This type of compensation can only be counted on after receiving the title. When you buy a home with your own funds, you can apply for a preferential payment the following year after the transaction is completed. But in the case of a mortgage loan, the property is owned by the bank until the debt is fully repaid.
Let's say you took out a mortgage in 2022 and will be paying it off until 2037. Starting in 2023, you can apply for interest reimbursement only, and in 2038, for partial reimbursement of the cost of the home.
Time limits
There is an upper limit: the preferential payment is not available until you have registered your property rights. You can return part of the personal income tax for the last three years, but only the tax that you paid as the owner of the property. For clarity, here are four examples:
You received the title in 2018, received official income shandong mobile number database from 2018 to 2022 and paid 13% to the state. In 2023, you can only request compensation for 2020, 2021 and 2022. The period from 2017 to 2019 cannot be taken into account.
The title was acquired in 2021. In 2023, you can only offset the tax costs for 2021 and 2022. 2020 will not be taken into account, since you were not yet eligible for the benefit.
You bought an apartment in 2015, but officially started working only in 2020. Starting in 2021, you can apply for compensation for previously acquired real estate. In 2023, you can apply for a deduction for the previous three years.
You bought an apartment in 2015 and were officially employed at the time, but did not use the benefit. There has been no official employment for the last three years. At the moment, you cannot count on the benefit, but you retain the right, and you will be able to use it in the future.
The conditional lower limit is 2014, when the payment rules changed. Before that, compensation was tied to the property, and after that, the taxable amount was set at 2 million ₽. If the transaction was completed before 2014, you can count on a benefit, but only once. That is, if you pay less than 260,000 ₽, the remainder is not transferred to other acquired properties.
If the mortgage loan was issued before 2014, there is no interest limit. You can return 13% of the total amount of interest paid, provided that your official income allows it.
What documents are needed?
The exact list of documents may change, so it should be clarified on the FTS website. To pay interest, the following is usually required.