Selling an apartment, even to buy another home, is considered a profit and is subject to income tax of 13%. However, the tax amount can be reduced by applying a sales tax deduction.
Necessary
- - 3-NDFL declaration;
- - a contract of purchase and sale with an indication of the cost of the apartment;
- - receipt of receipt of money or payment documents.
Instructions
Step 1
When you sell an apartment that has been in your ownership for more than three years, you do not need to pay income tax. If you have sold a home that has been owned by you for less than 3 years, be sure to pay income tax. Submit the 3-NDFL tax return, enclosing a purchase and sale agreement and payment documents on receipt of money, indicating the purpose of payment (if the payment was made in cash, present a receipt for receipt of money).
Step 2
The amount of income tax can be reduced by applying a tax deduction of 1 million rubles. For example, selling an apartment worth 5 million rubles, deduct one from 5 million, and charge 13% tax (4,000,000x13%) = 520,000 rubles on the remaining 4 million.
Step 3
Please note that the tax deduction for the sale of real estate is applied an unlimited number of times, but not more often than once a year. If you sell several residential properties in one year, the total income tax refund on them will be 1,000,000 rubles for all transactions or for one of them.
Step 4
To receive a tax deduction, write to the tax application, enclosing a sales contract and a receipt for receipt of money. In the absence of an application, you face the payment of both the tax itself and a fine for late submission of the declaration and payment of tax. So submit the 3-NDFL declaration by May 1 of the next year after the transaction is registered.
Step 5
Taking into account the current legislation, it is more profitable to sell an apartment after three years of ownership. After reviewing the declaration, the tax authority will transfer the due deduction to your account within 3 months.
Step 6
The tax deduction applies only to the owner of the home. In case of shared or joint ownership, the deduction is distributed in proportion to the share of the owners. If you lived in an apartment under a social tenancy agreement for many years before privatizing, and sold two years after privatization, then you should pay 13% income tax when selling your home.
