LETTER OF THE FEDERAL TAX SERVICE OF THE RUSSIAN FEDERATION

of August 29, 2013 No. BS-4-11/15716

About procedure for provision of the property tax deduction

The Federal Tax Service concerning receipt of the property tax deduction by physical person based on the provisional agreement of purchase and sale and the delivery-acceptance certificate of the apartment if the property right to the apartment is not drawn up, reports the following.

According to the subitem 2 of Item 1 of article 220 of the Tax Code of the Russian Federation (further - the Code) in case of determination of the size of tax base the taxpayer has the right to the property tax deduction in the amount of the expenses which are actually made by the taxpayer, but no more than 2 000 000 rub, in particular, to acquisition in the territory of the Russian Federation of the apartment, the room or share (shares) in them.

The specified tax deduction is provided based on the written application of the taxpayer, and also the payment documents processed in accordance with the established procedure and confirming the fact of payment of money by it (receipts to receipt orders, bank statements about money transfer from the account of the buyer for the account of the seller, sales and cash register receipts, acts of purchase of materials at physical persons with indication of in them address and passport data of the seller and other documents).

Besides, according to paragraph 22 of the subitem 2 of Item 1 of article 220 of the Code the document necessary for confirmation of the right to the property tax deduction in case of acquisition of the apartment according to the purchase and sale agreement, is the document confirming the property right to the apartment which the certificate on state registration of the property right is.

Thus, the Code connects provision of the property tax deduction not only with the fact of implementation by the taxpayer of expenses, but also with acquisition of housing in property of the taxpayer, that is with availability of the document on registration of the property right of the taxpayer to the ready apartment.

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