When selling any property, a person receives a certain income, which must be taxed. In Russia, there are special payments to the fiscal service on this account, which must be made as a result of the sale of any property. But quite large amounts of taxes make people think about the possibility of reducing this amount. State regulatory legal acts provide for such an opportunity, but only subject to certain conditions. In some cases, profits are not taxed at all. This article will talk about such a possibility as a deduction when selling a car for less than 3 years. How to get a deduction, what does the legislation say about this possibility?
Obligation to declare income from any sale of property
The tax deduction for the sale of a car for less than 3 years is associated with certain obligations established by law. It is believed that all residents of the state have the right to receive a deduction. These include all people who are in the territory of the Russian Federation for more than one hundred eighty-three days.
Income is generated from any sale of property that has been owned for at least three years. Another condition is the owner - this must be an individual. In the end, the amount that a person has earned from the sale of, for example, a car is taxed.
The deduction for the sale of a car for less than 3 years also implies the procedure for drawing up the relevant declaration. It must be completed in the form of 3-personal income tax and provided to the appropriate department of the fiscal service. This paper secures property rights in relation to income derived from the sale of property.
Decrease in profit on sale
The property deduction when selling a car for less than 3 years can be replaced by a procedure for reducing the amount of profit from the sale. The amount of the deduction will be equal to the expenses incurred as a result of the acquisition of the machine. But to implement this option, all expenses must be fixed and documented. Sometimes it is more advisable to carry out just such a procedure, rather than a deduction. Such a decrease in income for immovable property of a residential nature should not exceed the amount of one million rubles. If we talk about cars, as well as real estate of non-residential type, then this value is four times less - 250 thousand rubles.
If the object was shared by several persons, then when selling it in its entirety, the deduction amount is equal to one million rubles, which is distributed proportionally according to the invested shares. Another distribution procedure may be fixed by agreement.
But when an individual sells only his part of the shared object, he also has the right to a deduction, which will be the same amount as in the previous case.
In the case of the sale of several property objects, this procedure does not apply to all, but applies to each individually.
If the profit from the sale is not more than the above, then the obligation to file a declaration remains. Only in this case, property is not taxed.
Car sale
Before you receive a tax deduction when selling a car for less than 3 years, you need to implement the sale procedure itself. It takes place in several stages.The first step for the implementation of the vehicle is its assessment and assignment of value. Regarding it, the deal will be carried out.
In order not to accidentally become a debtor of the fiscal service, you must first remove the car from the register. In the event that this is not done, taxes continue to be charged.
At the next stage, the conclusion of the contract of sale itself takes place directly. At this moment, a document, such as a vehicle passport, is important for the car. The transaction procedure includes the transfer of funds in accordance with the amount prescribed in the contract.
Also, before you receive a tax deduction when selling a car for less than 3 years, you need to collect a certain package of documents. It includes payment statements, checks, certificates from financial institutions. Due to the correct and competent collection of these securities, an individual can reduce the amount of tax payments or even exclude the procedure of fees to the state treasury. If any of the certificates is not enough for a complete set, the person may receive a tax deduction from the inspector when selling a car for less than 3 years.
When the sale process is carried out by proxy, you must also ensure the transparency of the transaction and the honesty of both parties. In this case, the risk of being cheated increases at times, since the fact of payment is not supported by documents, and ownership remains with the old owner. For both parties, this is not very beneficial, as the buyer can pay the money, and ultimately remain without a car. And in this case, the seller remains liable for paying taxes and penalties for the unlawful actions of the new car owner.
Transport tax
First you need to understand the types of fees in order to make a deduction when selling a car for less than 3 years. The tax required for this procedure is of two types:
- transport;
- income.
The first type of tax is due to the fact that it is levied for the fact that the car was owned by a person for a certain period. The peculiarity of the transport fee is that its value is determined by the region in which the vehicle is registered. Depending on the locality, a fee of a certain amount is charged.
The formula for calculating the transport tax is the same. It differs only depending on certain features, but in general terms is the product of engine power and the rate established within the region. Factors that affect the final number in a formula include:
- amount of horsepower;
- tax rate;
- tenure of the car (if the person was the owner of the vehicle for less than a year, then the formula must be multiplied by the tenure divided by twelve months);
- the cost of the car (if the assessment showed that the price of the car is more than three million rubles, then the formula must also be multiplied by an additional coefficient).
But there are a number of exceptions that exempt a person, in principle, from the obligation to pay this tax.
Income tax
Before you receive a deduction when selling a car for less than 3 years, you should carry out the procedure for paying income tax. It is also called income tax.
The amount of income tax depends on various factors. These include the type of person paying the tax. In the event that the payer is an individual, the state has the right to withhold thirteen percent of the income received from the sale of the car. Other calculations are based on precisely this number. Also in the formula, the moment of determining the cost of vehicles plays an important role. This value can be calculated both from the personnel type of price and from the market. The last figure is usually preferred by fiscal institutions.
As for legal entities, the income tax rate for them is twenty percent. For non-residents, this value is ten times higher, that is, equal to thirty percent. In connection with this situation, the sale of vehicles in the Russian Federation is carried out mainly by individuals.
An exception
Income tax is levied on various individuals - both individuals and legal entities. The status of a resident does not matter. The exception is people who have owned a vehicle for more than three years.
The second entities that are exempted from this responsibility are motorists who bought their car at a price higher than the cost of sale. But this fact must be confirmed. To carry out the procedure in this way, it is necessary to submit to the inspector a package of documents consisting of the following papers:
- the original and a copy of the contract of sale, which confirms the fact of the acquisition of a vehicle;
- form 3-personal income tax confirming the fact of sale;
- a photocopy of the certificate of registration of the car (this document is issued by the State traffic inspectorate)
Deadline for submission of documents
The deduction calculation when selling a car for less than 3 years is carried out in accordance with the Tax Code. Its provisions also establish the deadlines for submitting a declaration to fiscal authorities. Based on the rules, this action must be carried out on a date that is limited to the thirtieth of April of the year following the sale of the vehicle. Payment is made during the next two and a half months, until the fifteenth of July. It is very important to remember these dates, since if you do not comply with these conditions, you will also have to pay a fine. For violation of the filing time to the fiscal authorities of form 3-NDFL, the following types of punishment are provided:
- Five percent of the amount of tax that should have been paid to the state treasury. It is funded, that is, accrued for each overdue day. However, in aggregate, it can only reach the limit of thirty percent.
- Forty percent of the amount of tax that should have been paid to the state treasury. This penalty is charged on a monthly basis, but only starting with a delay period of six months.
Package of documents for deduction
Following the deduction model when selling a car for less than 3 years, it is necessary to collect a package of a certain kind of securities. This should be the declaration itself, drawn up in the form of 3-personal income tax. But for her, you will need papers such as an identity document (that is, a passport), the identification code of the former owner of the vehicle. You will also need documents not only for the driver, but also for the car. These include the vehicle passport, as well as the transaction certificate and the receipt confirming receipt of funds. In the event that the car was owned for less than thirty-six months and the cost of the contract was more than 250 thousand rubles, a contract for the purchase of a car is also necessary.
Preparation of a declaration
Before you fill out a deduction for a deduction when selling a car for less than 3 years, you need to understand that it is generally worth filling out. Total tax reporting includes twenty-three sheets. On the part of the person on whom the obligation to pay the fee is imposed, only six sheets need to be filled out. The first two are the title ones. It is for their registration that you will need an identity document and an identification code. The first pages indicate passport data, TIN and the address at which registration was made.
The first section includes the procedure for calculating the amount of tax. It indicates information about the income received from the sale of the vehicle, as well as the amount that must be paid to the state treasury. But the final number will be spelled out in the sixth section.
Next in line for filling is the so-called sheet A.It reflects the data on the contract of sale of a vehicle. This document was registered with the State traffic inspectorate and thanks to it, you do not need to re-indicate the personal data of the buyer, if you can just make a footnote.
When processing sheet E, the deduction procedure is implemented directly. On it, the final tax amount is calculated without it. It is necessary to fill in certain fields to make a deduction when selling a car for less than 3 years. The revenue code is the assigned number for this transaction. It is equal to 1520. These figures mean the profit received from the sale of other property. The adjustment number is also indicated. In the event that this paper is submitted for the first time in the last calendar year, then simply indicate zero. The latest information to be indicated is the OKATO code. It is a number that shows the payer's registration and inspection address. It needs to be recognized individually using the tax service website. To do this, you just need to specify the address or number of the nearest tax.
Simplification of the procedure
How to fill out a deduction when selling a car for less than 3 years, causes difficulties for many people even with detailed instructions. In this regard, the state has developed a specialized system. It is a simple program that bears a logical name for itself - “Declaration”. The download package is kindly provided on the website of the Federal Tax Service.
After unpacking and installing the “Declaration”, it is necessary to draw up the following sections:
- Setting conditions. The section provides information on the type of document, inspection number and adjustment. In the column of the taxpayer attribute is indicated "individual".
- Information about the declarant. It contains passport data, as well as an identification code, OKATO, the address at which registration was made, and a mobile phone number.
- Revenues in the Russian Federation. It shows the information about the buyer, as well as the income and deduction code.
- The total amount paid.
For those who find it difficult to apply for a deduction when selling a car for less than 3 years, a sample fill is always available at the fiscal institution, inspection or on the website of the tax service.