NEW BENEFIT FOR FAMILIES WITH CHILDREN

NEW BENEFIT FOR FAMILIES WITH CHILDREN.

1. Pay no tax on selling a house and land.

Since 2021, families with two or more children have been exempt from personal income tax when selling a flat or house to improve their living conditions. Now no personal income tax will be payable when selling the land on which that home stands either. The exemption also extends to outbuildings on that land. The State Duma adopted this law.

2. There are several conditions.

— the exemption applies to parents or adoptive parents with two or more minor children, or children under 24 studying full-time;

— the new home must be bought in the year the old one is sold or by 30 April of the following year;

— the new home’s total area or cadastral value must exceed the area or value of the residential property sold;

— the cadastral value of the home sold must not exceed 50 million rubles;

— at the time of sale, family members must not own more than 50% of another dwelling larger in area than the one purchased;

Local legislation may set a maximum land-plot area that can be sold without paying personal income tax.

The land plot and outbuildings must not be used for business activities.