LETTER OF THE FEDERAL TAX SERVICE OF THE RUSSIAN FEDERATION

of February 12, 2013 No. ED-4-3/2254 @

About procedure for determination of tax base on income tax

According to the paragraph of the Code stated above in case of determination of the size of tax base on income tax instead of use of the right to property tax deduction the taxpayer has the right to reduce the amount of the chargeable incomes by the amount of the expenses which are actually made by it and documentary confirmed connected with receipt of this income.

Thus, according to provisions of paragraph 2 of the subitem 1 of Item 1 of article 220 of the Code, the taxpayer has the right to reduce the amount of the leviable income from sale of specific object of the property which is in its property less than three years by the amount of documentary confirmed expenses connected with acquisition of the same object of property.

At the same time if the amount of documentary confirmed expenses on acquisition of one object exceeds the amount of the income on this object, the turned-out remaining balance cannot be considered in case of determination of the amount of the leviable income on other objects and, respectively, is not considered in case of determination of taxable basis on income tax in general for tax period.

Bring this explanation approved with the Ministry of Finance of the Russian Federation to subordinate tax authorities.

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