What Is Tax Deduction

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What Is Tax Deduction
What Is Tax Deduction

Citizens of the Russian Federation are obliged to pay taxes - this is their constitutional duty. But a fairly decent part of the money can be returned if you take advantage of the tax deductions guaranteed by the state.

You can calculate the deduction yourself
You can calculate the deduction yourself


Step 1

Tax legislation provides for the possibility of reducing the tax burden through tax deductions for certain types of taxes. Each tax is calculated from a certain amount, the so-called taxable base. A tax deduction implies a reduction in the taxable base.

Step 2

There are five types of tax deductions:

-standard deductions are provided to the taxpayer subject to certain conditions, for example, when income is below a certain minimum;

-social deductions are provided by a taxpayer who has incurred a certain kind of spending, for example, medical treatment. The list of cases is determined by law;

-professional deductions are available to representatives of a number of professions, as a rule, the creative intelligentsia;

- property deductions are the most common type. The property deduction is provided to the taxpayer who made the real estate purchase and sale transaction.

Step 3

Receiving tax deductions is available only to citizens who have official employment, that is, who pay personal income tax. These may also include registered individual entrepreneurs applying the general taxation system, if they provide deduction for costs not related to the implementation of professional activities. Tax residents of the Russian Federation, as well as tax non-residents residing in the territory of the Russian Federation for 183 days, have the right to deduction under real estate purchase and sale transactions.

Step 4

The tax deduction can be provided for the amount received from the purchase and sale of real estate both on the territory of the Russian Federation and abroad. The deduction amount reduces the taxable base by 13%. But there is a limit on the taxable base, above which the deduction is not issued. So when buying real estate, the limit of the amount subject to tax deduction is determined at the level of legislation at 2,000,000 rubles, that is, the tax deduction will be 13% of 2 million rubles and equal to 260,000 rubles. When selling real estate, the taxable amount is formed according to two schemes at the choice of the taxpayer:

-the difference between the sale and purchase value;

-sale value minus 1 million rubles.

Step 5

You can get a refund in one of two ways. You can get the total amount of deductions to a bank account at the end of the year or not pay personal income tax for a certain time. In the first case, the taxpayer himself draws up the necessary documentation through the tax authorities, in the second case, the tax agent (employer) draws up the deductions.

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