Tax refund for building a house: how to prepare documents

In what cases are you entitled to a deduction What can be included in the deduction What cannot be included in the deduction If payment documents are lost When can you apply for a deduction Documents for deduction when building a house Amount of deduction when building a house Did you take out a loan to build a house? House finishing costs

If you built a house, you can get back some of the money spent on construction. It doesn’t matter whether it was your personal savings or borrowed ones. This is stated in paragraphs. 3 and 4 clauses 1 art. 220 Tax Code of the Russian Federation. In the first case, you receive a tax deduction for the construction itself, in the second, you also receive a tax deduction for the interest you paid to the bank for the loan.

In order to receive a property deduction for a built house, a number of conditions must be taken into account.

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In what cases will you receive a deduction?

The conditions are the same as when buying an apartment:

1. You are a tax resident of the Russian Federation.
2. Officially employed, and the employer pays 13% income tax (NDFL) for you.
3. You have on hand documents confirming the costs of purchase and construction.
4. The property was not purchased from a dependent person (spouse, parents (including adoptive parents), children (including adopted children), full and half siblings, guardian (trustee) and ward - Article 105.1 of the Tax Code of the Russian Federation).
5. You did not use the right to receive a deduction or its balance.

If there are no problems with these conditions, then we analyze the property. You will receive a deduction if:

1. We bought or built a house. At the same time, it does not matter at all how they built it: on their own or resorted to the help of hired workers. The main thing is to keep documents confirming expenses.
2. We bought a plot of land for the construction of a residential or garden house. What is the difference between a residential house and a garden house, and whether a garden house can become residential, we will look into it below.

How much tax can be returned from the budget?

The maximum deduction amount for the purchase or construction of a house is 2 million rubles (clause 1, clause 3, article 220 of the Tax Code of the Russian Federation). This means that only 13% of this amount – 260 thousand rubles – will be returned to your account.

If a house is purchased with a mortgage, then a deduction is allowed for the interest paid. Thus, the limit amount increases to 3 million rubles, and the amount of tax refund will be 390 thousand rubles.

Remember that the purchase or construction deduction can be used once in a lifetime, but for several real estate properties. This innovation has been in effect since January 1, 2014. And you can also receive a deduction for interest paid once, but strictly for one piece of real estate (clause 1, clause 3 and clause 8 of Article 220 of the Tax Code of the Russian Federation).

If you are legally married, then be prepared for pleasant bonuses. Each spouse has the right to a deduction (Letters of the Federal Tax Service dated November 14, 2017 No. GD-4-11/ [email protected] , GD-4-11/ [email protected] ). By this it should be understood that instead of 260 thousand rubles, spouses can return 520 thousand rubles. At the same time, it does not matter to whom the title and payment documents are issued. The property is jointly acquired, everyone will receive the money. It is logical that in this case, the cost of purchase and construction will be 4 million rubles.

Important point. Amounts received as maternity capital or other government subsidies cannot be taken into account as deductible expenses.

Deduction for the cost of paying interest on loans (mortgages) for construction

If you have taken out a targeted loan for the construction of a residential building (this must be stated in the loan agreement), then you have the right to receive a deduction for the loan interest paid.

Example: Petrov A.V. took out a mortgage loan for the construction of a residential building. Petrov has the right to claim a deduction for both construction and mortgage interest costs.

You can read more about the deduction for loan interest in the section “Deduction for mortgage interest.”

Deduction when buying or building a house

You can receive a deduction when buying a house using the same algorithm as when buying an apartment. You read about this in the previous article. What if you bought a house under construction and you plan to finish it?

In this case, you are buying an unfinished construction project. Please note that this clarification must be reflected in the purchase and sale agreement. Otherwise, you will not receive a deduction for construction work.

Example.

You bought a plot of land with an unfinished house. The purchase and sale agreement states that the house is an unfinished construction project.

Only after construction is completed and you have an extract from the Unified State Register of Property Rights in your hands, contact the tax office for a deduction. The deduction will include the costs of purchasing the house and the costs of completing it.

Standardization of direct costs is another important nuance of construction

From the above, one significant conclusion can be drawn - during the construction process, accounting is carried out based on calculated indicators. In order for the final result to not differ much from the planned one, strict planning and cost regulation are necessary.

IMPORTANT! Rationing of costs in construction is carried out not only for accounting purposes. Construction is one of the most highly regulated industries, so setting and complying with standards is mandatory from both a technology and safety point of view, as well as several other parameters.

First of all, the contractor's direct costs accounted for in account 20 are subject to rationing. These include:

• cost of materials and structures used;
• wages of construction workers;
• depreciation of own construction equipment;
• rental of construction equipment;
• transportation and procurement costs related to the items listed above (for example, costs of moving equipment and machinery).

How standards are set in practice can be read here: “We approve standards for the write-off of building materials.”

Features of obtaining a deduction when purchasing a land plot

You cannot receive a deduction for the purchase of land. A land plot has two purposes: a plot for individual housing construction (IHC) or a personal subsidiary plot (LPH). The second relates to garden plots.

The right to deduction will appear if you buy land for the construction of a residential building, that is, with the intended purpose of individual housing construction. It is not enough to buy land and build a house, which according to documents is listed as an unfinished construction project. Such a house has the status of non-residential premises. Previously, for the tax authorities, having the status of “residential building” was a fundamental condition. For residential buildings the deduction was denied.

On January 1, 2021, a new law was issued - No. 217-FZ “On the conduct of gardening and vegetable gardening by citizens for their own needs and on amendments to certain legislative acts of the Russian Federation.” It states that buildings on garden and dacha plots registered before January 1, 2021 with the designation “residential” or “residential building” are considered residential buildings from that date. The tax will be returned only if the house was built with the right of registration (registration) and is registered with Rosreestr.

Deduction when buying a garden house

Don’t be confused, people live in a residential building all year round, while in a garden house they live when it’s time to plant potatoes. If you bought a summer cottage with a garden house that is not recognized as residential, the deduction will be denied. But if you have patience and transfer it to residential status, you will receive a deduction not only for the house, but also for the purchased land (Letter of the Federal Tax Service of Russia No. ED-4-3 / [email protected] dated 12/10/12).

From January 1, 2021 to March 1, 2021, summer residents and gardeners can re-register their real estate according to a simplified procedure (Federal Law dated August 2, 2019 No. 267-FZ).

The main thing is that the garden house meets the requirements of a residential one (clause 4 of the Government of the Russian Federation of January 28, 2006 No. 47 “On approval of the Regulations on the recognition of premises as residential premises...” (as amended on December 24, 2018). Namely, it is built from a solid foundation and is provided with the necessary communications: sewerage, heating, electricity.

Example 1.

In 2021, you built a house on a garden plot. In the Unified State Register of Real Estate the house is registered as “non-residential”. In summer you will enjoy spending time there with your family. From January 1, 2021, this house is officially considered a garden house. And if you want a deduction for it, then you need to re-register the purpose of the house as “residential”.

Example 2.

In 2009, you bought a plot of land with the purpose of individual housing construction. The house was built only in 2021, and then we received title documents. And we learned about the possibility of receiving a deduction in 2021. In 2021, you submit a declaration and claim a deduction for both the construction of a house and the acquired land.

Advantages and disadvantages of building a house from aerated concrete

In any construction project, the main thing is the wall material, the parameters and characteristics of which determine the size of the foundation and the design of the floor, the selection of insulation and finishing options. All this has an impact on the estimated cost of the house, which will be discussed here. Therefore, first we will consider which gas blocks are best to purchase for construction, and then we will deal with prices.

The cost of a gas block box will depend on several factors:

1. dimensions of the building and wall thickness;
2. block production technologies;
3. type of masonry mortar;
4. types of material used for reinforcement.

Everything is clear with the dimensions - but how does production technology affect the cost of construction?

• Products made from cellular concrete can gain strength in different conditions. With natural hardening (this method is called hydration), concrete takes 28 days to mature at room temperature +20 degrees. The higher the temperature, the shorter this period.
• Therefore, a method of synthetic hardening was invented, during which products made from slightly set concrete are sent to autoclaves. There, under the influence of hot steam and high pressure, the hardening process is reduced to half a day. But that’s not even the main thing.
• The bottom line is that at a temperature of +190 degrees and a pressure of 1.3 MPa, the lime present in the composition is converted into calcium hydrosilicate - a very durable mineral, due to which the concrete stone becomes more durable. Accordingly, blocks made using autoclave technology, even with the same composition and density, are 70, or even 100% stronger, and non-autoclave.
• For example, the compressive strength class of a non-autoclave block D500 according to GOST is a maximum of B1, or even B0.75. With such indicators, it is classified as thermal insulating concrete, from which load-bearing walls cannot be erected. During synthetic hardening, the same block can have both class B1 and B 2.5, which depends on the exposure time of the products in the autoclave.
• Many manufacturers, especially subsidiaries of famous European companies, have a strength class of D500 blocks of at least B 3.5, which allows the construction of two-story houses. Therefore, you should not be surprised that they are more expensive than products from other manufacturers, and even more so, more expensive than non-autoclave blocks - sometimes twice as much.
• In addition to excellent strength characteristics, autoclave hardening gives concrete stone other advantages. In particular, this is the almost complete absence of shrinkage, which does not allow the blocks to significantly change their geometry after drying. And minimal deviations in size make it possible to make thinner seams and save on masonry mortar.

Expert opinion Vitaly Kudryashov builder, aspiring author

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Important: The type of masonry mortar also significantly affects the cost of masonry. For blocks of low quality category, deviations in height, length and diagonal differences may be 5-6 mm. This forces seams to be made up to 10 mm thick, which entails significant consumption of glue. Since it is quite expensive, many people prefer to lay with cement-sand mortar, not realizing that they thereby impair the ability of the walls to resist the transfer of heat, which escapes through the seams.

Material characteristics

From everything said in the previous chapter, we can conclude that only autoclaved blocks should be used to build a house. And when purchasing them, you should look not only at the density, but also at the strength class, which must be indicated in the passport for the batch of products.

• There are blocks that have both high strength and, due to their low density, the lowest possible thermal conductivity coefficient. For example, YTONG or Bonolit blocks with a density of 400 kg/m³ have a strength class of B2.5.
• Such wall products, despite their low density, can be used to build the walls of a one-story house. For a house with an attic or second floor, it is better to take blocks of class B3.5, and depending on the manufacturer, there may be products of both D500 and D600 brands.
• For a three-story house, the strength of the blocks must correspond to class B5 (D600 or D700). The same option should be preferred for construction in an earthquake-prone area, or with increased loads on the masonry - for example, when installing heavy concrete floors or a suspended facade made of ceramic siding.

Expert opinion Vitaly Kudryashov builder, aspiring author

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Note: You should not unnecessarily choose high-density blocks for one or two-story houses, as this will deteriorate the thermal insulation qualities of the walls.

We offer a table of characteristics of high-quality gas blocks of category 1, from which the dependence of thermal conductivity on density is visible:

What expenses are included in the deduction?

Do not think that absolutely all costs of building a house are included in the deduction. The tax code only specifies expenses:

• for the development of design and estimate documentation;
• for the purchase of construction and finishing materials;
• for construction and finishing works;
• for connection to electricity, water supply, gas supply and sewerage networks.

Remember that if you bought a built house and remodeled it, you will not be able to claim a deduction for construction costs. For this purpose, the house must have the status of an unfinished construction project.

What is an estimate?

An estimate is a calculation of the cost of a house, a list of all the costs that may arise during construction. Therefore, it includes absolutely everything, from design work to even finishing in an already built house. Sometimes it also includes the costs of acquiring a site, documentary and legal support for construction.

Important! An estimate for building a house is a document that indicates the costs of building a specific structure. Even if it is built according to a standard design, costs may vary due to the terrain, the distance over which materials are transported and other nuances. Because every home is different, just like people, the value of a home can vary significantly despite using the same design.

Calculating the cost of a house

An estimate is always a document that reflects both the interests of the customer and the contractor. A kind of compromise between quality and safety on the one hand, and reasonable financial sufficiency on the other.

Actually, the answer to the question “how much does it cost to build a house” can be obtained in two ways:

• By choosing the best estimate on a competitive basis - the customer chooses the best prices for building a house.
• An item-by-item discussion of the estimate with the customer - here he can calculate the construction of the house taking into account specific wishes.

Another option is to adjust the estimate to the amount already specified initially. In this case, the estimate is a tool for optimal allocation of funds.

In many cases, primarily when calculating the cost of building a private house, the most successful option is an item-by-item discussion. Because it allows you to make changes to the estimate and ensures full compliance with customer requirements.

Selection on a competitive basis is, in essence, the choice of a particular project or contractor, especially for the construction of buildings according to standard designs.

Important! Calculating the cost of building a house requires knowledge of the specific site and the features of the technologies used by a specific company. Therefore, large construction companies have their own estimate departments, which are best tailored to the technologies and projects used by the company. They provide the most accurate estimates, focused directly on the work of their company. This is relevant when building turnkey houses - the price in this case will be determined as close as possible to the final version.

If the construction, first of all, is low-budget, is carried out by a company that does not have its own estimate department, it is preferable to leave the creation of estimates to specialist estimators. For example, contact large estimating departments that are available in design institutes.

This guarantees the competent preparation of this document, taking into account all the nuances. And, accordingly, maximum accuracy of cost accounting.

Drawing up estimates for construction

Creating an estimate includes the following steps:

• Development of all estimate documentation for the design solution chosen by the customer.
• Optimization of the estimate, especially if it is compiled by a third party.
• Coordination of the estimate with the customer.
• Coordination and clarification of estimates with expert organizations.

The more detailed the estimate and the more complete the research and calculations, the easier it is to approve it and follow it further.

Documents for registration of deduction

As soon as your home has become residential, you have every right to submit a 3-NDFL declaration to the tax office for a tax refund. As with the deduction for an apartment, the declaration is submitted after the end of the tax period (clause 7 of Article 220 of the Tax Code of the Russian Federation).

If the title documents for the house are received in 2021, then the right to deduction will appear in 2021. But you will be able to file a declaration only in 2021.

To apply for a deduction, prepare the following copies of documents:

• documents on ownership of the house and land (certificate or extract from the Unified State Register of Real Estate);
• contract for the sale and purchase of a house and land plot (if you are applying for a deduction for the plot);
• payment documents for the purchase of a house and land;
• payment documents for the purchase of a house, land, construction and finishing materials (bank statements, checks, receipts, acts on the purchase of materials, etc.);
• mortgage agreement and a certificate from the bank about the interest paid (if you are buying a house with a mortgage).

Of the originals, you will need a passport, a 2-NDFL certificate for the year the deduction was issued (given by the employer, or uploaded on the website nalog.ru) and a completed 3-NDFL declaration.

Cost of a finished aerated concrete house

However, in order for the house to be livable, it is also necessary to lay communications, install windows and doors, and also carry out interior decoration, the cost of which may be equal to all other costs. Here everything depends on the type and quality of the materials used.

Let's try to calculate these types of work, performed with the most common materials, and see how much our calculation will cost.

Interior decoration

To calculate the interior decoration, we took plaster with putty and wallpaper in the rooms, and tiles in the bathrooms. Laminate floors, suspended ceilings. Let's see how much such repairs will cost:

Calculation of windows and doors

For online calculation of opening fillings, the following parameters were set:

1. PVC windows 4-chamber – area 22 m²;
2. Metal entrance door Standard;
3. Interior doors made of MDF Standard, 5 pcs.

The result looks like this:

Calculation of communications

For this calculation, the calculator was given the following conditions:

• Electricity – full installation with electrical panel.
• Heating is water with a gas boiler.
• Water supply – with storage water heater.
• Water from a well 6 m deep and a caisson 0.8 m high.
• Sewerage - with wiring throughout the house and output to the septic tank. Single-chamber septic tank with 3 rings.

This is a standard set of communications that can be seen in any budget cottage. Let's calculate how much money it will take:

How to quickly and inexpensively issue a deduction

You can submit documents in person to the tax office, remotely through the taxpayer’s personal account, or apply for a deduction through your employer. No one will give you a guarantee that the tax office will accept your documents without problems, and no one will bother you for three months of a desk audit.

Repeatedly you will have to spend time and effort proving to the tax authorities the legality of including certain construction works as deductible expenses. You may have to wait more than three months for your tax refund. These are the harsh realities of the work of tax authorities. But everything is being resolved.

In less than 24 hours, the specialists of the Return.tax company will advise you on deductions, fill out a declaration, prepare and submit documents to the tax office. Minimal participation is required from you. The cost of filing a deduction for one calendar year under the “Standard” package is 1,690 rubles.

The Premium package offers full support for the verification from the moment of submission, resolution of controversial issues and until the receipt of money in your account. The cost of filing a deduction for one calendar year under the Premium package is 3,190 rubles.