Declaration for the sale of a car (less than 3 years of ownership). Tax return

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

When selling a car, 13% of the transaction value must be transferred to the budget. But that's not all. Taxpayers also need to complete the report and submit it on time. For more information on how to fill out a tax return when selling a car, read on.

Who should pay tax?

According to Art. 217 of the Tax Code, citizens who own a car purchased less than 3 years ago are required to pay personal income tax. After the expiration of this period, the person is exempted from paying the tax. This category also includes people who sell a car for less than the original cost. Previously, they must confirm the unprofitable transaction by attaching a copy of the agreement on the purchase of a car and an invoice from the traffic police. Such citizens must still fill out a declaration for the sale of a car that has been in their ownership for less than 3 years. Attention! It's not about calendar years. The countdown period starts from the date of purchase of the vehicle. The date of registration of the car does not matter.

Timing

Taxpayers are required to submit a report by April 30 of the year following the reporting year. The fee must be paid by June 15 of the same year. If the declaration after the sale of the car was submitted late, the violator faces:

• Pen alty 5% of the fee for each day of delay.
• Pen alty 40% of the fee if the delay exceeded 6 months.

The length of ownership of the car does not matter. If a vehicle is being sold that has been owned for more than 3 years, the taxpayer is required to complete and submit a declaration. In case of violation of this requirement, he faces a fine of 1 thousand rubles.

Tax benefits

St. 217 of the Tax Code provides for a tax deduction when calculating the amount of the fee. It is 250 thousand rubles. If the amount of proceeds from the transaction or purchase expenses does not exceed the specified limit, then you will not have to transfer tax to the budget. If more, then the tax is paid on the excess amount:

personal income tax=(Revenue - Deduction (expenses)) x 0, 13.

The deduction applies to income from the sale of any number of vehicles during the year. This amount is fixed and cannot be increased. In this case, it will be necessary to confirm not only the fact of purchase, but also the fact of payment for the car.

That is, the taxpayer will have to provide an invoice from the salon and a payment order or receipt from the seller. If any of the documents is missing, then the tax authority will accept a deduction based on the sales agreement. The main thing is that it should contain the wording "all calculations are fully made." The phrase willrelevant only in contracts of sale with individuals. Individual entrepreneurs are required to carry out transactions for large amounts only through a bank account.

If the taxpayer does not have documents confirming the expenses for the purchase of the vehicle (contract, check, payment order, etc.), then he can use the tax deduction.

Nuances

The cost of buying a new car is not included in the income from the sale of the old one. The base for calculating the tax can only be reduced by the amount of expenses from the purchase of the sold car.

Example

Taxpayer sells 2 vehicles purchased less than 3 years ago. The selling price of the first vehicle is 400 thousand rubles, and the second is 500 thousand rubles. The seller decides to reduce the amount of proceeds for expenses when buying cars: 500 thousand rubles. and 200 thousand rubles. respectively. In such a situation, many payers make a mistake when calculating the amount of tax as follows:

400 + 500 - 500 - 200=200 thousand rubles. x 0, 13=26 thousand rubles

How to correctly calculate the amount of tax payable to the budget? Income and expenses are calculated separately for each car:

1 TS: (400 - 500)=0 - no transaction tax paid.

2 TS: (500 - 200)=300 thousand rubles

NDFL=(300 + 0) x 0, 13=39 thousand rubles.

How to prepare a declaration?

When filling out 3-personal income tax, the taxpayer needs to prepare 6 sheets:

• Title: personal data, details are indicated herepassports, registration address. Section 1 of the income statement for the sale of a car contains a detailed calculation of the amount of profit.
• Section 6 contains tax information.
• Sheet A reflects information for the traffic police.

When preparing a report, it is important to correctly indicate the following data:

• Income code - 1520 (income from the sale of property).
• Adjustment number is "0" if the first declaration for the past year is filed.
• OKATO can be found on the website of the Federal Tax Service by entering the address of the tax office.

Today, you can use the "Declaration" program to quickly fill out a report. You can download the software on the website of the Federal Tax Service in the "For Individuals" section.

Alternative options

Some taxpayers believe that they have the right to reduce the base twice, that is, first apply the "income - expense" scheme, and then use the deduction. It is prohibited by law to do so.

Disputes arise when selling several cars at once. For example, if a taxpayer wants to apply a deduction for one vehicle, and “income-expenses” for another. There is no direct prohibition on the use of two schemes at the same time in the legislation.

According to the Letter of the Ministry of Finance No. 05/9-133, when selling two vehicles in one reporting period, the taxpayer can take advantage of a deduction in the amount of up to 250 thousand rubles and reduce income by the amount of documented expenses. However, this interpretation contradicts the provisions of the Tax Code. The law says that you can apply costs instead ofdeduction. Therefore, the tax authorities refuse payers who use two schemes at once when calculating the amount of tax.

Example

During the year, two cars were sold for 280 thousand rubles. and 490 thousand rubles. The taxpayer has documents confirming expenses in the amount of 360 thousand rubles. only for the first vehicle. When calculating the tax amount, two schemes were used at once:

((280 - 250) + (490 - 360))=(30 + 130) x 0, 13=20.8 thousand rubles

If the taxpayer submits such a declaration to the IFTS, he will have to prove the correctness of the calculations through the court.

An example of filling out a declaration when selling a car

In 2016, a taxpayer sold a car for 600,000 rubles. The purchase price was 550 thousand rubles. He needs to submit a declaration and pay tax in 2017. In this case, it is more profitable to reduce the calculation base by the amount of expenses:

(600 - 550) x 0, 13=6.5 thousand rubles

Let's consider how to fill out a declaration for the sale of a car that has been owned for less than 3 years using the program.

First you need to specify the initial parameters:

1. Document type - 3-NDFL.
2. Inspection number - OKATO at the place of residence.
3. Adjustment number is “0”.
4. Sign - "physical. face.”
5. Income - "income statements".

Next, "Information about the payer" is filled in:

• Full name
• TIN.
• Citizenship.
• Passport data.
• Address in the Russian Federation - “residence”, when it comes to permanent registration;“stay” when it comes to temporary registration.
• Contact number.
• OKTMO - 8-digit code from the website of the Federal Tax Service.

Zero declaration when selling a car must contain information about the income of the payer. To fill it in, on the tab of the same name in the program, you need to click "+" next to the inscription "Sources of payments". You need to enter further information from the 2-NDFL certificate from the accounting department of the enterprise. Income is considered not only salary, but also vacation and sick leave. You need to enter information monthly in the total amount.

How to fill out a declaration for the sale of a car that has been owned for less than 3 years? The next step is to fill out income information:

1. Source of payments - full name buyer.

2. Income code - 1520.

3. Amount - proceeds from the sale.

4. Income Month.

5. Deduction code: 906 (if the income does not exceed 250 thousand rubles), 903 (if the income from the transaction exceeds the expense), 0 (if the deduction is not provided).

In our case, you need to select code 906 and in the field "Deduction amount" indicate the cost of selling the vehicle, that is, 550 thousand rubles.

After entering all the parameters, just print the document. When selling a car, a zero declaration is filled out in a similar way. Only on page 040 of section 6, the amount due will be indicated as “0”.

Reporting

Tax return when selling a car is filedtogether with:

• Payer's passport.
• TIN of the car owner.
• PTS.
• Agreement for the purchase of a car (if a deduction applies).
• Agreement for sale.

The completed declaration for the sale of a car (less than 3 years of ownership) should be printed out and dated and signed on each sheet. Further, the report must either be personally taken to the Federal Tax Service, or sent by registered mail with an inventory.

Which way is more profitable?

It makes sense to use the income-expenses scheme only if the purchase costs exceed 250 thousand rubles. In other cases, it is better to apply the deduction. In addition, the taxpayer will not have to prove the value of the car being sold.