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How to get your mortgage interest back through the tax office

Repayment of interest on mortgages from previous years is a procedure that greatly helps to facilitate the process of buying real estate.

However, in order for an individual to receive material compensation of this kind, he will need to comply with certain rules and conditions established by Russian tax legislation. This article will discuss in detail all aspects that affect the calculation of compensation for interest paid.

As a rule, if an individual acquires a property on a mortgage, then in addition to repaying the basic value of real estate, he is obliged to pay additional accrued interest. The reduction of the taxable base in this case is carried out in two stages - a separate registration of a deduction for expenses related to the payment of the cost of housing, and a separate registration of a tax discount for interest payments.

ATTENTION! Since the mortgage is provided for various property objects, before submitting documents for the return of personal income tax, we recommend that you familiarize yourself with article number 220, located in the Tax Code, which provides regulations on all issues related to the procedure for calculating property discounts.

Interest Deduction Terms and Conditions

So that individuals do not waste their time in collecting and processing documentation for the return of income tax for expenses that went to pay interest on a mortgage, we advise you to pay attention to the following conditions regarding the provision of a deduction of this kind:

  • You have to be a taxpayer. To receive a property mortgage tax discount on interest, one must comply with one prerequisite - be a taxpayer and, accordingly, pay personal income tax from all sources of income on time;
  • Draw up the deduction on time. Sometimes it happens that the taxpayer enters into a mortgage agreement with the bank much earlier than he receives the right to ownership of the property. In such a situation, documents for an interest discount must be submitted no earlier than the next year after the year of obtaining ownership;
  • The amount of the deduction must be within the acceptable range. The reduction in the tax base is usually calculated by finding 13% of the cost. However, you should not forget about the maximum allowable limits. In this case, this is a deduction amount equal to three million rubles. That is, the maximum compensation is 390,000 rubles;
  • You can only claim a discount for paid interest. Many individuals who have partially paid off their mortgages are trying to get an income tax refund in advance. This process is impracticable, since compensation for the payment of credit interest is charged only for payments made by the taxpayer;
  • Receive a property deduction for the first time. In some situations, individuals submit documents simultaneously for two types of mortgage tax credits - basic and percentage, but at the same time I do not know that the deduction for the purchase of property is charged only once in a lifetime. Therefore, if the taxpayer has already returned the tax on housing, then it makes no sense to draw up documents for a mortgage discount.

It should be noted that if, for example, a claimant for property compensation has paid interest payments since 2010, received ownership of real estate in 2012, and started to formalize a reduction in the size of the taxable base only in 2017, then when calculating the amount of expenses on mortgage interest, you need to take into account expenses starting from the very first payment.

How to get your mortgage interest back through the tax office

In order to receive compensation for interest payments on a mortgage, as prescribed by law, a taxpayer needs to contact the employer and require the provision of some documents, some of them should be drawn up on their own, and some papers should be taken from the bank that issued the loan.

Then, an applicant for a reduction in the size of the taxable base must transfer all the collected documentation to the tax authority, which is located at the place of his registration. And after the papers submitted for consideration have passed a desk audit, the duration of which is usually no more than 120 days, the funds will go to the taxpayer's bank card.

How is the deduction calculated?

Tax legislation has adopted one rule stating that an individual can receive a small amount for a year as compensation than there, which was given to the state budget for income tax during the same period. In this regard, it is inappropriate to issue a discount on mortgage interest until the individual is fully paid the basic compensation.

Documents for the return of income tax on interest

After the taxpayer has already taken advantage of the return of personal income tax on the main part of the loan and, accordingly, has previously transferred all the papers necessary for this procedure to the tax office, literally several documents will need to be collected to return the interest on the mortgage. Documentation required to provide compensation for mortgage interest payments includes:


How often do you need to submit documents to the tax office

In most situations, taxpayers do not take advantage of such an opportunity as the return of interest on a mortgage. As a rule, they are driven by the fact that the amount of the tax rebate is insignificant, and a huge amount of time has to be spent on collecting and submitting documents to the tax office.

There is one way that makes this process much easier and still get the much-desired material compensation - this is the filing of documents for deduction in several years at once. Thus, documents can be drawn up only once in several years, and indicate in them the total amount of expenses incurred by the taxpayer over several years at once.

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