Declaration of 3 personal income tax when selling a car

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The sale of a car results in a certain amount of funds being received by the seller. If he owned a vehicle for less than three years, then he will have to prepare reports to the Federal Tax Service, and in some cases pay tax. A 3-NDFL declaration must be drawn up when selling a car, which is then transferred to tax officials. If this requirement is not met, the citizen will have to pay a fine and accrued pen alties.

When do I need to file a declaration?

Declaration 3-personal income tax when selling a car is not drawn up in every situation. Citizens must report on their income in the following cases:

• ;
• if the holding period is less than three years, then the declaration is submitted to the Federal Tax Service even if the citizen did not receive any profit from this transaction, but in this case, if there is evidence of a lack of income, you can notpay direct tax.

You do not need to submit reports to the tax service only if the car has been owned by a citizen for more than three years. It is not even required to pay tax, and even if the car is sold at a high cost.

Document submission deadline

Filling out the 3-personal income tax declaration when selling a car is quite simple, but it is important to remember the deadlines set at the legislative level. Reporting is submitted by April 30 of the year following the reporting year. For example, if the car was sold in 2018, then by April 30, 2019, you must submit a declaration to the Federal Tax Service.

Additionally, the timing of payment of tax levied on income received is taken into account. You need to transfer the due amount of funds before July 15, 2019.

Documentation submission methods

Declaration 3-personal income tax when selling a car can be transferred to the Federal Tax Service in various ways. These include:

• sending documentation to the tax service via the Internet, for which you need to use the official website of the institution, and the citizen must also have a properly executed EDS;
• personal visit to the FTS office for self-transfer of the document in paper form, and it is advisable to use two copies at once, so that the FTS employee stamps on one document and indicates the date of acceptance of the documentation;
• using the help of a trusted person who has a notarizedpower of attorney;
• sending a declaration and a contract for the sale of a car to the Federal Tax Service by mail, for which you need to order a valuable letter, as well as pay for an inventory of attachments.

The specific choice depends on the desires and capabilities of the direct taxpayer. Most often, citizens prefer to visit the branch of the Federal Tax Service themselves. If you choose to send documentation by letter, it is important to find out in advance the current address of the desired service department.

What additional documents are needed?

When submitting a 3-personal income tax declaration when selling a car, it is necessary to prepare some other documents. They act as confirmation of the transaction. Therefore, in addition to the direct declaration, you will have to prepare other papers:

• contract of sale drawn up with the buyer of this property, and it must indicate the current value of the car;
• power of attorney, if all documents are prepared and provided by the taxpayer's representative;
• passport and TIN of a citizen;
• passport of the sold car;
• payment documents confirming that the citizen actually received a certain amount of funds for the vehicle sold.

All these documents are carefully checked by the employees of the Federal Tax Service, as they must make sure that all the information provided in the declaration is true.

Composition methods

A 3-personal income tax declaration must be drawn up when selling a car,less than 3 years owned. It does not matter whether the citizen received any income from this transaction. Filling in 3-NDFL when selling a car is carried out in several ways:

• entering information manually, for which you will first have to print the current form;
• filling out a document using a computer;
• the use of special programs that automatically make the necessary calculations, so you just need to enter certain information into the program to get a finished declaration as a result;
• appeal to specialized companies offering services for the prompt and correct filling of various reports.

Each citizen independently chooses the best method. A sample of filling out 3-NDFL when selling a car can be studied below.

What information is included?

Each taxpayer should understand how to fill out 3-personal income tax when selling a car. If a person cannot complete the process on their own, then it is advisable to contact a specialist who requests a certain fee for their services. When filling out the declaration, the following data must be included in the document:

• personal information about the taxpayer, provided by his full name, date of birth, passport details and TIN;
• information about the car sold;
• amount received from buyer;
• the period during which the taxpayer was the owner of the property;
• fee amount,payable.

The tax amount is calculated automatically if a citizen uses a special computer program to fill out the 3-personal income tax declaration when selling a car.

Tax calculation rules

Not always when submitting a 3-personal income tax declaration to the Federal Tax Service when selling a car, it becomes necessary to pay tax. When determining this indicator, the following rules are taken into account:

• the fee is paid only from the income received, so if a citizen can prove that he did not receive any profit from the sale of the car, since the sale price is less than the purchase price, then he will not have to pay any funds to the state, but for this must have a contract of sale, on the basis of which they originally bought the car;
• if the car was donated or inherited, then personal income tax is charged on the entire amount received, since it is impossible to prove the costs of purchasing the car;
• it is allowed to reduce the tax base by using a special deduction, the amount of which is 250 thousand rubles, so if the cost of the car does not exceed this value, then you will not have to pay tax at all.

The fee is 13% of the tax base. This base is the value of the car sold. If the property was sold by a non-resident, then for him the tax rate increases to 30% of the cost of the car.

Calculation example

For example, a citizen bought a car in 2017 for 540 thousand rubles. He decides to sell it at the beginning of 2019. Since he owned this property for less than three years, he will have to submit a 3-NDFL declaration when selling a car.

A man sells a car for 650 thousand rubles. The tax base is represented by the difference between the purchase and sale value, therefore it is: 650,000 - 540,000 \u003d 110,000 rubles. From this amount, 13% is calculated: 110,00013%=14,300 rubles. It is this amount that the citizen will have to pay in the form of tax.

A correctly calculated amount should be indicated in the declaration. The correctness of the calculation is necessarily checked by the employees of the Federal Tax Service. Therefore, if any discrepancies are revealed, then the citizen will have to submit an updated declaration to the service department.

How to fill out 3-personal income tax when selling a car?

The algorithm for filling out this report is presented in the following steps:

• the necessary information is initially entered on the title page, which provides personal information about the taxpayer;
• the first section is intended to indicate data on the amount of tax payable to the budget;
• second section is used to calculate the tax base and the fee itself;
• sheet A contains data on the source of income, which is the buyer of the car, so if he is a citizen, then his full name is given, and if the car was bought by a company, then its name, legal address are indicated and other details;
• sheet D2 provides information on the tax deduction used;
• sheet E1 is filled out only if necessary, namely when calculating various social or standard deductions.

Each sheet is signed by the taxpayer, and the date of creation of the documentation is also put. If the declaration is drawn up in electronic form, then an EDS is required for its signing. A sample of 3-personal income tax when selling a car can be studied above.

Pen alty for not making a declaration

If a citizen has owned his car for less than three years, then in any case he is obliged to submit a declaration to the Federal Tax Service. Even if he does not receive any profit from this transaction, he will still have to report to the tax service.

Declaration must be submitted by April 30 next year. If these deadlines are violated, the citizen will have to pay a fine. Its size is:

• monthly 5% of the amount of the fee paid for the income received from the sale of the car;
• the maximum pen alty is 30% of the tax, but not less than 1 thousand rubles;
• if you do not need to pay tax, then the fine is 1 thousand rubles;
• Additionally, late payment of taxes and fines are charged monthly pen alties.

Therefore, each person who is a responsible taxpayer must competently approach the process of submitting various reports to the tax service. He will not receive any notification from the employees of the Federal Tax Service, therefore he must take care of himselfdrawing up and submitting a declaration to the service department located at the address of his residence.

Conclusion

When selling a car, a 3-personal income tax declaration will have to be submitted to the tax service if a citizen has owned this property for less than three years. It does not matter whether he received any income from the conclusion of such a transaction.

You can draw up a declaration yourself or with the help of specialists. Documentation can be submitted in different ways, so each taxpayer can easily choose the most suitable option for himself. If the declaration is not handed over to the employees of the Federal Tax Service within the established time limits, this will lead to the accrual of fines and pen alties that have a significant amount.