President of the Russian Federation Vladimir Putin signed a law exempting large families from paying personal income tax. This decree was published on the official portal, where you can get legal information, and concerns those families who have sold real estate to improve living conditions. The initiative was put forward during the congress of the United Russia party back in mid-June and was approved. The President noted that the main purpose of the adoption of the law is to help families with children improve their living conditions. Often, at the birth of a child, there is a need to expand the living space, and a tax of 13% of the cost of housing is a significant amount, which is more logical to invest in the purchase of a new apartment. Therefore, preferential conditions will allow a large number of families with children to change housing for more spacious apartments much faster.
The preferential category includes parents with two or more minor children or student children under the age of 24, provided that they study full-time. The law also applies to citizens who have not only relatives, but also adopted children.
It is separately noted that the law applies to cases when the property was sold after 1.01.2021. There are also a number of mandatory conditions that must be met in order to receive benefits: the purchase of a new apartment must be carried out in the same calendar year when the old one was sold, but no later than 30.04.2022; the cadastral value of the old real estate should not exceed the price of the new one and at the same time be more than 50 million rubles; members of a large family should not own other real estate with a total area of more than half of the purchased; housing must be owned for at least five years.
Otherwise, when selling, the family will have to pay a standard tax of 13% of the property value.
The law came into force on November 29, 2021, and taking into account the new amendments, it does not matter how long the old apartment was owned by the family. This innovation is aimed at supporting young families who have recently acquired their own real estate and expect to improve their living conditions. Thus, people applying for benefits when buying a home have time to sell an old apartment and buy a new one before April 1, 2022.