Property tax benefits for pensioners

Benefits for pensioners when paying property taxes

Benefits for pensioners when paying real estate taxes are provided for in subsection. 10 p. 1 art. 407 Tax Code of the Russian Federation. According to this rule, the following are entitled to benefits:

pensioners receiving pensions in accordance with pension legislation;
men aged 60 years and older and women over 55 years old, who, according to the legislation of the Russian Federation, are paid lifelong maintenance.

What is meant by the phrase “pension legislation”? Can only Russian pensioners apply for such a benefit, or do the number of property beneficiaries also include foreign citizens, as well as stateless persons, who are recognized as having the right to a pension on the same basis as Russians?

In the letter of the Federal Tax Service of Russia dated January 09, 2017 No. BS-4-21/ [email protected] this issue was resolved as follows. In the absence of a definition of the term “pension legislation” in the Tax Code of the Russian Federation, the application of property tax benefits does not depend on the basis on which the pension is assigned - under the legislation of the Russian Federation or another state.

Can foreign pensioners count on property tax benefits? The answer to this question is in ConsultantPlus. Get free trial access to the system and proceed to information from the Federal Tax Service.

Thus, both Russian pensioners and pensioners - foreign citizens who own real estate on the territory of the Russian Federation have the right to use the property tax benefit.

Property tax for pensioners

private residential building;
apartments, rooms in MKD;
garages, parking and parking spaces;
a collection of buildings inextricably linked to each other in the form of a single real estate complex;
unfinished;
other buildings, structures and structures recognized as real estate and registered in the name of a citizen in the Unified State Register of Real Estate, including if they are located on land plots of private household plots, private housing construction, and gardening partnerships.

Since the tax is paid on the basis of a notification from the Federal Tax Service, and tax authorities do not automatically receive information about the receipt of preferential status by taxpayers, even if the right to a benefit arises, a pensioner may receive a tax notice for property tax. In this case, you must contact the Federal Tax Service to report an erroneous tax calculation and apply for a benefit.

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For example, if a pensioner rents an apartment in another city and cannot come every month for cash, so he is worried that the Tax Service will pay attention to him, he can ask one of his close relatives living near the rented apartment to receive payment and transfer this amount from your card to the card of the pensioner renting the apartment.

Federal Tax Service employees by telephone, by mail or personal visit invite elderly pension recipients to visit the Tax Office to comply with some formalities. You are asked to have a passport with you, as well as a document confirming the amount of the accrued pension.

Exception: if the apartment was purchased in the year of retirement, you will have to wait until the end of the tax period. For example, the property was purchased in January 2021. The pension has been assigned since July 2021. Refunds can be issued in 2022 for 2021, 2021, 2021, 2021.

In 2012, the Tax Code of the Russian Federation was supplemented with a new norm. According to paragraph 10 of Art. 220, a pensioner has the right to transfer the balance of property tax deductions “to previous tax periods, but not more than three, immediately preceding the tax period in which the transferred balance of property tax deductions was formed.”

Houses, apartments, dachas, garages: what property of a pensioner is not subject to property tax?

Types of property for which a pensioner is not required to pay property tax are listed in paragraph 4 of Art. 407 of the Tax Code of the Russian Federation.

They are clearly presented in the figure below:

Thus, the legislation provides not only benefits for apartments for pensioners, but also exemption from property tax on other types of real estate.

To take advantage of the property benefit, the pensioner must be the owner of the property.

Do pensioners pay property taxes?

If you do not notify the Federal Tax Service about the selected taxation object to receive the benefit, the Federal Tax Service employees will choose it themselves. They will study information about all the real estate in your ownership and calculate the amount of tax for each property, and then exempt you from paying the largest amount. That is, if your goal is to save, you may not contact the Federal Tax Service with an additional statement: “tax benefits are provided in relation to one taxable item each type with the maximum calculated amount of tax.” This is stated in the law.

You may be interested in:: When to Renew a Transport Card for a Pensioner Card

If you write an application, it will be automatically renewed every year. If you write it after retirement, you can receive a statement for the last 3 years. For example, if you retired in 2013 and filed an application in 2021, the tax will be recalculated for 2021, 2021 and 2021.

Expensive real estate: at what cost limit is a pensioner not entitled to benefits?

This threshold is 300 million rubles. Real estate with a cadastral value above this limit is not eligible for the property benefit. A pensioner who owns such real estate is required to pay tax.

But that’s not all - a pensioner has no benefits if:

the property he owns is used for commercial purposes;
he owns more than one property: for example, two houses, three garages or five apartments - the benefit can only be used for one property for each type of real estate.

Such restrictions are provided by law to suppress attempts to save on property taxes by transferring ownership of property from individuals who are not entitled to benefits to pensioners.

A pensioner has several real estate properties: how to use the benefit?

Let's look at examples of how to determine in practice which property a pensioner should not pay tax on.

Example 1

In October 2021, Boris Petrovich Bogdanov retired, received a pension certificate, and was assigned a pension in accordance with pension legislation.

Bogdanov B.P. owns several real estate properties:

apartment with an area of 89 sq. m;
residential building with an area of 122 sq. m;
garage in the garage cooperative "Udarnik";
garden house in SNT "Cherry" with an area of 18 sq. m.

From the moment Bogdanov B.P. retires, all of the above real estate objects are exempt from property tax.

Example 2

Karavaeva Tamara Nikolaevna has been retired since 2021. She owned one piece of real estate - the apartment in which she lives. In September 2021 (after receiving an inheritance), T.N. Karavaeva purchased another apartment and a house in the village.

Now the pensioner owns two apartments and one residential building. Only one apartment and house in the village are eligible for the benefit. For the second apartment you will need to pay property tax, calculated taking into account the deduction.

In order to select from several objects the one for which the benefit is needed, the pensioner must submit a notification to the Federal Tax Service using the form from the Federal Tax Service order dated July 13, 2015 No. ММВ-7-11/ [email protected] If this is not done, the benefit will be provided for the object with the maximum amount tax

Should a pensioner pay property tax?

The pension is paid after the potential recipient reaches the age threshold, which is 55 years for women and 60 years for men. In addition to entering a well-deserved retirement under normal conditions, there is a category of citizens who receive an old-age pension earlier than the period specified by law - those who work underground, rural workers and those employed in production with hazardous conditions.

The application of tax legislation in terms of determining the conditions for property collection is the responsibility of the regional authorities. Self-government bodies are free to set the interest rate at their own discretion and determine who is eligible for benefits.

How to apply for a benefit: are supporting documents required?

So, how to apply for a tax benefit for pensioners on real estate? To do this, you should submit an application for a benefit to the tax authority (clause 6 of Article 407 of the Tax Code of the Russian Federation). The application form (KND 1150063) is given in Appendix No. 1 to the order of the Federal Tax Service of Russia dated November 14, 2017 No. MMV-7-21 / [email protected] With its help, you can inform controllers about your right to receive benefits for three types of taxes at once: property , transport and land. An application is filled out according to the algorithm described in Appendix No. 2 to the Federal Tax Service order No. MMV-7-21/ [email protected]

It is required to fill out only one copy of the application in any suitable way (clause 5 of the Procedure for filling out the application, approved by order of the Federal Tax Service No. ММВ-7-21/ [email protected] ):

handwritten (print the form and fill it out by hand);
on a computer (fill out the form using software that allows you to print an application with a two-dimensional barcode);
electronic (through the taxpayer’s personal account).

The applicant has the right to attach documents confirming the right to the benefit. If documents are not attached to the application, the tax authorities themselves request the necessary information from the authorities, organizations, and officials who have this information. If, at the request of the tax authority, the documents are not received, the controllers inform the pensioner about this and about the need to provide documents confirming the right to the benefit (see also letter of the Federal Tax Service of Russia dated October 12, 2017 No. BS-4-21 / [email protected] ).

If you do not submit an application, tax authorities will provide a benefit based on the information they have. It does not matter at what level the benefit is provided - federal or municipal. This rule was introduced by law No. 63-FZ dated April 15, 2019 and applies to legal relations from the tax period of 2021 (see also letter of the Federal Tax Service dated June 25, 2019 No. BS-4-21 / [email protected] ).

Are there tax benefits for pensioners when selling and buying an apartment?

The tax legislation does not provide for special tax benefits for pensioners when selling an apartment.

As with all real estate sellers, the payment of personal income tax on income received from the sale of an apartment depends on the time of ownership.

A pensioner has the right not to pay tax on income from the sale of an apartment if he owned it:

more than 5 years (for real estate acquired from 2021);
more than 3 years (if the pensioner became the owner of the property before 2021).

In addition, the minimum period allowed for tax exemption of 3 years is provided for apartments that the pensioner received:

after privatization;
under an annuity agreement with lifetime maintenance of a dependent;
after registering an inheritance or deed of gift from close relatives.

If the deadlines are shorter than specified, personal income tax will have to be paid. But it is possible to reduce its amount using a tax deduction.

Find out more about deductions when selling an apartment by following the link.

Just as there are no benefits when pensioners sell an apartment, tax legislation also does not provide for special benefits for pensioners when buying an apartment. But there is a right to a tax deduction.

By what rules are pensioners given a deduction when buying an apartment, see this material.

Deductions for the purchase and sale of an apartment are not possible for all pensioners, but only for those who legally receive income taxed at a rate of 13%.

How does raising the retirement age affect property benefits?

Due to the increase in the retirement age from January 1, 2019, there is no need to worry about property benefits. Pensioners still retain their right not to pay property taxes under the same conditions as before.

For pre-retirees (women over 55 years of age and men over 60 years of age), legislators have provided for the possibility of using property tax benefits provided for pensioners. But this opportunity remains only for a transition period (until 2028). As a result, men born in 1968 and women born in 1973 will be able to be released from the obligation to pay property tax only upon reaching the new retirement age limits (65 and 60 years, respectively).

We will tell you more about pension innovations here.

Why did they send property taxes to a pensioner?

To apply for an old-age pension for Russian citizens, the following standards are established: women - upon reaching 55 years of age, men - 60 years of age. The minimum insurance period at which this type of pension is assigned is 5 years.

The groups of persons listed above do not have to pay tax on any real estate, which includes apartments, houses, dachas, and garages. Therefore, if a pensioner has received a notice of the need to pay tax, he does not need to panic; this is most likely a technical error. [1]

10 Jun 2021 urisgkmo 67
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Results

Pensioners can enjoy property tax benefits from the moment the pension is assigned. The benefit is assigned at the request of the pensioner, and if it is not submitted, according to the information available to the tax authorities. There are no special benefits for pensioners when buying or selling real estate, but they have the right to receive tax deductions if they have income taxed at a rate of 13%. In connection with the increase in the retirement age, a transition period is provided until 2028, during which pre-retirees are exempt from property tax after they reach the age of 55 years for women and 60 years for men.

Sources:

Tax Code of the Russian Federation
Federal Law of April 15, 2019 No. 63-FZ
Order of the Federal Tax Service of Russia dated November 14, 2017 No. ММВ-7-21/ [email protected]
Order of the Federal Tax Service of Russia dated July 13, 2015 No. ММВ-7-11/ [email protected]
Letter of the Federal Tax Service of Russia dated June 25, 2019 No. BS-4-21/ [email protected]
Letter of the Federal Tax Service of Russia dated October 12, 2017 No. BS-4-21/ [email protected]

You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

Features of the bill adopted in 2021

According to Art.
401 of the Tax Code of the Russian Federation, all structures are real estate if they are firmly connected to the land. However, their movement is impossible without serious damage to the structure. They must have an independent economic purpose and act separately in civil circulation. Thus, the barn and bathhouse can be transferred to the tenant separately. As a result, these structures are recognized as real estate for which taxes must be paid. If a person is both disabled and retired, he does not need to pay property tax on a building of any purpose and of any size. The building can be for both residential and non-residential purposes. As a result, such a person has the opportunity not to pay tax for an outbuilding with an area of up to 50 square meters. m., located in a gardening partnership.

If the property is not registered in the cadastral register, from 2019 a double land tax will be imposed on it.