Apartment Purchase Property Tax Deduction

Property tax deduction for buying an apartment. Major financial advantage in buying a home with a mortgage, is the ability to get a tax deduction. Buying an apartment or home mortgage entails a significant and recurring costs on repayment of loan and interest thereon. Therefore, the state has envisaged tax relief for citizens who buy homes. According to the Tax Code, the borrower has a mortgage is entitled to a property tax deduction (once) in the amounts spent on construction or purchase of flats (houses) on the territory of the Russian Federation. The deduction is granted, provided that the citizen has the income, taxable income tax at a rate of 13%. In this case, the tax deduction includes the amount spent to purchase (construction), and the amount of interest on a mortgage. When building or buying a house in a tax deduction can include: * the costs of developing design and estimate documentation; * acquisition costs of construction and finishing materials * cost of purchasing a dwelling house, including the unfinished * costs associated with the work or services for construction and decoration, the cost of connecting to the networks or the creation of autonomous sources of electricity -, water, gas supply and sanitation. When buying an apartment in the tax deduction may include: * Acquisition apartment or the rights to an apartment in a newly built house * acquisition of finishing materials * Work associated with flat finish. For those who buy an apartment on the mortgage, the amount of tax deduction is not limited to 1 million as stated law, if the apartment was bought on credit, with the amount allocated for the repayment of interest on trust loans (loans) received from credit institutions and other organizations of the Russian Federation, and actually spent on new construction or acquisition of the Russian Federation house, apartment or share (shares) in them, provided a similar benefit, with no limit on the amount of tax deduction.