Tax when selling a car: the amount in which cases you do not need to pay?

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

The sale and purchase of any property in Russia is in great demand. These are the most common types of transactions. Next, we will be interested in the tax when selling a car. When and how much will have to be given to the state? Are there any secrets to help evade or weaken taxation? What will the seller have to do after the sale of the vehicle? All these questions will be answered in the future. In fact, understanding the topic is easier than it seems at first.

Type of tax

Is the sale of a car taxable? As a rule, yes. But what kind of payment?

Taxpayers-owners of the vehicle must transfer personal income tax without fail. This is a personal income tax. It is paid from any income of a citizen with rare exceptions.

Purchase and sale of property provides for appropriate taxation. Therefore, many believe that it is always necessary to make a payment in favor of the Federal Tax Service. But is it really?

Ambiguous payments

Regarding the question of whether you need to pay tax on the sale of a car, the exact answer will depend on the circumstances in whichdeal is made.

Ideally, taxation for citizens of the Russian Federation and for foreigners takes place. This means that the seller will have to face personal income tax in the established amounts. But if certain conditions are met, then by law the owners of the vehicle are exempt from taxes when selling cars. Let's talk about this in more detail.

How much to pay

What tax on the sale of a car owned by a person will modern citizens have to pay? We found out that we are talking about personal income tax. The exact amount of the payment is impossible to predict.

The thing is that the citizens of the Russian Federation give 13% of the profits. Accordingly, the seller will transfer thirteen percent of the transaction amount to the Federal Tax Service.

A different interest rate applies to foreigners. It is 30% in 2018. Therefore, it is unprofitable to sell cars in Russia to foreign citizens.

Amount subject to payments

How much tax is taken from the sale of a car? The main problem is that taxation in Russia regarding the sale of cars is present only for certain transaction amounts.

Ideally, it should be more than 250,000 rubles. After the amount of the transaction is higher than the specified number, taxation will be in full force. But with some reservations, which we will look at in more detail later.

Less than minimum

Is the sale of a car taxable? As already mentioned, not always. There are a number of features that help get rid of taxation by law.

If the transaction amountis less than 250,000 rubles, then you will not have to pay personal income tax under any circumstances. Unfortunately, in practice, this arrangement is extremely rare. And so they are almost not interested.

Owned less than 3 years

What tax is taken from the sale of a car? The seller will be charged personal income tax, which is equal to 13 percent. There are situations when you will not have to deal with the corresponding payments.

If the owner has owned the vehicle for less than three years, and the amount under the contract is more than 250 thousand rubles, then it will be necessary to transfer personal income tax without fail. This rule is spelled out in the Tax Code of the Russian Federation.

Owned for over 36 months

Income tax on the sale of a car is not always collected from the owners of the vehicle. To accurately understand the topic under study, you need to know how long the car has been owned by a particular person.

Did you own a car less than 3 years? We have already met with a similar situation. If the transaction amount under the contract is more than 250,000, taxation will take place. But what to do when a citizen has been the owner of the car for more than 36 months?

In such circumstances, personal income tax is not paid. Owning a vehicle for more than 3 years exempts the owner from taxation when selling movable property. There is nothing difficult or incomprehensible about this.

Yourself in the "minus"

Taxes when selling a car do not always have to be transferred by the previous owner of the vehicle. In real life, there are a number of principles that exempt from additional costs when concluding a studydeal type.

The absence of tax on the sale of a car is observed in the case when the transaction is carried out "at a loss" to the seller. In other words, if a citizen sells a vehicle cheaper than he buys it.

Suppose the car was originally bought for 600,000 rubles. The citizen decided to sell the vehicle for 590,000 rubles. In this situation, taxes are not charged even if the property has been owned for less than 3 years.

Spending reduction

Despite all the above features, modern residents of the Russian Federation can count on a reduction in personal income tax when selling vehicles. But for this you will have to collect a certain package of papers.

Personal income tax when selling a car is sometimes reduced by the amount of expenses for the maintenance of transport. For example, machine repair and maintenance can be taken into account. Then the tax base is reduced by a certain amount.

No documentation

And what if the vehicle was sold for more than 250 thousand rubles "minus" the seller, but there are no documents confirming this fact?

Income tax on the sale of the car will be collected in the prescribed amount. But this rule does not apply if the property has been owned for more than 36 months.

Define base

Assume that the car is sold for an amount exceeding the established minimum exemption from personal income tax. How to determine the tax base under such circumstances?

It is enough to subtract 250,000 rubles from the amount under the sales contract. This will be the taxbase.

To accurately calculate the tax when selling a car, it remains to multiply the resulting base by 13%. Consider the processes on a good example.

Example of fee calculation

So, the car has been owned by a citizen for less than three years. The owner of the car decided to sell it to himself in the "plus". Initially, transport was bought for 400,000, it is sold for 600,000 rubles. Documents for the first purchase are available. What payment will you end up facing?

To calculate personal income tax for the sale and purchase, you need to carry out the following calculations:

• 600,000 - 400,000=200,000;
• 200,000 x 0, 13=26,000.

Total - personal income tax will be equal to 26,000 rubles. It is this payment that the seller will have to make for the completed transaction.

Payments without documents

And how is the tax calculated when the transaction for the sale of the vehicle is carried out in the "minus" to the owner? Suppose that the owner of the car does not have documents confirming the costs of buying a car.

Consider the situation: a couple of years ago, a citizen bought a car for 300,000 rubles. There is no confirmation of this. In 2017, the owner sells movable property for 600,000 rubles.

Tax on car sales will be calculated as follows:

• 600,000 - 250,000=350,000;
• 350,0000, 13=45,500 rubles.

Ultimately, 45,500 rubles will have to be transferred to the Federal Tax Service for the operation. The taxable amount is taken from the difference between 250 thousand and the amount under the contract.

Reporting

There are some more points, ohwhich were not mentioned. They are closely related to taxation when buying and selling cars.

For example, when selling a vehicle, you will have to file a tax return with the Federal Tax Service. Relevant documentation is always provided. It doesn't matter if tax is paid or not.

The absence of a timely submitted declaration in the form of 3-personal income tax entails a certain punishment. To date, such an act is punishable by a fine of 1,000 rubles. You will have to pay it in case of paying tax, and if the citizen is exempt from this kind of responsibility.

Description deadline

The sale of a car by inheritance provides for taxes exactly the same as in the normal sale of the vehicle. Receipt of property in the order of inheritance does not affect the issue under study.

When do I need to file a regular tax return? In Russia, there are certain deadlines for submitting the 3-NDFL form.

Declare the received profit no later than April 30 of the year following the transaction period. In other words, if the car was sold in 2017, it will be necessary to report to the state in 2018 by April 30.

Missing the deadline for at least 1 day, as already mentioned, entails sanctions for the seller of the vehicle.

Until what date to pay

We found out the tax-free amount when selling a car. And now everything is clear with the deadline for filing a tax return. And until what date do you need to transfer personal income tax?

Cash for the transaction will haveto give to the state before July 15 of the year following the year of signing the treaty. Before this period, funds can be transferred, later - no.

Punishment for tax evasion

Among other things, citizens may face personal income tax delays. Such a situation entails certain sanctions, namely fines. What sizes?

For non-payment of tax and failure to file a tax return imposes a fine of 1,000 rubles + 5% of the amount of the debt. At the same time, the maximum pen alty in percentage cannot exceed 30% of the tax.

Additionally, the seller is en titled to pay a pen alty fee. The corresponding pen alty begins to accrue from July 16. It stops after the citizen transfers the funds required by law to the Federal Tax Service.

What else to pay for

We have considered the basic tax when selling a car. The useful information on the sale of vehicles does not end there.

The thing is that the owner of the car after the sale of his property will face one surprise. We are talking about the transport tax. How legal is this kind of claim?

Completely legal. Another year after the sale of the property, the seller must transfer property taxes to the Federal Tax Service. In our case - transport taxes. They will be calculated taking into account the months of car ownership in a given year.

Accordingly, the last car tax will simply be lower than usual. No more spending.

Terms for payment of taxes for transport

Some citizens are interested in the question of whetherhow much you have to pay for the car. This is a transport tax (for property).

In 2018, according to current laws, owners must pay for property before December 1. Late payment starts December 2nd.

Of course, you will have to pay for the previous year. In 2018, a transaction for 2017 is carried out, in 2016 for 2015, and so on. There is nothing difficult or incomprehensible about this.

What can be deducted

It was previously said that car sellers are en titled to a so-called deduction. More specifically, you can easily reduce the tax base for certain transportation-related expenses.

According to the law, the deduction includes:

• services for finding a vehicle, checking the cleanliness of the operation, compiling documentation;
• taxes transferred for receiving a gift or inheritance;
• paying car tolls;
• customs transactions;
• actual cost of the car.

All these payments will have to be documented. Otherwise, they simply will not be taken into account by the tax authorities.

What is not taken into account in the deduction

It is important to understand which expenses will not be taken into account under any circumstances. The following spending will not reduce income tax when selling a car:

• interest on a loan for a vehicle;
• car insurance;
• payments on testator's debts;
• debts for buying a car.

Even if there are papers confirming the relevant transactions, it is not possible to take them into account when calculating personal income tax for the sale of a vehiclesucceed. Such a right is simply not offered by law. There are no privileges and permits in this matter.

Procedure for applying to the Federal Tax Service

A few words about how to correctly declare income for the sale of a car to the Federal Tax Service. It is worth noting that a declaration with a package of papers is submitted directly to the tax office or through the MFC. Moreover, the 3-personal income tax form is considered both in electronic and paper form.

In general, step-by-step instructions for contacting the Federal Tax Service after the sale of a vehicle looks like this:

1. Conclude a sale and purchase deal. Receive the money and give the buyer a receipt in the prescribed form.
2. To prepare a package of documents. Let's take a look at their list below.
3. Fill out your tax return.
4. Apply to the Federal Tax Service or the MFC within the time limits established by law.

That's it. Now it remains only to pay the tax if necessary. It's not that hard to do. You can resort to the help of Internet banking, ATMs, bank cash desks, as well as electronic wallets. Everyone chooses the method of paying taxes on their own. The main thing is to meet the deadlines.

Documents for declaration

And what papers will be useful when applying to the tax authority after the conclusion of a transaction for the sale of a car?

Often a documentation package includes:

• Applicant's TIN;
• form 3-personal income tax;
• contract of sale;
• proof of receipt of money for the transaction;
• identity card;
• statements indicatingfor the duration of car ownership;
• certificate of registration.

All this will be enough to apply to the Federal Tax Service, and to fill out a tax return. Additional references are also available. These are statements showing transportation costs. It means those that reduce the tax base in the end.

Conclusion

We found out if the sale of a car is taxed. As a rule, understanding this topic with the right approach is not so difficult. Current laws allow in certain cases to get rid of taxation.

There are no benefits or other bonuses for the sale of cars. Fortunately, under certain circumstances, the population can completely get rid of income tax for the sale of their property.

But some people may be exempted from the transport tax in whole or in part. For example, pensioners have the right to own vehicles without taxation. This bonus does not affect personal income tax when selling a car.

Now it is clear when, how and in what timeframe you will have to pay income tax for the sale of a car. The information provided is up to date.