasing housing and which are submitted along with the corresponding declaration to the tax authority (subparagraph 6 of paragraph 3 of article 220 of the Tax Code of the Russian Federation). From January 1, 2014, a citizen does not need to submit an application to receive the specified deduction and deduction for interest expenses. As the committee indicated in its conclusion
State Duma on budget and taxes, in accordance with paragraph 1 of Art. 80 of the Tax Code of the Russian Federation, the declaration is a written statement of the taxpayer about the objects of taxation, about the income received and expenses incurred and about other data that serve as the basis for calculating and paying tax. In this regard, a separate application by a citizen is not required.
In paragraph 6 of Art. 220 of the Tax Code of the Russian Federation also legally establishes the possibility of parents (guardians, trustees, adoptive parents and adoptive parents) to receive property deductions for the costs of buying housing and for paying off interest in respect of real estate acquired at the expense of these individuals in the ownership of their minor children (wards) … Let us recall that the position on the legality of receiving this deduction by the parents was expressed by the Constitutional Court of the Russian Federation in the Decree of 01.03.2012 No. 6-P.
In addition, in par. 3 p. 8 art. 220 of the Tax Code of the Russian Federation establishes the right of an individual to receive property deductions for housing costs and to repay interest from several tax agents.
The provisions of the new edition of Art. 220 of the Tax Code of the Russian Federation apply to legal relations that arose after January 1, 2014 (clause 2, article 2 of Federal Law No. 212-FZ of 23.07.2013). If the right to receive a property deduction arose in an individual before the specified date, then such legal relations are governed by the norms of the Tax Code of the Russian Federation in the version that was in force before the amendments were made, even if these relations were not completed at the beginning of 2014 (clause 3 of article 2 of the Federal Law of 23.07.2013 No. 212-FZ). In paragraph 4 of Art. 2 of Federal Law No. 212-FZ dated July 23, 2013, it is specifically noted that the limitation on the amount of property deduction in the amount of interest payments does not apply to targeted loans (including refinancing) received before January 1, 2014.