Tax on sale of an apartment when to pay and how to reduce

When to pay tax on the sale of apartments is not necessary

Pay taxes, and even submit a declaration is not requiredTax Code, Article 217.1If you owned housing longer certain period. So, enough to real estate has been owned by 3 years, or 36 full months, if you:

• We purchased it before January 1, 2016;
• We received as a gift from relativesRF IC, Article 14 relatives: parents, children, grandparents, grandchildren, brothers and sisters;
• privatized it;
• We received inheritance or under a contract of life maintenance of a dependent.

If all of these statements do not mean you, then, to avoid paying taxes, apartment or house you need to own a 5-year or 60 full months.

January 1, 2020 will come into force changesFederal Law of 26/7/2019 number 210-FZ in the tax code. Without paying taxes after 3 years of ownership can be sold and housing, which you received by not appearing in the above list. But only on condition that they have only one. If you owned another apartment or a share of it, the minimum ownership period of 5 years.

If you are a Muscovite, received housing under the program of renovation and decided to sell it, then count the years of ownership of the two apartments - and a new and liberated.

When to pay tax on the sale of the apartment needed

Those who owned the estate is less than the prescribed statutory period, it is necessary to declare and pay income generationTax Code, Article 224. tax rates with it the tax on personal income - 13%.

If you bought an apartment until January 1, 2016, the tax is calculated based on the amount specified in the sales contract. If after, you have to compare, which is greater, the price of the contract or the cadastral value, multiplied by a reduction factor of 0.7. This measure is introduced to the owners did not have the temptation to prescribe in the contract of purchase and sale of low price and hide part of the revenue.

The RF subjects mayTax Code, Article 217.1 independently reduce the discount rates or minimum terms of tenure up to scratch. This facilitates the tax burden on the citizens of the region with the sale of housing, or exempt them from it.

To pay the tax, you have until April 30, following the year of the sale of apartments, submit a declaration to the tax office 3-PIT. In it, you specify all the profits of the previous year, including profit from sales of apartments. Pay tax should be until 15 July.

How to reduce the tax on the sale of an apartment

Tax seems monstrously huge. But it is possible to legally minimizeTax Code, Article 220. Property tax deductions - down to zero.

1. Reduce the amount of income the amount of expenses

You sold the apartment and got money for it, but that does not mean that the entire amount - it is income. Before that, you have bought the property and is likely significantly to it to spend. On this amount, you can reduce the profits that are subject to personal income tax.

For example, you've sold over 3 million apartment, bought 2 years ago for 2.8 million. Under contract purchase and sale Personal income tax would amount to 390,000. But if you're bragging about spending, the tax will be levied only 200,000 difference. Respectively, will have to pay only 26 thousand.

If you sell the apartment for the same amount as the buying, then there is no income tax and is not required to pay him. But the declaration submitted still have, to document their right to exemption from payment.

2. Get a tax deduction

If you did not have the expense of buying, for example got an apartment in the inheritance, you can use tax deduction. Upon the sale of apartments, houses, rooms, or share in them he is 1 million rubles.

Let's say you sell property for $ 2.3 million and have to pay the State 299 000 rubles. The deduction will reduce the amount that is taxed, to 1.3 million, and the payment will be reduced to 169 thousand.

If the apartment is worth less than a million, you pay nothing at all do not have to. So in the case of inexpensive real estate is better not to reduce the amount of income the amount of expenses, and use deduction. The more so because the law allows it to receive once a year.

remember that

1. Revenues from the sale of apartments subject to personal income tax at a rate of 13%.
2. Contributions can legally reduce down to zero, if you reduce revenues for the amount of the costs or to get a tax deduction.
3. If you have a property for longer certain period, you can not pay the tax and not to file tax declaration.