I bought an apartment in a new building directly from the developer. I heard there are some restrictions on the deduction when buying from legal entities. How does this work in my case exactly and what documents will I need?
You can get the deduction, but with a catch: if the builder is a legal entity, the deduction is calculated only on the amount that exceeds the tax base for income tax (basically, their profit from the sale). In practice, this often means the deduction will be smaller than if you bought from an individual. To file, you'll need the acceptance certificate, the purchase agreement, payment documents, and a certificate from the builder stating the apartment's cost for tax purposes - this last one is especially important since it's what confirms the tax base.
It's a bit more complicated than it might seem at first glance. Yes, you're entitled to the deduction, but there's an important catch: when you buy from a developer as a legal entity, the deduction is calculated not on the full apartment price, but only on the part that exceeds the developer's tax base (their profit). In practice, this means that if the developer is selling the apartment at cost or with minimal markup, your deduction could be much less than you're expecting. To file, collect the purchase agreement, the act of transfer, payment documents, and an extract from the property rights registry - that should be enough, but before you submit it to the tax office, it's better to clarify the calculation with them or with an accountant specifically for your amount.
Actually, getting a deduction when buying from a legal entity developer is simpler than it sounds :) You can get it, and there are no special restrictions - the main thing is to properly prepare the documents. The deduction is calculated based on the full cost of the apartment, just like when buying on the secondary market.
For the declaration submission, you'll need: the apartment acceptance and transfer act, payment documents (a certificate from the developer about the amount, account statements, receipts), an extract from the Unified State Register of Real Estate about the registration of ownership rights, and a copy of your passport. If you took out a mortgage - add the contract and a certificate about the interest. You submit all this together with the tax declaration to the Federal Tax Service either through your personal account or in person.
You don't need to rush with the deadline - the law allows you to submit a declaration within several years after the purchase, so there's no real hurry :) The main thing is to collect all the originals and copies in advance, so you don't have to dig through the developer's archives later.
Don't listen to people saying there are no limits - there are, and they're real. When buying from a developer that's a legal entity, the deduction isn't calculated on the full apartment price, but only on the amount that exceeds the developer's tax base for income tax purposes (their profit from the sale). So if a developer sold an apartment for 5 million, and their cost was 4 million, the deduction is calculated only on the 1 million difference.
Practical tip: when filing documents with the tax authority, ask the developer for a certificate stating their tax base and profit amount - this will speed things up and avoid extra questions during the audit. Gather all acceptance-and-transfer acts, payment documents, and a property registry extract; the tax authority can request the rest themselves, but the more you prepare upfront, the fewer problems you'll run into later.
One thing nobody mentioned here - be careful about the deadline for filing your tax return. If you're buying from a developer that's a legal entity, you need to claim the deduction with the tax office in the year you received the act of acceptance and transfer of the apartment, not in the year you made the payment. The documents are standard: the contract with the developer, payment orders, the transfer act, the certificate of ownership, and a 3-NDFL tax return form.
The main thing is to definitely get a consultation at the tax office specifically for your situation, because there really are nuances with developers as legal entities. In short: you're entitled to the deduction, but it's calculated not from the full contract amount, but from the part that exceeds the developer's tax base (essentially their profit). In practice, this means your deduction could be significantly less than expected, especially if the apartment was bought at market price without any discounts. To file, gather the purchase agreement, transfer act, payment documents, and a certificate from the developer about their tax base - that last document is often overlooked, but it's critical for calculating it correctly.
Log into answer.
