Tax deduction when buying an apartment for individual entrepreneurs (nuances)

Private practicing lawyer Victoria Suvorova (Pyatigorsk) answers:

If you are registered as an individual entrepreneur, but do not work either under an employment contract or under a civil law agreement (civil law), then, unfortunately, you do not have the right to a tax deduction. To receive a tax deduction, you must be a payer of personal income tax (personal income tax - 13%). As an individual entrepreneur, you do not pay personal income tax and have no right to deduction. If you are married and your husband pays personal income tax (documented under an employment contract and/or under a civil process agreement), then he has the right to receive a tax deduction when you purchase a home.

Tax refund when buying a home

Is it possible to get a tax deduction again?

Who is entitled to a tax deduction?

As already mentioned, not all individual entrepreneurs can apply for a tax deduction after purchasing real estate. In order to receive it, individual entrepreneurs must meet a number of parameters.

An individual entrepreneur must apply the general taxation regime, since only it implies the payment of personal income tax, which means that the entrepreneur is obliged to keep strict records of tax reporting and accounting, maintain a Book of Income and Expenses, pay VAT and perform all other procedures required by OSNO. The special tax regimes of the simplified tax system, UTII, unified agricultural tax, as well as the Patent system do not provide the opportunity to make a tax deduction from the purchase of real estate, since businessmen subject to these types of taxation are exempt from paying personal income tax. But there are also exceptions here: they apply to those individual entrepreneurs who, in addition to income under a special tax system, have income subject to personal income tax at a rate of 13% (for example, if a businessman combines tax regimes with OSNO).
An individual entrepreneur must have a profit with which he can pay personal income tax at a 13% rate. In this case, an exception is made for income received as part of dividends and participation in the share of a legal entity.
Individual entrepreneurs paying personal income tax are required to submit a declaration in form 3-NDFL to tax specialists at their place of residence by April 30 (inclusive) of the year following the reporting year. It must indicate information about the accrued tax and the amount of deduction that the individual entrepreneur expects. If a businessman also has income for which he must provide the tax authorities with a 2-NDFL certificate, then in order to receive a deduction he is obliged to transfer this to the tax service (most often this applies to entrepreneurs who rent out property as individuals and individual entrepreneurs who additionally work under employment contracts).
An individual entrepreneur must have on hand a complete list of documents proving the fact of purchasing housing (certificate, agreement, deed, etc.).
And finally, the last condition that must be fulfilled in order to receive a tax deduction: the purchased apartment or other real estate must be registered either in the name of the individual entrepreneur himself, or in the name of one of his children, or in the name of his spouse.

Thus, only if all of the above conditions are met, an individual entrepreneur receives the right to a tax deduction.

Attention! Individual entrepreneurs have the opportunity to receive the desired deduction even if they plan to use the purchased apartment for commercial purposes. That is, for the purposes of tax deduction, the reason for purchasing the property does not matter.

For your information. If an individual entrepreneur is married and his other half has income from which personal income tax is paid in the amount of 13%, then when purchasing real estate, the husband or wife of the individual entrepreneur can receive a full tax deduction. The reason for this is that according to the law of the Russian Federation, spouses have common property, as well as equal rights and obligations.

Answered by lawyer, K. Yu. n. Yulia Verbitskaya:

Current legislation provides for a number of cases when an individual entrepreneur has the right to claim a tax deduction when purchasing an apartment.

The first mandatory condition is that the individual entrepreneur has income taxed at a rate of 13% (personal income tax), with the exception of income received from equity participation in organizations (dividends) and winnings, for which tax deductions are not applied.
The second requirement is a declaration in Form 3-NDFL, which must be submitted to the tax office. It must indicate not only the calculated tax, but also the amount of deduction that the individual entrepreneur is claiming.
The third condition is the availability of documents confirming the purchase and payment for the apartment.
The fourth condition is the registration of the purchased apartment as the property of the individual entrepreneur, his spouse or child.

Provided that all four requirements are met, you have the right to claim a tax deduction in the manner prescribed by law.

Can a non-working pensioner receive a tax deduction?

Can a working pensioner receive a tax deduction?

Tax deduction when purchasing an apartment by an individual entrepreneur

So, which individual entrepreneurs are eligible to receive a tax deduction and who are not?

In order to obtain the right to take advantage of a property deduction when purchasing an apartment, an individual entrepreneur must meet the following mandatory requirements:

An individual entrepreneur must have income on which he pays personal income tax at a rate of 13%, with the exception of income received from equity participation in an organization (so-called dividends), as well as winnings (received by participants in gambling and lotteries), in for which tax deductions are not applied (see paragraph 2, paragraph 3, article 210 of the Tax Code of the Russian Federation). Here we immediately note that individual entrepreneurs who are under special tax regimes, such as the simplified tax system, unified agricultural tax, PSN, cannot take advantage of the tax deduction when purchasing an apartment, since they are exempt from paying personal income tax. An exception in this case will be if an individual entrepreneur, in addition to income, has a special income regime under which he pays personal income tax at a rate of 13% (see letter of the Ministry of Finance of the Russian Federation dated May 22, 2007 No. 03-11-05/111).

See also “Individual entrepreneurs with special regimes do not have the right to deductions for personal income tax .

To explain this situation more clearly, let's look at an example.

Ivanov A.V. has his own car, in which he delivers goods to points. He is registered as an individual entrepreneur, the simplified taxation system is “income”, however, in addition to this activity, he has additional income from renting out an empty apartment, from which he pays personal income tax.

IMPORTANT! In order to receive a tax deduction when purchasing an apartment, an individual entrepreneur must have income taxed at a rate of 13%, otherwise he is deprived of the right to receive a deduction.

An individual entrepreneur who pays personal income tax for himself is obliged to submit a declaration in form 3-NDFL within the period established by law (by April 30 of the year following the reporting year). It must reflect both the calculated tax and the amount of deduction claimed by the individual entrepreneur. In the case when an entrepreneur has income for which he can also submit a certificate in form 2-NDFL (as a rule, this applies to individual entrepreneurs who additionally work under an employment contract or rent out any property as an individual), then he submits and her.
It is mandatory to have documents confirming the purchase of the apartment (agreement, deed, registration certificate).
The purchased apartment is registered as the property of an individual entrepreneur, his wife or child.

If all the above requirements are met, an individual entrepreneur has the right to receive a tax deduction when purchasing an apartment.

Whether the spouse of an individual entrepreneur with a special regime has the right to claim a property deduction, find out in the expert opinion of ConsultantPlus. Get trial access to the system and start learning the material for free.

IMPORTANT! According to the letter of the Ministry of Finance of Russia dated April 16, 2015 No. 03-11-11/21776, a tax deduction when purchasing an apartment can be obtained even if the purchased apartment will be used in business activities, i.e. in this case, the purpose of purchasing an apartment does not in any way affect the procedure for granting the deduction.

Assessment for the Ministry of Finance

Let us add that today the amount of tax deduction when purchasing an apartment is 2,000,000 rubles, and you can get 260,000 rubles in your hands. (2,000,000 × 13% = 260,000). Deduction for the purchase of an apartment in the amount of 260,000 rubles. can only be obtained once in a lifetime.

The tax return form for filing a deduction can be downloaded in this material.

Does a self-employed citizen have the right to claim a property deduction? For expert advice on this issue, see ConsultantPlus. Get trial access to the system for free.

Property tax deduction

The procedure for providing property deductions is regulated by Article 220 of the Tax Code of the Russian Federation. An individual entrepreneur has the right to receive a deduction when selling and purchasing property.

Let's look at it in order.

Tax deductions on the sale of property are provided in the following amounts:

1 million rubles - when selling housing that has been owned for less than five years;
250 thousand rubles - for the sale of other real estate, as well as the sale of movable property owned for less than 3 years.

Please note: this deduction is not available to individual entrepreneurs if the property was used in business.

Tax deductions for the purchase or construction of housing are limited to 2 million rubles . If real estate is purchased with a mortgage, then the taxpayer is entitled to a deduction for the interest paid to the bank. This deduction is provided in the amount of 3 million rubles. These deductions do not provide for their re-receipt. That is, if an individual entrepreneur previously took advantage of the deduction when purchasing an apartment, then it will no longer be possible to receive it when building a house.

Professional tax deduction for individual entrepreneurs

Article 221 of the Tax Code of the Russian Federation allows individual entrepreneurs to reduce income received as part of commercial activities by the amount of expenses. That is, an individual entrepreneur can take advantage of the so-called professional tax deduction. Expenses for which the taxable income of individual entrepreneurs are adjusted are determined in accordance with Chapter 25 of the Tax Code of the Russian Federation.

At the same time, the Tax Code of the Russian Federation contains criteria that must be taken into account when including expenses in the professional deduction:

expenses must be supported by documents. Otherwise, the deduction is limited to 20 percent of the entrepreneur's income;
the expenses were incurred for the commercial activities of the individual entrepreneur, that is, they are not related to his family expenses.

In addition, the professional deduction includes insurance premiums for compulsory health insurance and compulsory medical insurance, which were accrued and paid by the individual entrepreneur for the corresponding period, as well as the amount of property tax, provided that the object is used in the individual entrepreneur’s business.

It should be noted that an individual entrepreneur has the right to take into account the costs of using property acquired before the registration of an individual entrepreneur. It is important that the object be used in commercial activities in the future. The tax authorities are not against this (letter dated July 25, 2013 No. ED-4-3/ [email protected] ).

The procedure for obtaining a tax deduction

In order to take advantage of personal income tax deductions, an individual entrepreneur must submit a declaration in Form 3-NDFL to the tax office at his place of residence. Documents giving the right to receive one or another deduction should be attached to the declaration.

Thus, for a property deduction, a package of documents confirming the purchase or sale of an object is required. The right to a standard deduction will be confirmed by the child’s birth certificate and a document certifying the right to the benefit. The professional deduction will be confirmed by all expense documents, an investment deduction, an agreement for maintaining an individual investment account or an agreement on brokerage services.

Social tax deduction

An individual entrepreneur can count on social deductions, the rules for receiving which are prescribed in Art. 219 of the Tax Code of the Russian Federation. By virtue of this norm, deductions are provided for expenses:

for education;
for treatment;
for donations;
for non-state pension provision and (or) voluntary pension insurance and (or) voluntary life insurance;
to pay additional contributions to the funded pension;
to undergo an independent assessment of their qualifications.

There is a total limit of 120 thousand rubles for all types of social payments. The exception is deductions for children's education and expensive treatment.

Let's consider these types of social payments in more detail.

An individual entrepreneur can receive a deduction for personal education, as well as for the education of his children under 24 years of age, as well as his brother and sister. In the latter case, the deduction amount is 50 thousand rubles for each child (sister, brother) in the total amount for both parents.

To receive a deduction for the education of children, wards, as well as siblings, it is important that the form of education is exclusively full-time (for yourself, it does not matter). Also, a deduction will not be given if it turns out that the educational institution does not have the appropriate license.

The medical deduction can be used for expenses on medical services provided personally to the individual entrepreneur, as well as to his children, spouse and parents. In addition, an entrepreneur can receive personal income tax preferences on the costs of purchasing medications prescribed by a doctor.

If an individual entrepreneur donates money to citizens, medical, educational organizations, social service institutions, charitable and scientific communities, foundations, museums and other organizations, then he has the right to receive a deduction for donations. The amount of deduction is limited to no more than 25 percent of annual income. If an entrepreneur makes donations to cultural institutions and non-profit organizations in this area, then the maximum deduction amount is 30 percent.

A deduction for pension insurance is due to an individual entrepreneur when paying pension contributions under an agreement with a non-state pension fund (NPF), when paying insurance premiums under a voluntary pension insurance agreement concluded with an insurance organization, when paying contributions under a voluntary life insurance agreement for a period of at least 5 years.

If an individual entrepreneur pays additional contributions to a funded pension, then he is entitled to a corresponding deduction. An individual entrepreneur has the right to reduce his tax base by the amount of additional insurance contributions paid for a funded pension.