Cottage tax for pensioners: do you have to pay for land and house?

The acquisition of land is a desired and long-awaited event for many people. Having a country house seems like a tempting solution to some. The fact is that sometimes people can afford to grow flowers, fruit and berry crops, fruits and vegetables only after retiring. It is at this moment that a person has more time that can be used for healthy physical labor.

If you have the opportunity to spend money on a holiday home, it would be foolish not to take advantage of all the benefits. But here the new owners face some obstacles. Is a holiday home for pensioners subject to tax? What changes have occurred in this matter in 2020?

Legal regulation

Legislative land tax is regulated by the Tax Code, as well as a number of federal laws and acts. Not long ago, there were big changes in tax legislation, which resulted in an increase in the tax on garden plots. This is due to the fact that until January 2020, the tax was calculated based on the inventory value of the site, and now on the cadastral value, which is quite close to the market price of the property. The inventory value is several times lower than the cadastral value since it is calculated more simply.

The taxation of objects that are included in Rosreestr and for which the cadastral value has been determined will be calculated in a new way. The law establishes a transition period until 2020.

Payment of land tax and property tax is made using receipts that a citizen receives at the tax office. These documents contain a detailed calculation scheme and you will no longer need to independently calculate the amount of tax.

How to check land tax debt? See here.

Who is entitled to benefits?

Benefits may be provided on the following grounds:

• the area established by law, which the site should not exceed;
• low-income citizens;
• persons under special social protection.

Tax relief can also be implemented by reducing the tax rate, reducing the amount of the taxable base, or complete exemption from paying tax. To clarify the current tax breaks in the region, you must contact the local branch of the Federal Tax Service.

This is important to know: How to register an abandoned summer cottage as a property

Dacha taxation

It should be noted that a dacha is a kind of complex that includes a plot of land, a house and outbuildings. Therefore, not one tax is paid, but several. Moreover, it will not be calculated as a single amount, but separately for each part of the complex.

Ownership of any property must be registered in the manner prescribed by law. In the case of a dacha plot and the dacha itself, this is Rosreestr of the Russian Federation.

Many people treat country houses lightly and do not register ownership. Including in order to avoid paying taxes. Since 2020, the state has been systematically fighting against such owners.

The law allows registration in a house built on plots intended for gardening activities. As a result, many huge cottages have been built on dacha plots, and tax officials plan to bring them out of the shadows.

It is worth saying that the building still needs to be registered. Many people of retirement age are afraid to do this, fearing that they will have to pay unaffordable sums. However, there is more harm from such a refusal to register. For example, if land is confiscated for government needs. No one will reimburse the cost of an unregistered house.

How to register a house is explained in the video. See detailed instructions:

If the dacha has not been registered, it is better to do it quickly. Otherwise, you will have to pay a fine and the Federal Tax Service may have the right to collect tax payments for 3 years.

The dacha tax consists of:

• Land tax. Once the land is registered, there is an obligation to pay fees for it. Even if there are no buildings there and the owner does not use it in any way. The amount of tax collection on a garden plot is calculated based on the cadastral value of the plot;
• Property. The country house will be assessed by a specialized body and the amount will be calculated based on its cadastral value;
• Sales tax. You will have to pay a tax on profits (NDFL). For a citizen of the Russian Federation – 13%, for a citizen of another state – 30%. The calculation is made based on the amount specified in the contract.

It should be noted that starting from 2020, a program is underway to change the procedure for calculating tax payments. Until this time, the amount of the fee was calculated based on the inventory value of the dacha. Since 2015, the tax fee has been calculated based on the cadastral value of the property, which has led to an increase in taxes .

Payment calculation: cadastral value x interest rate. This rate is set by local authorities. The Federal Law only sets the upper ceiling. It will change annually. Payment is made on the basis of a notice, but for some time now the Federal Tax Service has not sent out such papers. It is better to visit the service office yourself and take a printout.

In the picture you can see the tax rates for residential premises in force in Russia:

Important: if the cadastral value of your house seems too high, you can appeal it in court. You will have to order your own assessment and present it in court. If the court takes the plaintiff’s side, then the Federal Tax Service of the Russian Federation will be obliged to calculate the tax payment differently.

Land tax on dacha plot

The amount of land tax on a dacha plot in 2020 largely depends on its price and location. Owners do not have the right to calculate the tax themselves. They make payments using receipts received from the tax office.

Tax department employees themselves determine what funds will need to be paid to the citizen in accordance with the cadastral value of the property. A notification with a requirement to pay the tax must be sent to the citizen by mail no later than October 1. In this case, there will be two months left to pay the state fee.

If a person knows the cadastral value of his land plot, as well as the tax rate in the constituent entity of the Russian Federation in which he lives, he can independently calculate the amount of money that he will have to spend on paying the tax.

In order to find the cadastral value, you need to look at the cadastral map or passport, or find an extract from the Unified State Register of Real Estate.

Depending on the subject of the Russian Federation, different rates are applied to the land plot, which can be set by the administrative bodies of municipalities. The Tax Code only specifies the upper limit of the rate. It is 0.3% for agricultural lands and personal subsidiary plots and 1.5% for lands of other categories. Land tax is calculated once a year.

For pensioners

Calculation of land tax on a dacha plot for pensioners is carried out on a general basis. They do not qualify for tax breaks under federal law. However, local authorities have the right to establish benefits for people of retirement age independently.

Using this opportunity, regional authorities mainly formulate provisions on tax breaks for pensioners. The main benefit is the opportunity to pay half the tax.

If a citizen is one of the many owners of a land plot, the tax will be calculated according to his share.

For invalids

The legislation provides for the provision of benefits to people with disabilities, but not all groups. Tax breaks are provided to persons with disabilities of groups 1 and 2, as well as persons with disabilities from armed conflicts and the Great Patriotic War.

The latter receive slightly smaller benefits. Tax breaks for people with disabilities are provided at the federal level and decisions of local authorities do not play a special role here.

For labor veterans

Federal laws do not provide benefits for this category of citizens. However, the authorities of the constituent entities of Russia often establish laws that allow such categories of citizens to pay land tax in an incomplete amount.

The citizen will need to confirm his status with an official document. In this case, local authorities are obliged to include the person on the list for a reduction in tax payment.

Land tax benefits for pensioners in 2020

For pensioners who are not engaged in work, a plot of land is a hobby and a job that brings additional income and makes life easier in every way.
The tax on your own land plot is intended to “lighten” the wallets of pensioners, so they are interested in providing benefits for this type of taxation. It is considered local and in 2018 is mandatory for payment in the territories of all municipalities.

Land tax is paid by enterprises and individuals who have their own privatized land plots with the right to use them indefinitely. All land use norms are prescribed in the Land Code of the Russian Federation.

By law, all land plots acquired in accordance with legal requirements can be considered the property of citizens. If the land is leased, then the tenants do not have to pay land tax.

The amount of land tax is established based on its cadastral value. Tax rates are set at 0.3 to 1.5% of its value, depending on who owns the site: partnership, owner, enterprise, etc. Municipalities can set their own rates, but they should not be higher than the norms prescribed by law.

How to pay?

To pay the tax, a citizen will need to personally contact the tax office or send his authorized representative there. Payment can also be made electronically using Sberbank online, the State Services portal or directly on the website of the Federal Tax Service.

To transfer funds to pay off tax payments, you can also use a mobile application or which will automatically transfer funds from your mobile phone account or bank card each time.

Are there any personal tax benefits for individuals? Information here.

How to calculate land tax? Details in this article.

Calculation procedure

This is also an extremely important point that you need to try to take into account. The starting bid amount depends entirely on the region. In different cities, the size of the tax deduction when purchasing a summer house in 2020 may vary significantly. To calculate the amount of tax, you need to perform a simple action: multiply the regional rate by the cadastral value. This is approximately the amount you should expect. To clarify the information, you can contact the tax authority directly to clarify the situation as much as possible.

Video about land tax

• Due to frequent changes in legislation, information sometimes becomes outdated faster than we can update it on the website.
• All cases are very individual and depend on many factors. Basic information does not guarantee a solution to your specific problems.

This is important to know: Norms and rules for placing buildings on a summer cottage according to the law in 2020

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Possible nuances in practice

All over the country, inspections of land plots are regularly carried out in order to control and find out whether they are being used for their intended purpose or are standing idle.

The owner can be fined if the land is intended for the construction of a residential building, but the owner decided to plant a vegetable garden instead of building it. And vice versa. The fine is assessed after 3 years, which are allotted for a certain type of work.

Each land plot has the status:

1. Lands of populated areas - dacha construction, farming, individual housing construction are allowed.
2. Agricultural land - gardening, farming, and summer cottage construction are allowed.

If you do not register ownership of the new building, it will be impossible to sell or donate the house and land. At the same time, no property means no tax. This issue has its pros and cons.

But current legislation does not oblige a citizen to register a house. For lack of registration, there is no provision for administrative liability, penalties, and no time frame within which a citizen is required to register a new building. Many people live in unregistered buildings and save significantly on taxes, this is certainly a profitable strategy - but risky.

Fixed tax deduction from January 1, 2019 for pensioners

Based on the adopted Federal Law No. 436-FZ of December 28, 2017, a new land tax benefit for pensioners has been introduced. They are entitled to a tax deduction. Its size is determined as the cadastral value of 6 acres. This means that if an elderly person’s summer cottage is less than 6 square meters. m, then he should not pay for it. Previously, only federal beneficiaries enjoyed this prerogative:

• Heroes of Russia (USSR);
• full holders of the Order of Glory;
• citizens who have been assigned disability group 1 or 2;
• veterans and disabled combat veterans;
• citizens directly involved in nuclear weapons testing and liquidation of nuclear accidents;
• citizens who became disabled as a result of nuclear tests.
• disabled since childhood;
• persons exposed to radiation;
• persons who received or suffered radiation sickness;

Please note that the tax deduction is provided only for one plot of land. It does not matter the purpose of its use, the amount of income of the owner or the location of the land. Regional legislation may stipulate additional benefits for other categories of older people, for example:

• recipients of survivor's pensions;
• working pensioners;
• upon early retirement due to length of service.

How are land benefits processed?

All benefits are divided into 3 types:

1. Complete exemption from payment.
2. Reducing the amount from which payments are calculated by 10,000 rubles.
3. Benefits established at municipal levels. This type of privilege for pensioners is established based on local conditions.

After accepting the documents, the inspection official checks their authenticity and reliability. Next, the tax inspectorate makes a decision on the choice of one of the types of benefits for each applicant, and notifies him of this.

From the moment the decision is made, the law regarding the beneficiary begins to apply - payments are recalculated in accordance with the benefit received. Recalculation is made based on the period when the right to the benefit begins.

Procedure and rules for calculating land tax on a dacha plot

The amount payable can be calculated using the following formula:

ZN = NB × NS × KPV × DPS – L, where:

• ZN – the amount of land tax, expressed in rubles;
• NB – tax base, defined as the cadastral value of the plot as of January 1 of the billing period. The value is determined by the tax authorities from the data of the state real estate cadastre (Rosreestr).
• NS – tax rate. Determined by the regulatory legal acts of the region.
• CPV – coefficient of the period of ownership of a plot, determined in shares depending on the number of months (maximum value – 1).
• DPS – share in ownership. If the pensioner is the sole owner, the value is taken as 1. If the plot is owned by several persons, the tax is calculated for each person individually depending on the share of ownership.
• L – land tax benefits for pensioners, determined by regional legislation.

Tax Rate Limits

Please note that the interest rate is determined by local authorities. However, it cannot exceed the maximum values ​​established by Art. 394 Tax Code of the Russian Federation:

Sales income tax

If a pensioner buys a dacha, then he does not have an obligation to pay the fee, since as a result of such a transaction he does not receive income. If a transaction took place between the parties to alienate the dacha through a gift agreement and the parties are not close relatives, then the donee will have to pay a tax of 13%.

In this case, there are no benefits for pensioners.

Should pensioners pay tax on the sale of their dacha? Yes, they should. The exceptions are the following cases:

• The country house and plot of six acres have been owned by the pensioner for more than five years;
• If the dacha was received by inheritance or through the conclusion of a gift agreement, then this period of ownership is reduced to three years.

Important: all these conditions apply to property that was acquired after January 1, 2020.

Watch the report where they talk about changes in 2020 regarding the dacha tax for pensioners:

Benefits for summer cottages for pensioners in Moscow and the Moscow region

Land tax for pensioners in the capital and region is charged to all owners of plots. Only some Moscow residents are exempt from paying land tax on an amount not exceeding 1 million rubles:

• disabled since childhood;
• persons with disability group 1 or 2;
• disabled people and combat veterans (including the Great Patriotic War);
• parents with many children (adoptive parents);
• persons injured as a result of the accident at the Chernobyl nuclear power plant.

For pensioners - owners of summer cottages living in the Moscow region, certain benefits are also provided. The size of the preference and categories of recipients are determined at the municipal level, for example:

This is important to know: Fine for an unregistered house on a summer cottage

Examples of additional tax benefits in the regions

Let's consider several settlements near the Moscow region as an example:

1. Low-income pensioners are completely exempt from spending by decision of the Ivanteevka city administration. In the case of single citizens of retirement age, a 50% discount applies.
2. The Pavlovo Posad district has established different rules. Lonely old people do not have to pay taxes at all.
3. If the size of the plot is up to 15 acres, then pensioners have access to a 50% discount in the case of the municipality of the city of Mytishchi.
4. In Korolev they give a discount on plots of up to 12 acres.
5. All non-working pensioners are exempt from fees in Odintsovo.

Is land tax charged to pensioners for their summer cottage plot?

About which objects the accrual is made and who must pay is written in Chapter 31 of the Tax Code. Let's look at the main provisions regarding land tax for retired summer residents:

1. A garden or dacha plot in itself is an object of taxation if a person possesses it with the following rights:

• property;
• permanent use;
• lifelong inheritable ownership.

In other words, if there are no title documents issued to you for the site (extracts from the Unified State Register, decisions of the administration, etc.), no accruals are made. Also, land is not a taxable object in cases of lease and gratuitous use.

1. Pensioners do not have to pay land tax for a 600 sq.m. dacha plot. m (clause 8, clause 5, article 391 of the Tax Code). For larger areas, only the remaining acres are taken into account. If there are two or more plots, the benefit applies to only one of them. The deduction is valid starting from the 2020 period.

Example 1

To receive the benefit, a pensioner must contact the Federal Tax Service with an application and supporting documents (see Letter of the Federal Tax Service dated September 10, 2018 No. BS-2-21/ [email protected] ). If a person has previously enjoyed benefits and the Federal Tax Service knows about his pensioner status, there is no need to provide anything.

You can see what benefits are valid in the territory of the municipality where your site is located in the service on the Federal Tax Service website.

Example 2

According to the information presented on the Federal Tax Service website, pensioners here are exempt from the obligation to pay tax.

How to pay taxes on a dacha in SNT?

Documents are proof that real estate belongs to someone. To receive them, you need to register this very right. After registration, a document is issued. This right is formalized somewhat differently if the house is located in a non-profit partnership. What to do in this case, should pensioners pay income tax?

Houses located on the territory of SNT are not officially registered. They are simply part of a large dacha cooperative. There is no information about them in the tax office; demands for payment of taxes do not come to them.

All contributions are collected by the Board of the dacha partnership. Such organizations pay land tax for the entire piece of land on which the SNT is located. Payments received from summer residents are transferred to organizations to which the partnership is obliged to pay certain amounts.

Should a pensioner pay tax on a country house?

If a house is built on a garden plot and outbuildings are located, they are no longer subject to land tax, but to property tax. It is regulated by Ch. 32 NK. Let's look at the main provisions regarding dacha property tax for pensioners:

1. According to Article 401 of the Tax Code, houses and residential buildings on dacha and garden plots are considered residential buildings and are subject to taxation. In this case, only those citizens who own a house by right of ownership are recognized as payers.

Example 3

1. Article 407 of the Tax Code states that pensioners are exempt from paying tax for each of the objects:

• House;
• household structure;
• garage.

Thus, pensioners do not need to pay tax on a dacha (house) if they own only one such object.

Example 4

Important!

If the tax amount is calculated based on the cadastral value, a deduction in the amount of 50 square meters is applied to country houses. m. (Clause 5 of Article 403 of the Tax Code).

1. As in the case of land, with regard to property tax, local authorities have the right to expand the number and scope of benefits provided. The information is compiled into a single directory on the Federal Tax Service website, where you can select the municipality and year of interest.

Property tax benefits for pensioners

A fairly common question is: “Why do some pensioners pay property taxes and others do not?”

According to the current tax legislation, absolutely all pensioners are exempt from property tax. This includes country houses and buildings, garages, apartments and other real estate. This rule applies to both old-age pensioners and military pensioners.

But to receive the benefit, you must notify the tax service of its availability. The benefit is NOT provided automatically. In order to obtain exemption from the tax burden, you need to come to the Federal Tax Service at your place of residence and bring with you a package of supporting documents:

• passport;
• documents on real estate owned;
• pension certificate or certificate from the Pension Fund of Russia.

The tax office will also have to fill out an application for exemption from property tax in relation to country houses. After this, absolutely all real estate of the pensioner will cease to be subject to taxation.

If you do not write an application in a timely manner, the Federal Tax Service will continue to send payment receipts to the pensioner, and if they are not paid on time, charge penalties.

It is worth noting that pensioners have the right to return the property tax contributions paid for the last 3 years. They will be considered an overpayment. Unfortunately, the funds that the pensioner paid more than 3 years ago cannot be returned, because... the statute of limitations has expired on them.

To begin the refund procedure, the pensioner must first obtain from his bank a statement with the account details of the Savings Book or bank card. Internet banking users can download a document with details online.

Together with a tax specialist, the pensioner fills out an application for a refund to the account indicated in the statement. It will be considered for no more than 60 days, after which the pensioner will receive the overpayment of property taxes back.

Refund 3-NDFL

Citizens who purchase housing or land for individual housing construction have the right to receive a tax deduction.

If the documents indicate that the plot is provided for dacha farming, then a return upon purchase is not possible.

How to get

The algorithm for obtaining a deduction is quite simple. Before the end of the year in which the property was acquired, a citizen applies to the tax authority at the place where personal income tax is paid.

For this purpose, a tax return is submitted. The following documents are attached to it:

• certificate 2-NDFL for the reporting period;
• documents confirming the costs of purchasing the property (purchase and sale agreement, payment order);
• an extract from the Unified State Register of Real Estate confirming ownership of the property.

After this, the amount of income on which a person pays personal income tax each month will be reduced.

Cadastral value for dacha taxes

According to the current rules, the basis for calculating dacha taxes is the cadastral value of objects. It is close in value to the market value and is established by specialized appraisers. The cadastral value of a country house and other objects is entered into a unified real estate cadastre. Information about the price of your plot or house can be found by making a corresponding request to the departments of Rosreestr. In addition, you can use the online service on its website to obtain the necessary information. In order to use this service, you need to know the object number (cadastral).