Individual entrepreneur (IP). Features of obtaining a tax deduction for an entrepreneur What to do as an individual entrepreneur

Tax deductions for individual entrepreneurs in 2019 are amounts by which the tax base can be reduced. This is one of the ways to reduce the tax burden for an entrepreneur.

A deduction is a way, an opportunity to reduce the financial burden on an entrepreneur, which means that the topic of tax deductions for individual entrepreneurs is always relevant. In letter No. 03-04-03/66945 dated November 19, 2015, the Ministry of Finance even clarified whether an individual entrepreneur can receive a tax deduction. According to the ministry's response, individual entrepreneurs, like all individuals, have the right to tax benefits, including deductions, if they receive income subject to a 13% rate. And the right to deduction has nothing to do with the taxation system chosen by the individual entrepreneur. This thesis needs clarification.

Conditions for an entrepreneur to obtain the right to a tax deduction

To receive a tax deduction, it is necessary that the entrepreneur receive income subject to 13% personal income tax as an individual. Individual entrepreneurs operating under the following taxation systems are not required to pay personal income tax:

UTII;
patent SN.

Consequently, they cannot receive a tax deduction for their business activities. Simplified taxation regimes make it possible not to pay established types of taxes, including personal income tax (individual entrepreneurs are not exempt from insurance contributions in this case). Thus, there is no basis or basis for filing a deduction. When applying these taxation systems, a deduction is provided only when a citizen combines entrepreneurship and activity as an employee, for whom the employer pays personal income tax.

Property tax deduction

There is no dilemma as to whether an individual entrepreneur can receive a property deduction if he acquired property for personal purposes or built it using income subject to personal income tax. In this case, the deduction is actually carried out in the form of a return of previously lost funds.

Deductions are provided in the following cases:

purchase or sale of an object;
construction of residential premises for personal use;
redemption of certain property by the state or local (municipal) authorities from a citizen or individual.

A property deduction is not provided for individual entrepreneurs when selling residential real estate owned for a period of more than 5 years, since the obligation to pay tax is not established. Exception: sale of commercial real estate. Regardless of the period of ownership, the owner is obliged to file a declaration and pay tax; In this case, a property deduction for individual entrepreneurs can also be provided.

When purchasing an apartment or other housing, the owner can return part of the money spent (13% of the cost), if the personal income tax is paid regularly.

Let's look at an example of what conditions exist in practice for receiving a deduction when buying an apartment:

availability of income subject to personal income tax at a rate of 13%. If a special regime is used, then there must be additional taxable income in addition to that declared under the special regime;
timely submission of the declaration in form 3-NDFL;
availability of documents confirming the acquisition of the object and payment of the declared amounts of money (agreement, acceptance certificate, if required, receipt of funds, extract from the Unified State Register of Real Estate);
registration of the apartment as the property of the entrepreneur himself, his child or spouse.

You can also reduce the amount of expenses for funds spent, for example, on treatment or education of children.

Let’s summarize once again whether an individual entrepreneur can return a tax deduction. This is possible only if the above conditions are met: if there is income subject to personal income tax, or the entrepreneur is on the general tax system. If the entrepreneur does not fall under these conditions, his spouse can exercise this right.

Standard deductions

Such a deduction is provided in accordance with Art. 218 of the Tax Code of the Russian Federation, to the following persons in the amount specified by law:

500 rubles - Heroes of the Russian Federation or the USSR, holders of the status of full holder of state awards;
1400 - parents of the first and second child (the number of marriages does not matter);
3000 - such a significant deduction is provided for the third child and Chernobyl liquidators and disabled people of the Second World War;
6000-12,000 - legal representatives of disabled children, school students and educational institutions, organizations, but only full-time and only up to 24 years of age (parents, and in addition, trustees and guardians).

Social deductions

To receive such a tax deduction, you will need to confirm that the individual entrepreneur incurred the following expenses:

for charity; here it is necessary to pay attention that the amount spent on good purposes cannot exceed a quarter of the annual income;
for the education of the citizen himself or his children;
for treatment of a citizen, his children, parents or spouse;
contributions to pension funds not included in state system;
contributions to the funded part of the pension made at the initiative of a citizen.

The basic rule continues to apply in this case. The amounts of tax deductions are established by law, taking into account the conditions important for their determination.

Professional tax deduction

The professional tax deduction for individual entrepreneurs is provided only to individual entrepreneurs who are subject to the general taxation system. This is the only type of tax deduction provided in connection with business activities.

There are two types of professional tax deduction:

in the amount of expenses incurred in connection with the implementation of the business;
in a fixed amount - 20% of annual income.

In the first case, it is necessary to confirm the expenses and justify their connection with entrepreneurship (types of expenses are given in Articles 252 - 255 of the Tax Code of the Russian Federation). In the second case, no documentary evidence is required. The citizen himself has the right to determine the type of preference.

Investment

This type of deduction is received by entrepreneurs engaged in investing funds with a long-term perspective. Taxable amounts can be reduced by the difference between the sale amount and the original cost (if it is positive), by the amounts deposited into the investment current account during the reporting period, and by the total profit from investment activities.

Decor

Now let’s figure out how to get an individual entrepreneur tax deduction. To receive a property tax deduction, you must provide a whole package of documents:

passport and TIN;
extract from the Unified State Register of Individual Entrepreneurs;
agreement under which ownership rights are transferred (purchase and sale);
act of acceptance and transfer of an object;
confirmation of expenses;

In order to apply for a professional tax deduction, you do not need to fill out an application, you will only need to fill out the 3-NDFL declaration and submit reports justifying the expenses incurred (if one of the tax deductions is selected).

To obtain social benefits, you will need similar documents, a declaration and documents that can confirm the validity of expenses - contracts for the provision of services and performance of work, agreements, receipts, etc.

When purchasing a home, many small business representatives are interested in the question of whether an individual entrepreneur can...

After all, the return of funds paid under personal income tax will not hurt anyone, including individual entrepreneurs. Legislative acts provide citizens with common information, which is sometimes subject to challenge.

That is why it is necessary to understand the topic of obtaining a tax deduction for individual entrepreneurs in more detail.

Refunds are provided by law to the following persons:

For residents Russian Federation who are officially employed and pay income tax at the rate of 13% on all their income.

This is interesting! Not only a citizen can be a resident of the Russian state. Also, persons who do not have citizenship, but have a residence permit in the Russian Federation and live in the country for more than half of the days a year, can also apply for this status. In this case, one is noted interesting feature– citizens who have Russian citizenship, as well as a residence permit in another country (provided they have lived outside the territory of Russia for more than six months), are recognized as non-residents.

Pensioners who meet the listed requirements. The main condition for receiving a refund in this case is that pensioners must work for at least some period before purchasing an apartment in the last three years.

They cannot apply for monetary compensation under the following conditions:

If the citizen is not a resident of the Russian Federation.
In case of receiving dividends from taxes paid in full earlier (full refund - 260,000 rubles).
If the person is not employed or is employed unofficially (that is, income tax has not been paid to the state).
In case of purchasing property on preferential terms. For example, when buying an apartment using government programs assistance or housing subsidies.
If the real estate was not purchased at the expense of the applicant. For example, at the expense of the organization in which the applicant works.
Also, you cannot receive dividends from the government if you purchase real estate from relatives who are legally considered close.
In addition, legal entities that operate under a simplified taxation system cannot receive a refund.

So, according to the law, an individual entrepreneur can receive a tax deduction if he does not work under the simplified taxation system.

Now let’s look at the features of receiving a refund for individual entrepreneurs.

Features of tax deductions for individual entrepreneurs

Tax deductions for individual entrepreneurs must be provided by law, since all individual entrepreneurs pay personal income tax on their profits. But there are some exceptions in which individual entrepreneurs will not receive deductions. For example, individual entrepreneurs will not be able to return tax if the tax percentage is reduced, that is, if they use any benefits when paying taxes.

A refund is also possible if an individual entrepreneur carries out an activity for which tax is not paid, or if the activity falls under the simplified system of payments to the country’s budget. But even if an entrepreneur takes advantage of benefits, he still has the opportunity to receive a tax deduction when purchasing real estate.

To do this, the individual entrepreneur must satisfy the following rules and features:

An individual entrepreneur is required to pay personal income tax on his profits in the amount of 13 percent. For example, when using the UST, UNVD, PSN and other schemes, the tax base is smaller, therefore, the tax refund for individual entrepreneurs in this case does not apply. If he pays less than 13 percent, then he will receive a tax deduction only if he pays other taxes at a rate of 13%.
The individual entrepreneur had to submit documents to the tax office without delay, that is, the deadlines for submitting documents were met.
Also, an individual entrepreneur must have all the documents that can confirm income, as well as documentation on the purchase and sale transaction.
The owner of the apartment must be the entrepreneur himself.

It is important! An individual entrepreneur can receive a tax deduction only if he pays a tax rate of 13 percent to the state budget.

How to get a tax deduction if an individual entrepreneur worked according to a simplified scheme

According to the law, a tax deduction is not provided for individual entrepreneurs working according to a simplified method of paying taxes or not paying taxes at all, since they did not pay 13 percent of personal income tax.

But even in this case, an individual entrepreneur can receive a tax deduction.

Let's give an example. According to legislative acts, dividend returns can be obtained subject to payment of a 13 percent tax. That is, in order to receive a refund, you must pay this tax.

You need to know this! When returning funds through a tax deduction, taxes paid by the citizen three years before submitting the application are taken into account.

That is, if a resident, for example, was officially employed before the opening of an individual entrepreneur, then he paid personal income tax, therefore, he can return the money paid for taxation.

You can find out more about returning money to individual entrepreneurs in the video:

If you have not paid personal income tax for the last three years, you can try the following:

Issue a tax refund for a spouse who regularly pays dividends to the state at a rate of thirteen percent. This is possible even if the purchased apartment is registered as an individual entrepreneur.
Get a job. You can even do this in your own company. Of course, it will be impossible to return the funds immediately, since they were not paid into the budget. But according to the new legislation, this can be done in the following calendar periods.

How much refund can I expect?

We have already found out whether an individual entrepreneur can receive a tax deduction. This question can be answered in the affirmative. Now let’s consider what amount of tax dividends is provided when purchasing an apartment for an individual entrepreneur.

Peculiarity! For individual entrepreneurs there are no refunds additional conditions not provided. This means that the conditions for legal and individuals the same.

You can only return money already paid for the previous three years. For a clearer understanding, let's give an example:

The citizen is an individual entrepreneur who paid 13 percent on income for 3 years. The total amount he paid to the state was 300,000. He purchased an apartment worth 3 million rubles. This means he can return 13%. But according to the laws, refunds can be made from a maximum of 2 million. Therefore, one million is canceled.
2 million * 13% = 260,000, which is less than 300,000 paid to the state. This means that the individual entrepreneur can return 260,000. If taxes were paid less than 260 thousand, then less will be returned. But in subsequent tax periods the remaining amount can be returned.

Peculiarity! It is possible to return money from a resident’s purchase of an apartment, even if it was purchased for the purpose of using it not for personal purposes, but, for example, to open a store.

To get a refund you will have to collect everything Required documents and make copies of them, which must be submitted to the tax inspectorate with a request for a refund of taxes paid.

After submitting the application, the money must be transferred to the specified current account no later than 4 months later.

It is not legally prohibited for individual entrepreneurs to receive funds that compensate the tax base.

Therefore, the answer to the question whether an individual entrepreneur can receive a tax deduction can be answered in the affirmative. The main condition for individual entrepreneurs is the fact of paying a 13 percent tax.

State provision for the poor in the country applies to all citizens. But many are concerned about the question of whether an individual entrepreneur can be low-income in Russia (individual entrepreneur) in 2019.

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Indeed, in the case of this type labor activity There are a large number of features and nuances in different areas. And it is legislatively difficult to establish options for the development of events with the registration of state benefits.

Basic information

Entrepreneurial activity in Russia is a way of working for oneself and receiving direct profit from one’s labor. In this case, the employee does not share the income with other persons, intermediaries, but receives all the funds himself.

In such conditions, the performance and motivation of a person’s actions increases. Plus, his financial situation is higher than in the case of hired employment. But this version of work also has its own characteristics.

Due to low education in the business field, a person may have problems selling his goods and services. Therefore, there are risks of bankruptcy or the family being in need.

Important Concepts

Consideration of this kind of topic requires familiarization with a number of terms and provisions:

Concept	Designation
Poor	Citizens who have official state confirmation of low per capita income. In this case, this norm is compared with the living wage established in the region.
Benefit	State benefit, which is non-cash and acts as a discount on the main set of social goods and services for needy categories of citizens
IP	An individual entrepreneur is a person who carries out business activities on the territory of Russia and this is his official source of income. A citizen does not formalize legal status, but remains an individual
Set of social services	A certain list of government benefits that are provided to needy citizens in the order of assigning them the necessary status. The set should include those services and goods that a citizen needs for life in the first place

Who can receive this status

The poor make up about 15% of Russia's population in 2019. These are official statistics for all regions of the country.

Although to obtain such social status it is necessary to meet a number of requirements. The main factor in assigning the status of needy is family income.

The calculation is carried out based on several data in the following order:

Only a family or individual living separately can receive assistance as part of the support of the poor. An individual family member is not recognized as needy - only within the framework of a complete family formation.

What the law says

The legislative sphere has several points in terms of providing assistance to individual entrepreneurs. In this area, it is worth determining what income is taken into account when calculating the possibility of obtaining low-income status.

Similar provisions are located in Federal law No. 44-FZ “On the procedure for recording income and calculating the average per capita income of a family and the income of a citizen living alone for recognizing them as low-income and providing them with state social assistance.”

This regulatory document includes all the features for calculating the income of a citizen and family. Special attention should be paid to Article 5.

It talks about what income is taken into account. Moreover, the list even includes natural types of goods that are converted into monetary equivalent.

The provisions of this article of the Federal Law work in conjunction with Article 40 of the Tax Code of the Russian Federation. There is also a separate list of income that is included in the calculations.

This is the Decree of the Government of the Russian Federation No. 512 “On the list of types of income taken into account when calculating the average per capita family income and the income of a citizen living alone for the provision of state social assistance to them.” Within the framework of this document, a list of income is compiled.

Can an individual entrepreneur be recognized as low-income?

A citizen who is engaged entrepreneurial activity, can count on help from the state. The fact is that the law recognizes as income those funds that an individual receives from any work activity.

For accounting purposes, both money received as a result of hired labor and through entrepreneurial activities are accepted.

To determine the status of needy, it makes no difference where a person received his provision. Therefore, an individual entrepreneur can safely submit documents for registration of the appropriate status. But before that, the reasons for this operation must be determined.

The procedure for obtaining status in need in Russia will be the same for all citizens. There are no separate requirements for individual entrepreneurs. Therefore, the scheme for processing and collecting documents is the same for everyone.

Photo: algorithm of action for recognizing a low-income family

Where to contact

To obtain low-income status, you can contact several official government agencies. At the legislative level, a citizen is allowed to choose the most comfortable way to prepare documentation.

There are four options in total:

Social protection body	Located at the place of registration or residence of the family
Multifunctional Center	MFC, also located in accordance with the place of residence
Employer	All documentation can be transferred through him, as a representative of a working citizen
Internet resource State portal	Scanning of documents is required, but there will be no need to visit the government agency in person

Registration is carried out through one of these control bodies. Although all documents are sent to the social security authority in any case. It is there that the decision is made regarding the provision of benefits or refusal to apply for benefits.

Required documents

Obtaining any state preferential status involves collecting documentation confirming the grounds for preferential treatment. In this case, the set of papers will be standard.

The following items need to be prepared:

What counts for status?

After all, not the full profit from running a business is taken into account. Russian legislation indicates that deductions should be made from the total amount.

In this case, the following items that make up the income of an individual entrepreneur fall under the minus sign:

What benefits are provided?

Benefits in this case are divided into several groups - financial and preferential discounts. The main set of assistance that an individual entrepreneur can receive within the federal and local budgets includes the following:

subsidies for utility bills;
benefits for getting children to school and kindergarten, discounts on tuition fees at preschool educational institutions;
monthly additional payments up to the subsistence level, one-time benefits;
payments for children and the opportunity to receive free food and treatment.

If it is necessary to improve housing conditions, it is possible to put them on a waiting list, obtain a preferential mortgage, receive a subsidy for payment, or provide free housing.

Underwater rocks

The main feature of paperwork in the case of individual entrepreneurs is the determination of the grounds for receiving benefits. In this case, it is necessary to take into account the rules for calculating the income indicator - taking into account deductions of taxes and other fees.

In the case of the minimum cost of living, problems may also arise. The answer to all questions in this area concerns the division of these indicators between different subjects of the Russian Federation.

In Moscow this level will be higher than in other regions of the country. This point must be taken into account in order to correctly compare and determine the possibility of receiving government assistance.

It is also possible to obtain exemptions for individual entrepreneurs within the framework of programs for the poor. But in theory and legal norms, this procedure looks much simpler.

Since in total income for individual entrepreneurs, all payments received are included, excluding taxes. Money invested in the business also counts.

And this can increase the amount of profit, which reduces the chances of receiving preferential status - due to high income levels.

Video: mechanism for recognizing citizens as poor

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Question from Klerk.Ru reader Elena (Cheboksary)

The individual entrepreneur entered into an agreement for the provision of services with the LLC. Type of payments - non-cash. Can funds be transferred to an individual entrepreneur’s plastic card? If yes, what type of card?
Or is it necessary for an individual entrepreneur to open a current account in this case?

A personal account is a current account of an individual, including an entrepreneur, which is opened in a bank and used by him through a savings book or plastic card. According to the Regulation of the Central Bank of the Russian Federation dated April 1, 2003 N 222-P, the current account of an individual is a bank account that is opened on the basis of a bank account agreement and provides for settlement transactions not related to business activities. Instruction of the Central Bank of the Russian Federation dated September 14, 2006 N 28-I states that current accounts are opened by individuals for settlement transactions not related to business activities or private practice.

Current accounts are opened legal entities, as well as individual entrepreneurs or individuals engaged in private practice. The named persons use current accounts for payments related to commercial activities.
Thus, initially a personal account is not intended for business. At the same time, the law does not provide for a ban or any sanctions for the use of a personal account in activities.

If a merchant decides to use his personal card account in business, the inspectorate must be notified about this.
According to paragraph 2 of Art. 23 of the Tax Code, entrepreneurs are required to notify the inspectorate at their place of residence in writing about the opening or closing of accounts (personal accounts). This must be done within 7 days from the moment of opening (closing). This also applies to cases when an individual entrepreneur uses a current account in his work. The application must be submitted within 7 days from the date of registration of the individual as an individual entrepreneur. Otherwise, the businessman may be fined for violating the deadlines for submitting information under Art. 118 of the Tax Code for 5 thousand rubles. In this case, the situation remains unresolved when an individual entrepreneur worked for a certain time, and then decided to switch to non-cash payments and use his personal account. It is possible that inspectors will hold the merchant accountable, because the account was opened for them a long time ago, and accordingly, the 7-day period has expired. A businessman who decides to switch to non-cash banking can only be advised to open a new account. This will solve the problem of timing and will also make it possible to distinguish between amounts associated with business activities and used for personal needs.

In bank accounting, account N 40802 “Individuals - individual entrepreneurs” is allocated, which is used to record the receipt and expenditure of funds from individuals - individual entrepreneurs. And also account N 40817 “Individuals”, intended for accounting Money individuals not related to their business activities. Accordingly, the bank must inform about accounts of the first type.

An entrepreneur can freely open a personal account for an individual and use it in settlements related to activities. Partners will not have problems with officials using this method. They will transfer amounts as usual and receive payment into their accounts. An obstacle to using the account may be a bank account agreement, which directly prohibits the use of the account. And also bank employees who will refuse to transfer business-related amounts to a personal account.

Get personal advice from Elizaveta Seitbekova on accounting and online taxation is very simple - just fill out. Every day, three to five of the most interesting questions will be selected, the answers to which you can read in specialist consultations.

BLITZ!
An individual entrepreneur can receive a tax deduction after purchasing real estate!
But this requires the use of OSNO, or the payment of personal income tax on income from work combined with entrepreneurial activity. If the individual entrepreneur is on a simplified basis, unified agricultural tax, patent or UTII, filing a tax refund is trivial out of nowhere.

Now more details.

From the moment of registration with the state, individual entrepreneurs automatically become subjects of taxation, that is, they have an obligation to pay taxes. The amount and types of taxes vary between different tax schemes, although the total tax collections are in any case quite large. Precisely in order to reduce the tax burden, in Tax Code The Russian Federation has developed such a concept as “tax deduction”. In essence, a tax deduction is the right and opportunity for a taxpayer to reimburse part of the taxes paid through some other payments or to be completely exempt from paying them.

Individual entrepreneur real estate and tax deduction

With regard to real estate, entrepreneurs can apply the deduction when purchasing not only apartments, but also country houses and land plots. The legislation also provides for the opportunity to receive a deduction for the construction of country cottages, but only if all costs for paying workers, purchasing materials, etc. can be documented, so all receipts, sales and cash receipts, contracts must be collected and stored. When purchasing newly built housing (primary market), a tax deduction can be extended to funds spent on repairs and decoration of the purchased apartment.

Conditions for tax deduction refund: general rules

When developing and explaining the concept of “tax deduction,” legislators identified several basic rules for obtaining it. In particular, the following conditions must be met:

The largest amount by law for using a tax deduction is 2 million rubles. If an apartment or some other piece of real estate costs more, then everything above 2 million rubles. will not be taken into account;
The personal income tax is 13%, so it is easy to calculate that the maximum tax deduction (that is, from 2 million rubles) will be equal to 260 thousand rubles. It is worth noting that the amount of the tax deduction can be returned at any time period - in this case there are no restrictions;
Since the beginning of 2014, a rule has been in force according to which it is possible to receive a tax deduction not from one single apartment, but from several apartments or any other real estate at once. The main thing is to comply with the requirement that their price does not exceed 2 million rubles.
you can include in the deductible the cost of repairs and finishing of a new apartment if the purchase and sale agreement states that the housing is purchased without finishing;
if real estate is purchased from close relatives (parents, brothers or sisters, own children), the right to a tax deduction for its acquisition is lost, since in this case the partners in the transaction are recognized as interdependent individuals (clause 1 of Article 105.1 of the Tax Code of the Russian Federation);
If the property was purchased with a mortgage, then a tax deduction is also made from the interest paid on the mortgage loan. Moreover, in this case, taking into account interest, a deduction can be made from an amount of 3 million rubles. This norm was developed as a measure of additional support for the development of the Russian mortgage market.

The above rules apply not only to individual entrepreneurs, but equally to all other citizens of the Russian Federation.

Story: Until 2014, a tax deduction could only be applied to one piece of real estate; now this restriction has been removed. The main thing that total cost of acquired real estate was not higher than 2 million rubles.

Thus, it is obvious that the tax deduction is an excellent help to support those citizens who are employees and receive a “white” salary. In this sense, it is somewhat more difficult for individual entrepreneurs: they cannot always return taxes paid to the state.

Who is entitled to a tax deduction?

As already mentioned, not all individual entrepreneurs can apply for a tax deduction after purchasing real estate. In order to receive it, individual entrepreneurs must meet a number of parameters.

An individual entrepreneur must apply the general taxation regime, since only it implies the payment of personal income tax, which means that the entrepreneur is obliged to keep strict records of tax reporting and accounting, maintain the Book of Income and Expenses, pay VAT and perform all other procedures required by OSNO. Special tax regimes, as well as the Patent system, do not provide the opportunity to make a tax deduction from the purchase of real estate, since businessmen subject to these types of taxation are exempt from paying personal income tax. But there are also exceptions here: they apply to those individual entrepreneurs who, in addition to income under a special tax system, have income subject to personal income tax at a rate of 13% (for example, if a businessman combines tax regimes with OSNO).
An individual entrepreneur must have a profit with which he can pay personal income tax at a 13% rate. In this case, an exception is made for income received as part of dividends and participation in the share of a legal entity.
Individual entrepreneurs paying personal income tax are required to submit a declaration in form 3-NDFL to tax specialists at their place of residence by April 30 (inclusive) of the year following the reporting year. It must indicate information about the accrued tax and the amount of deduction that the individual entrepreneur expects. If a businessman also has income for which he must provide the tax authorities with a 2-NDFL certificate, then in order to receive a deduction he must transfer this to the tax service (most often this applies to entrepreneurs who rent out property as individuals and individual entrepreneurs who additionally work under employment contracts).
An individual entrepreneur must have on hand a complete list of documents proving the fact of purchasing housing (certificate, agreement, deed, etc.).
And finally, the last condition that must be fulfilled in order to receive a tax deduction: the purchased apartment or other real estate must be registered either in the name of the individual entrepreneur himself, or in the name of one of his children, or in the name of his spouse.

Thus, only if all of the above conditions are met, an individual entrepreneur receives the right to a tax deduction.

Attention! Individual entrepreneurs have the opportunity to receive the desired deduction even if they plan to use the purchased apartment for commercial purposes. That is, for the purposes of tax deduction, the reason for purchasing the property does not matter.

For your information. If an individual entrepreneur is married and his other half has income from which personal income tax is paid in the amount of 13%, then when purchasing real estate, the husband or wife of the individual entrepreneur can receive a full tax deduction. The reason for this is that according to the law of the Russian Federation, spouses have common property, as well as equal rights and obligations.

When can you ask for a deduction on real estate?

An individual entrepreneur has just purchased an apartment. Can he immediately prepare documents for the tax office to provide a deduction? No, he needs to wait until next year. Having received the documents on property rights, you can ask for a tax deduction only in the coming reporting year.

What if the purchased apartment is sold again?

A situation may arise when an individual entrepreneur purchases real estate, submits documents for a tax deduction, and then sells the apartment. It's not illegal. Moreover, even if this action was taken before the deduction amount was exhausted, it is legal. Everything that the owner does with the property after purchase no longer concerns tax payments. The deduction will be provided until the amount is completely exhausted.

Based on the information above, we can summarize that an individual entrepreneur, in principle, can receive a tax deduction. However, for this it is necessary that it meet certain parameters, the main one of which is the businessman’s payment of personal income tax (13%). To do this, you can use two options: either use common system taxation in your activities, or find a part-time job that will generate additional income subject to personal income tax.