Tax on the sale of an apartment (less than 3 years) in 2022 for individuals

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

According to Russian laws, an individual who has sold an apartment for less than 3 years in ownership is required to pay tax.

Categories of persons liable to pay income tax

Citizens living in the country and receiving income from the sale of real estate are required to pay tax. 13% of the sale value of the apartment - income tax paid to the state.

Citizens who are not residents of the Russian Federation, but who sell real estate on the territory of the state, are also required to pay tax. The income of non-residents of Russia is taxed at a rate of 30%. Tax exemptions do not apply to residents of other countries.

Apartment owners who sell real estate within three years from the date of purchase are required to pay income tax. Provided that the apartment was purchased through a sale and purchase transaction.

In what cases a person is exempted from personal income tax

We do not consider those cases when the minimum period of ownership of housing is observed (three and five years, respectively).

Several positions can be called exceptions to the rule:

1. If the income from the sale of the apartment was not received.
2. By decision of the regional authorities.

In the first case, they bought a property for a higher price, sold it for a lower one. No profit was received.

Interesting! Personal property tax in 2022

In the second, city or regional authorities have the right to issue a law that reduces tenure to zero. As a result, the minimum period during which a citizen is the owner, and then can sell housing without paying tax, has been reduced to two years.

According to the decision of local authorities, the owner has the right to sell residential real estate, which he has owned for less than five years, without paying tax if:

• an apartment is the only place of residence;
• the property was acquired as a result of a sale and purchase transaction, and not inherited.

Calculator: how to calculate the tax amount

How to correctly calculate the tax on the sale of an apartment in 2022, which was owned for less than 3 years, for individuals?

The tax legislation introduced an amendment to the conditions for the payment of tax on the sale of an apartment.

The tax is levied on 70% of the property value according to the cadastre. If an amount is indicated in the purchase and sale agreement that is less than the cadastral amount, the tax is calculated from a larger one.

If a citizen sold an apartment at a price lower than he bought, the tax will still have to be paid.

Example. The apartment on the market is worth 3 million, sold for 2 million. The tax is paid in the amount of 70% of the cadastral value.

3,000,000 x 70% = 2,100,000. The tax is paid on the amount of 2.1 million rubles.

The former owner pays 13% of the sale of real estate that was less than three years old in value. The transaction price should not exceed 5 million rubles. If an apartment is sold worth more than 5 million, a 15% higher rate applies.

Then, when calculating the tax, the amount from the sale can be divided into two parts.

From 5 million you need to pay 650,000 rubles. From each subsequent million to 150 thousand rubles.

Example! 7 million rubles - the price of an apartment. The tax amount will be 950 thousand rubles = 650 + 300

How to legally reduce the amount of tax

If you indicate an underestimated (inaccurate) cost of an apartment in the sale and purchase documents, after a while the information will still appear in the tax office.

For the next year or within three years, the buyer of the apartment will want to receive a property tax deduction. Submit to tax bills, with figures of the real cost of the apartment.

The Tax Code allows reducing the amount of income tax without violations.

A deduction for the purchase of a new home or a property tax deduction will help reduce the amount of tax paid.

In the first case, 13% will need to be paid on the difference between buying and selling.

Interesting! Tax refund when buying an apartment in 2022 for individuals

Example! We bought an apartment in 2020 for 3 million rubles. Sold in 2021 for 4 million. A 3-NDFL declaration must be submitted to the tax office in 2022. The tax will be calculated from 1 million rubles.

13% x 1,000,000 = 130,000

In the second case, the maximum amount of property tax deduction is 1 million rubles. It is this figure that can be used to legally reduce the amount of tax.

In 2021, they sold an apartment inherited in 2019. The minimum tenure period of three years has not been passed. So you have to pay income tax. The sale amounted to 4 million rubles. By submitting documents for a tax deduction, you will be able to reduce the amount of tax.

You will have to pay 13% from 3 million.

13% x 3,000,000 = 390,000

When calculating the amount of tax on payment of the sale of an apartment, two deductions cannot be used at the same time.

It is necessary to calculate which deduction will be more profitable to use in the calculation and apply it. It is possible to use the property tax deduction or the expense figure for the purchase of real estate.

All homeowners can take advantage of the property deduction.

If the property is owned by a married couple in equal shares (½ in half), both persons are entitled to a property deduction.

Example! It will be cheaper to pay tax if the transaction is drawn up with two contracts. Everyone sells their share. And then everyone draws up a property deduction in the amount of $ 1 million.

It is important to consider! The property tax deduction can only be used by citizens who are officially employed.

The company must deduct 13% from the employee every month and pay this percentage in the form of tax. The tax that has already been paid from the salary, or which has been calculated, is subject to a percentage refund.

Then, when receiving income from the sale of real estate, a citizen is entitled to this tax benefit.

What documents are needed to pay tax

What will be required to register the tax on the sale of an apartment in 2022, which has been in ownership for less than 3 years, for individuals?

First you need to fill out a tax return in the form of 3-NDFL.

Then documents are collected: a passport, a sales contract, an extract from the State Register, bills confirming the payment.

The tax return must be accompanied by an application for the registration of a property deduction or copies of documents confirming the expenses for the purchase of real estate.

The documents, together with the declaration, are submitted to the tax office. This can be done in person or online through the taxpayer's office.

Failure to pay tax is considered an offense. A penalty is imposed as a percentage of the unpaid amount. Administrative or criminal liability is possible.

Tax return deadlines

If the sale of an apartment that has been in the property for less than 3 years did not bring profit, it is still required to fill out and submit a tax return. The inspection must be notified of the transaction, otherwise questions may arise.

It is necessary to report to the tax office on the receipt of income within a certain time frame. The declaration is submitted to the inspection no later than April 30 of the next year. The document indicates the amount of income received. The accrued tax is paid no later than June 15th.

Outcomes

1. The tax on the sale of an apartment for less than 3 years of ownership can be legally reduced.
2. Official employment allows you to use tax benefits.
3. The expenses for the purchase and sale of real estate must be documented for the tax office.