Real estate taxes in 2022 for individuals

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

Real estate taxes in 2022 for individuals on sale, gift or inheritance are determined by changes made to the legislation five years ago. The need for such transformations is caused by a lot of unfair manipulations, as well as the provision of certain bonuses to those who sell their own living space, and do not engage in transactions for commercial profit.

What did the legislative innovations mean?

Five years ago, from the first day of 2016, amendments to the current legislation came into effect, which affected a wide range of people who were engaged in withholding taxes from income or who made transactions to obtain commercial profits, disguising them as being carried out for their own needs. Statistics and calculations made it possible to find a strange pattern: even those with an average income in general perform such actions 1-2 times in their lives. Against this background, a small category stood out, which regularly buys and sells housing.

Legislative updates established that real estate taxes in 2022 for individuals upon sale are levied not only from owners of properties in the primary market, but also from those who sell secondary housing. Personal income tax may not be paid by people whose actions do not show the sale of living space that brings profit to the owner.

Main signs:

• an apartment was sold for a lower cost, a more expensive one was purchased in return;
• the owner lives in the real estate object being sold for 3 years or more (earlier this period was longer);
• if housing is purchased and sold at an equal cost;
• if the apartment or house is bought at a higher price and sold at a lower price.

There are nuances provided to curb value manipulation undertaken to meet the stated conditions. Property tax is calculated not on the inventory value, but on the cadastral value, and the price of the real estate being sold must not be less than 70% of the established figure.

Real estate taxes in 2022 for individuals on sale will not undergo significant changes. Individual income tax in the Russian Federation is 13%. A homeowner who made a profit from a transaction, lived in it for less than 3 years or privatized an object less than 3 years ago, must pay a fee to the state. If the owner owns several objects, the entry into force of the new law (in 2016) means the need to live in the apartment or own it for at least five years. If it is purchased before the specified period or a profit is made during the sale, the person pays personal income tax, but is exempt from income tax.

You can not pay sales tax, provided that a person has only one property, he bought the second, and sold the first one within three months from the date of the transaction. But in this case, it is necessary to live in the sold apartment for at least three years in order not to pay personal income tax.

How to correctly determine the length of ownership

Prior to the entry into force of the new law, the total tax exemption period for all owners was at least five years, and there were no misunderstandings. The time limit is now 5 years in one case and 3 years in another. If it is not respected, the person pays 13% of the sale. If you need to conduct a transaction urgently, you will inevitably have to pay income tax. In different cases, nuances are assumed in establishing the date of origin of ownership.

An extract from Rosreestr, which will be required in any case, fixes it for specific circumstances:

• upon purchase - from the moment of payment of contractual obligations in full (this also applies to a new building, for which money began to be paid at the construction stage);
• property transferred into ownership from the moment of signing the transfer deed;
• inherited - from the date of death of the testator;
• old, without documents confirming ownership - according to the documentation of the bureau of technical inventory.

Determining the amount of the duty to be paid is not difficult, because 13% is paid only on the profit received. If an apartment is sold for more than it was paid for, or if it is sold more expensive, but bought with less weight, the tax is paid on the amount of money that remained with the owner.

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Nice gifts

Real estate taxes in 2022 for individuals when donating must also be paid: those who receive such gifts sometimes have to fork out. The donor does not pay taxes, because he does not receive profit, but the donee immediately becomes the owner of property of considerable value. This need is also indicated by changes in the NDT, with which more nuances have to be taken into account.

You can not pay tax, provided that the donor and the donee are close relatives (parents, children, brothers and sisters, husband and wife who are legally married, grandparents and their grandchildren). When it comes to fraternal relationships, this applies only to siblings or half-brothers or sisters. In other cases, real estate taxes in 2022 for individuals with donation remain: a mother-in-law cannot receive a gift from a son-in-law, and a mother-in-law cannot receive a gift from a daughter-in-law, without paying 13% of the value of the object established by the cadastre at the beginning of the year in which the act of donation.

To formalize such an act between people in a civil marriage, you will have to obtain a court order in which they are recognized as spouses. In the presence of such a resolution, gifts can be made by mother-in-law and mother-in-law, father-in-law and father-in-law, if they live with the donors together, and the court recognized them as members of the same family.

The FTS also clarified other nuances of taxation: upon termination of the gift agreement, you can not pay taxes, but only on condition that an amendment has been made to the USRN or the transfer of ownership has not yet been recorded. When selling a gift, the same conditions apply (3 years have passed if received from a relative, and 5 years in other cases). You can calculate the tax on the sale of an apartment in 2022 using the standard rate of 13%, and if the apartment costs more than 5 million rubles, then 15%.

Outcomes

1. Citizens of the Russian Federation must pay the state sales tax, provided that they made a profit in this act. The property was sold for more than it was bought. One apartment was sold, and another was bought, but cheaper than the one previously owned.
2. Close relatives can receive a gift without taxation.
3. Having sold a donated apartment for equal or less value, the gifted person may also not pay personal income tax.