Hello. I write a column on this site about taxes. On this page I have described in detail about the gift tax. I will repeat myself a lot because the comments are asking the same questions. I wrote the same information “from different angles”.

The tax on donating an apartment is personal income tax

There is no separate gift tax. When a citizen was given an apartment as a gift, he received income in the form of its value - pp. 7 clause 1 art. 228 and clause 18.1 of Art. 217 Tax Code of the Russian Federation. Personal income tax should be paid on this income. I have written in detail about the rate below.

Tax on gift of an apartment between close relatives

When donating an apartment between close relatives no need to pay tax. Donors don’t pay tax anyway – I explained why below. Donees are not required to pay tax if they were given real estate by a close relative - clause 18.1 of Art. 217 Tax Code of the Russian Federation.

In what cases are recipients not required to pay tax?

As I wrote above, recipients are not required to pay tax if they the apartment was donated by close relatives- clause 18.1 art. 217 Tax Code of the Russian Federation. And it makes no difference whether the recipient lives in the Russian Federation, what citizenship he has, whether he is a resident or not. If you received an apartment as a gift from a close relative, you never pay tax.

Tax rate

Let me remind you that there is no separate gift tax. When a citizen was given an apartment as a gift, he received income in the form of its value. Personal income tax should be paid on this income.

Personal income tax for residents of the Russian Federation is 13% - clause 1 of Art. 224 Tax Code of the Russian Federation. These are those who have been in Russia for at least 183 days over the past 12 months - clause 2 of Art. 207 Tax Code of the Russian Federation. If it is less, then the citizen is considered a non-resident. Personal income tax for non-residents is equal to 30% of the value of the gift - clause 3 of Art. 224 Tax Code of the Russian Federation. The presence or absence of Russian citizenship does not play any role here. The main thing is the number of days of residence in the country.

From what price of an apartment should tax be calculated?

Personal income tax can only be calculated from the cadastral or market value of the donated apartment - clause 6 of the Review of Judicial Practice, which was approved by the Supreme Court of the Russian Federation on October 21, 2015. In the donation agreement, you can indicate either the cadastral value, or the market value, or not indicate it at all.

If the donation agreement does not indicate the cost of the apartment, then the tax should be calculated from the cadastral value. You can bring a certificate of cadastral value to the tax office and pay 13% from it. For example, an aunt gave her apartment to her nephews, Dmitry and Tatyana. Everyone got 1/2 share. The aunt is not considered a close relative, which means Dmitry and Tatyana must pay tax. The cadastral value of the apartment is 5.2 million rubles. Each tax is 13% * (5.2 million / 2) = 338 thousand rubles.

With market value, everything is more complicated. Donors and recipients do not have the right to enter any value into the contract and tell the tax inspector that this value is market value.

The market value of an apartment can only be determined by an independent appraiser who has a special license for this, is a member of an SRO and has insured his activities. An assessment report costs from 2 to 5 thousand rubles.

If you think that the cadastral value of the apartment is greatly inflated, you can order an assessment. For example, about the same Dmitry and Tatyana. The cadastral value of the apartment was 5.2 million rubles. Before the transaction, she and her aunt contacted an appraiser. He estimated the market value of the apartment at 4.7 million rubles. They included this value in the donation agreement. The assessment cost the recipient 4 thousand rubles. Along with other documents, an assessment report was submitted to the tax office. It turns out that Dmitry and Tatyana will pay: 13% * (4.7 million / 2) = 305.5 thousand rubles. Each person saved 30.5 thousand rubles.

Do not indicate the inventory value of the apartment in the gift agreement

The inventory value is lower than the cadastral and market value. Therefore, many people include this value in the gift agreement in order to pay less tax.

In practice, the inventory value is not accepted by either tax inspectors or courts in the event of a dispute. Even if you manage to pay from it, then after the inspection the inspector will draw up an act to hold the recipient accountable. The act will indicate that the tax should have been paid on the cadastral or market value. Usually with the cadastral register, because it is easier for the inspector to determine it. If the inspector decides specifically on the market, he will first order an assessment and then draw up a report based on it. As a result, the recipient will be charged additional taxes, penalties and fines. If the donee then goes to court, he will not be on his side. As proof, I have inserted several court decisions below. Be sure to read them.

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Taxes accompany our entire lives; everyone makes one payment or another to the state. It is worth understanding the issue of the gift agreement; the tax that the donor and the one receiving the property as a gift will have to pay. Rates may vary depending on who you are presenting to and what.

Property deduction

It depends on the degree of relationship between the parties to the transaction. Namely:

• If it is concluded between people without family ties, a tax deduction is possible.
• The donee pays the tax, so he can receive a refund in the coming year.
• Close relatives. By law, they do not pay personal income tax, and therefore cannot claim a deduction.

As for the donor, he can count on a deduction regarding the purchase of this real estate. And it doesn’t matter whether he gave it as a gift or remained the owner. The maximum amount that can be claimed is 13% of 2 million rubles.

Is it possible to legally bypass the tax?

Of course, it’s nice to receive a gift, but paying a tax of 13% is not very good, especially if there are no plans to sell the property. Inventive citizens have come up with ways to get around paying the tax, at least on the part of the donee. One example is the execution of a purchase and sale agreement instead of a deed of gift. In this case, the transaction is formalized, but in fact the new owner does not have the obligation to pay tax.

This mechanism will only work if the owner has owned the property for 3-5 years (depending on its type). In this case, he will not have to pay. If this period is shorter, then the donor will have to pay income tax, which is unprofitable for him.

Another way is donation. It is used if the transaction is between relatives, but not close enough to exclude tax. In this case, the donation occurs from one close to another. As a result, the property reaches the person for whom it was intended. This scheme is, in general, legal, but do not forget that each subsequent registration of an agreement and transfer of ownership rights requires the payment of a state fee. Of course, this amount will be less than the 13% tax, especially when it comes to real estate.
A rarely used option is the creation of family ties. This refers to a fictitious marriage or adoption. If the parties to the transaction are of different sexes and trust each other, then this option is quite feasible.

Important! Such fraud is not legal, and criminal liability is provided for fictitious transactions. Of course, if the fact of such a transaction is proven. But in any case, it's not worth the risk.

Conclusion

The tax on donated property becomes an unbearable burden for many citizens, but they still have to pay for the right to become the owner of an apartment or car. It is worth understanding that illegal ways to circumvent this rule of law are fraught with punishment, so it is not worth the risk.

The process of donating real estate is associated not only with the execution of such a transaction, but also with the payment of a mandatory tax established by the state. Without knowing this, you can find yourself in an unpleasant situation when a large bill unexpectedly arrives from the tax office, or large penalties begin to accrue, and as a result, the donated real estate is seized.

In practice, there are cases when the process of donation occurs not only between close relatives, but also between strangers. Therefore, those who are going to give their property to someone (donors) and those who are going to accept the gift must have legal knowledge in which cases the tax on the gift of real estate to a non-relative is paid, and under what conditions it is not.

The legislative framework

Before you begin to analyze the situation related to the payment of gift tax, you need to understand what legal acts regulate these legal relations. There are two main ones.

The first is the Civil Code of the Russian Federation, and the second is the Tax Code of the Russian Federation. To these can be added various legal acts that regulate the process and procedure for assessing property, as well as various explanatory letters, instructions, and other legal acts regulating the activities of notaries and government bodies that accept tax payments, but this is not so significant.

The Civil Code regulates the process of concluding a transaction for the gift of real estate, and also determines the circle of close and distant relatives. Close relatives include spouses, children and parents. Distant relatives include everyone else.

Tax code, establishes and regulates the process of payment of the above tax, as well as its amount. In addition, it regulates the timing and procedure of payment.

Gift tax to non-relative

The tax on a gift to a non-relative is specified in Article 224 of the Tax Code. Its formulation is as follows. An individual who has received real estate as a gift, unless he is a close relative of the donor, is required to pay personal income tax. In fact, the state evaluates receiving property as a gift as income and therefore obliges you to pay taxes.

Tax legislation distinguishes between two types of individuals:

• residents;
• not residents.

Residents are understood as persons who spend 183 days a year on the territory of our state constantly (without interruption). The remaining category falls under the concept of non-resident.

Gift tax rate

The Tax Code also establishes the gift tax rate. It is different for different categories of individuals. If the citizen is a resident, then it is 13% of income received A. If a person, on the contrary, is not a resident, then he is obliged to pay a tax to the state in the amount of 30% of the income received.

Particular attention should be paid to how the amount from which the tax is calculated is determined. It is important to take into account that the Civil Code does not require the value of the donated property to be indicated in the deed of gift.

This can happen in two ways:

• cadastral value of a residential property;
• market valuation.

In the first case, after the tax inspectorate learns about the donation transaction, it can contact the BTI with a request in which it will ask to indicate the cadastral value of the residential property. BTI will provide the cost from which the tax will be calculated. In the second case, the donor or the person accepting the gift can contact a special appraiser who gives an opinion on the market value of the property, taking into account the peculiarities of the market and pricing today.

Tax on donating a share to a non-relative

Among the cases of registering a deed of gift for real estate, there are transactions in which the donation of not the entire object, but part of it, occurs. This is not prohibited by law. In order to avoid confusion, there is a letter from the Ministry of Finance of our country No. 03-04-05/206855 dated 2014, which states that in the case of a donation of part of real estate, the process of calculating and paying personal income tax occurs according to to the same algorithm as if a full-fledged real estate object was given as a gift. There is no difference between donating the entire immovable property or part of it.

What is more profitable: donation or sale?

Some lawyers recommend a way to avoid paying gift taxes by executing a real estate purchase and sale agreement without specifying its value. The calculation is based on the current provisions of the law.

There are two types of such transactions:

• the seller has owned the property for more than 3 years;
• the seller has owned the real estate for less than 3 years.

In the first case, no tax will be paid at all. In the second case, tax payment is required, and this happens according to the following scheme:

1. It is necessary to conduct an assessment of the property.
2. Calculate tax. It goes like this. According to current legislation, taxation occurs if the value of the property exceeds 1 million rubles. For example, if an apartment costs 2 million, then 13% will be paid on one million.
3. After completing the transaction, pay tax (it is paid by the seller).

The only disadvantage of such transactions is that it is a fictitious agreement that hides another (donation). If this fact is established, criminal and financial liability arises. You need to remember this and do everything correctly.

When donating, everything is simple, the amount from the valuation of the property is paid.

If we talk about what is profitable, then of course it is better to draw up a purchase and sale agreement, it is much cheaper. At the same time, the recipient of the gift is generally exempt from any tax obligations to the state.

Tax payment procedure

The procedure for paying the above tax occurs differently for residents and non-residents.

Tax payment scheme for residents:

1. Conducting a donation transaction.
2. Establishing the value of real estate.
3. Registration of ownership of donated property with a special government agency.
4. Filling out an income tax return, submitting it to the tax office, and waiting for a receipt to arrive in the mail, which will indicate how much you need to pay and to what details.

The tax payment scheme for non-residents is almost the same as for residents, only there is one nuance. It must be paid before the registration of ownership of the donated property. After the transaction has taken place and the property has been assessed, the non-resident submits a tax return and pays the tax. And after that it registers its ownership.

List of documents required for submission to the tax office:

• citizen’s passport or other document (if the person is not a resident);
• gift agreement and deed of transfer of property (if any);
• cost estimate (or cost document from the BTI);
• tax return indicating the value of the property.

Nuances

The nuances of such transactions include the following cases:

1. In addition to close relatives who are exempt from paying the above tax, consular employees and their relatives are also exempt.
2. The cadastral value that the BTI can provide to the tax office may be significantly overestimated, so you will have to pay more than according to the assessment.
3. If the donor or the one who accepts the gift decides to contact an appraiser, then they should know that he must have a special license giving the right to engage in such activities.
4. When concluding a purchase and sale transaction that “masks” a gift agreement, it is necessary to contact competent lawyers so as not to find yourself in a difficult position if it is recognized as fictitious.
5. Only a court can recognize a transaction as fictitious, so if there is no court decision, and government bodies demand recognition of the fact of donation and payment of tax, their actions can be appealed.
6. For late submission of a declaration on receiving property as a gift (it must be submitted before April 30 of the year following the transaction), a fine of 100 rubles is imposed.
7. The receipt sent by the tax office indicates not only the amount of tax, the details for its payment, but also the period during which it must be paid (if it is violated, penalties will also apply).

Speaking about paying tax on the gift of real estate to a non-relative, you need to know that it is 13% for residents and 30% for non-residents. Its rate is determined by the value of the property, which can be provided by the BTI or given by an appraiser. If individuals want to bypass this fee or reduce it, they need to enter into a transaction for the purchase and sale of real estate, but do so legally.

Real estate (not to a relative or loved one - not so important). What features of payment are there during the preparation and signing of the relevant agreement? You need to know this. After all, not all citizens are required to pay taxes when signing a gift agreement. And if they do this, then they have to find out how the calculations are carried out.

It's quite easy to get confused here. But all the important information is at the same time easy to understand. It is enough to know whether there is a tax on gifting real estate to a non-relative (or to oneself), as well as how much interest on the transaction you will have to pay.

Gift deed

But what is it? In Russia it is extremely common. This is the most popular and common form of transferring property to each other. In practice, the most common cases occur when gifts are given to close relatives.

Gift deed is an agreement between the owner of real estate (or other object) to transfer something into the ownership of the donee. That is, after signing such an agreement, what belonged to you will become someone else's. And from then on, the property will fully pass to the donee. The main feature of this agreement is taxes. When donating real estate (not to a relative or someone from the family), there are several options for the development of events. In addition, property received by gift is not divided during marriage. And it fully belongs to the recipient. That's why many people try to donate real estate.

Close relatives

What is special about this agreement? For example, it has already been said - the procedure and amount of payment of gift tax. The thing is that, according to the law, relatives are completely exempt from this responsibility. This is probably why many people try to give real estate to family members.

Only this feature does not apply to all relatives. There can be many people in a family. Doesn't anyone have to pay taxes? Not at all. For example, there are almost always taxes when donating real estate to a non-relative. But with family everything is much more complicated. Here, citizens belonging to close relatives are fully exempt from payment. Who is this? Highlight:

• spouses;
• children;
• parents;
• grandparents;
• brothers and sisters;
• grandchildren.

Only this circle of persons are exempt from paying taxes when signing deeds of gift. By the way, this rule also applies to guardians, adopted children, stepbrothers and sisters.

Family relationships

Who pays what taxes when donating real estate? This question is extremely simple to understand. You just need to know some of the features of this process. For example, only close relatives are completely exempt from taxes upon signing. Who they belong to is no longer a secret.

What can you say about distant relatives? Here, as you might guess, you will have to pay taxes. According to all the rules that third parties pay. Not everything is so complicated in this system. If, for example, someone wanted to give real estate to their beloved aunt, she would have to pay a certain amount as tax. After all, aunts, uncles and other family members do not belong to the category of close ones. This needs to be taken into account.

Strangers

There is also a tax on the gift of real estate to a non-relative. In most cases, no one is exempt from paying it. With only rare exceptions. Tax on donating an apartment to a relative, third party or loved one can most often cause a lot of inconvenience.

By the way, strangers, when signing a gift agreement (as donees), pay the same amounts as distant relatives in a similar matter. The rules are the same for everyone. However, despite such a simple system, according to which loved ones do not pay, everyone else is obliged, there are more than enough features here. And if you don’t know them, you can get into trouble with the law.

Interest rate

Well, we have already established that almost everyone must pay taxes when signing a gift deed. But in what sizes? How is the amount due for payment calculated? There are some restrictions and rules! There cannot be a single tax for all real estate in the same amounts. Some pay more, some pay less. This is a long-known fact.

That's right. The tax on the gift of real estate to a non-relative, as well as to people not closely related to the owner, has some calculation rules. But no one will tell you the exact amounts. Indeed, according to modern legislation, citizens must pay 13% of their income. It doesn’t matter what it is - an apartment, a house or money. Donees pay taxes in the amount of 13% of the value of real estate or securities. There is also a peculiarity here. And it is at the moment of calculating the exact amount of tax that many people begin to have problems.

Price

Why? This is due to the fact that any apartment or real estate has two prices. Cadastral and market. The first, as practice shows, is much lower. And therefore, many do not know from what amount the 13% tax is calculated.

If you believe the laws, then you only need to take into account the cadastral value. Even the Supreme Court of Russia ruled this way. But the tax services think differently. After all, the market value, as already mentioned, significantly exceeds the cadastral value. In fact, the tax will be several times higher.

A little advice - indicate real estate in the gift agreement. And calculate taxes based on this amount. If they do not accept your tax return or force you to recalculate it at market value, do not agree to this step. It is illegal. Tax on the gift of real estate to a non-relative or distant relative is paid only in the amount of 13% of the cadastral value of the gift. And nothing more. Everything else is a direct violation of the legislation of the Russian Federation. You will have to defend your rights in court. But under no circumstances should you agree to a recalculation.

Pensioners

These are the features of paying taxes on the gift of an apartment, house and other property in Russian legislation. The surprises don't end there. Why? It's no secret that pensioners have their own peculiarities in paying any taxes.

But not when it comes to gifts. With this development of events, no one is exempt from taxes. Despite the fact that in Russia older people most often do not pay such contributions, they will have to do so when signing a gift agreement. There are no special features here. It turns out that even pensioners are required to pay 13% of the cadastral value of real estate. There is nothing difficult to understand here.

Exceptions

There are almost always exceptions to the rules. But in practice they are extremely rare. As already mentioned, the tax on the gift of real estate to a non-relative is AND it is paid in full by the donee. Even for pensioners there are no benefits in this regard.

There is only one small exception. The point is that, according to the agreement, various consular employees are completely exempt from paying gift tax. And their families too. Perhaps this is the only exception to the rule. But, oddly enough, it is very rare.

How to pay

The tax payment procedure also plays an important role in this process. It often happens that many simply have no idea what documents will be required by the tax authorities, and are also not aware of the deadlines for filing the relevant declaration. In fact, it is not as difficult as it might seem.

All taxes are paid (and relevant documents are submitted) by April 30 of the year following the transaction. That is, if the donation occurred in 2014, the report and payment are made in 2015 until April 30. The documents required for this are not too extensive. The list is small, but preparing a tax return can be time-consuming. So, prepare:

• declaration 3-NDFL;
• passport;
• (required from Rosreestr);
• direct gift agreement;
• acts of acceptance and transfer of apartments (not necessary, but desirable).

With these documents you can go to the tax office and submit a declaration. Nothing difficult, right? In order to correctly fill out 3-NDFL, you must use a deed of gift, certificates from the BTI with the value of (cadastral) real estate, the taxpayer’s INN (that is, yours) and passport data. As you can see, there are no special features in this process. True, you also need to know the initials of the donor. It is indicated in the declaration at the very beginning. As you can see, donating an apartment to a non-relative is taxable. And it will amount to 13% of the cost of housing.

The deed of gift, as one of the types of legal transactions, is subject to the taxation system enshrined in current Russian legislation. Since this transaction is completely voluntary and free of charge, the obligation to pay taxes is removed from some categories of citizens, in particular, from close relatives of the donor and consulate employees. For other persons who are not related, filing a tax return and paying a certain amount from the income received (gift) is considered mandatory.

Taxes when donating real estate to a non-relative are calculated based on the amount that a person would have spent on independently purchasing a real estate property, that is, when purchasing with personal funds. Therefore, the stage of determining the price is also important during registration.

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How is the income tax of a donated apartment calculated?

The amount of income tax is calculated from the value of the donated object, and the easiest way is when it is determined by the donor himself, recording it in the gift agreement. But it is important to point out that reducing the tax rate by indicating a very low price in the document is a bad idea. The tax authority is well aware of such nuances and, if it is found that the price is too low, the recipient will be required to pay tax based on the market valuation of the donated real estate. Moreover, such a plan can be disastrous for both parties in the event of litigation involving the donor and recipient.

In the event that the donor has not indicated the price of the gift in the deed of gift, the responsibility to find out it and calculate the amount of the deduction rests entirely with the receiving party. It makes sense to take not the market value, but the cadastral value, which is indicated, first of all, in the cadastral passport of the object. However, if this document was issued more than five years ago, it means that the information about the cost in it is no longer relevant, and you need to make an official request to Rosreestr for a certificate of the cadastral price. Such a certificate is issued free of charge to anyone who wants it; they just need to present their personal passport and give the exact address or cadastral number of the property of interest.

When the cadastral price is too high, which also happens, you have the opportunity to contact an independent licensed appraiser and challenge it. Moreover, according to the law, it cannot be higher than the market price.

Establishing the degree of relationship

When donating any type of real estate, taxes are required to be paid not only by complete strangers, but also by distant relatives of the donor. In the ranks of distant relatives there are such persons as:

Since distant relatives are not exempt from paying tax and pay in the same way as third parties, they do not need to confirm family ties. At the same time, this is extremely important for close relatives.

Birth certificates, legal marriage certificates, adoption documents, personal passports with appropriate marks in them, and so on serve as confirmation.

The tax on real estate donated of any type is always paid by the receiving party. The donor himself is freed from any financial obligations, since he gives away his real estate free of charge. Accordingly, no penalties are provided for him if the donee does not pay tax on the gift.

What is the tax on donating an apartment to a non-relative?

In Russian legislation, preferential conditions are provided exclusively for the donor’s closest relatives, therefore distant and non-relatives are absolutely on an equal footing in this matter. The tax on donating real estate to a non-relative in Russia is 13% of the total assessed value of the gift. However, if the donee is stateless or is a citizen of another state, that is, not the Russian Federation, for him this amount is 30%.

Considering the cost of real estate, we can immediately say that these are quite significant amounts, so you should be prepared for large expenses, despite the fact that you are receiving a gift.

On what value of the object is the tax calculated?

As already mentioned, the tax on the gift of real estate will be determined based on the value of the gift: either indicated in the gift deed itself, or in the market, or cadastral. That is, if the price of a donated land plot is 4 million rubles, it is from this that 13% is deducted to the state or 30% from non-residents.

Moreover, no one from the category of beneficiaries is exempt from paying in this case. This means that the obligatory single percentage is withdrawn from pensioners, and from disabled people, even the first group, and from minors, and so on. Everyone must pay in full.

In accordance with Chapter 23 of the Current Tax Code of the Russian Federation, there is no single document on the basis of which the amount of taxation is based. The donation of any real estate itself is recognized as the receipt of income by individuals.

Procedure for paying real estate gift tax

According to the current rules, the procedure for paying tax in a gift transaction includes calculating the amount of personal income tax, filling out and submitting a declaration to the Federal Tax Service, as well as the actual fact of payment before the due date. You can submit the declaration in person by filling out a form issued by the responsible employee or entrusting this task to a specialist for a fee, as well as in electronic format via the Internet from the official website of the tax authority.

Documents for filing a declaration

Of course, one declaration in form 3-NDFL to the tax service is not enough. In order to correctly pay the tax on the accepted property, the following documents must be attached:

• Personal passport of the donee (payer);
• Taxpayer identification number;
• The real estate gift agreement itself;
• The act of acceptance and transfer of the object, if it was issued (optional);
• Confirmation of acceptance of the gift (this may be a title document, an extract from the Unified State Register of Real Estate);
• A document on the basis of which the value of the object is indicated (for example, a certificate from Rosreestr about the cadastral value).

This is a standard list; as a rule, nothing additional will be required from you in this case.

Where can I pay tax?

The recipient, who is not a relative of the donor or is a distant relative, undertakes to pay the calculated tax when donating real estate on time and immediately in full. When submitting a 3-NDFL declaration in person to the territorial office of the Federal Tax Service, the employee responsible for its receipt will give you a receipt with payment details in the form of a paper document. This receipt may be mailed to you after your submission has been reviewed.

If you have lost your details or under any other circumstances, you can view them on the official website of the tax service, which was mentioned above. Please note that you need the details of your territorial branch of the Federal Tax Service. With the details in hand and knowing the required payment amount, go to any bank to pay.

Deadlines

Regardless of the deadline for accepting a deed of gift for real estate, a completed tax return must be submitted by April 30 of the following year. Moreover, it must be submitted even if there is nothing to pay. Failure to comply with these requirements will result in penalties and fines.

There is a time interval between filing the 3-NDFL declaration and directly paying the tax on property donated to a non-relative. That is, it is not necessary to rush between property and the tax burden at the same time. The agreed amount for donation must be paid before July 15 of the same year when the declaration was submitted.

Tax deduction

The amount of taxes under a real estate gift agreement that has entered into force for the average Russian citizen is still quite high. Even if we take as an example a simple one-room apartment worth 920,000 rubles, the Federal Tax Service will have to pay 13% of this amount for it, that is, 119,600 rubles. For this reason, many are interested in the possibility of applying for a tax deduction, which allows them to return part of this money after payment.

This is done by contacting the Federal tax authority at your place of residence. An application is written, to which is attached a 3-NDFL declaration, title papers, a gift agreement, a property valuation act, and expense receipts. Since the process is quite delicate, you may not be able to figure it out on your own, so it is better to immediately consult with a lawyer experienced in such matters.

Fine for non-payment

To understand what kind of fine you may face if you fail to pay or submit a declaration, let’s consider three types of administrative offenses on the part of the donee.

Situation	What are the consequences
The receiving party is a close relative of the donor, and submits the declaration later than April 30	Fine in the amount of 1000 rubles (Article 119 of the Tax Code of the Russian Federation).
The donee, a distant or non-relative, fails to submit a declaration on time	If applying independently, 5% of the assessed value of the property for each missed month, but the final fine cannot be more than 30%. If you were brought to justice on the initiative of the Federal Tax Service - 20% of the value of the gift. In case of intentional evasion - 40% of the price of the donated property. In addition to the tax and fine, a penalty in the amount of 1/300 of the refinancing rate. When donating an object for which the tax value exceeds 600 thousand rubles, you may incur criminal liability for overdue time.
3-NDFL has been submitted, but the amount has not been paid by July 15	1/300 of the national bank's refinancing rate for each day of late payment.

Is it possible to avoid paying real estate gift tax?

It should be noted right away that it is legally impossible to avoid paying taxes on any type of real estate donated by law, unless you took care of this in advance, before completing the transaction itself. In this situation, we are talking about legal, but very difficult methods in terms of time and additional funds.

The first thing that comes to mind for many citizens is the execution of an imaginary purchase and sale transaction. The bottom line is that the donor acts as a seller, selling the real estate to a distant or non-relative who, as a buyer and not a recipient of income, is exempt from taxation.

The tax burden falls on the seller, but if the property sold was owned by him within the last three years (or five years if ownership arose after 2016), you can later apply for a tax deduction and get your money back. This is not an easy scheme, and it is better to obtain legal support.

The second option is easier to understand. If you want to give an object to a non-relative or, more often, to a distant relative with whom you have a common relative who is legally close to you, you can do two transactions. For example, you want to give a house with a plot to your niece, but you don’t want her to pay a huge tax (in this case, for both the house and the land), you can first give them to your niece’s parent (your brother or sister), who will give them them further to their daughter. Thus, no one will pay tax.

Is it possible to refuse a gift?

Despite the fact that the object of the gift agreement is a gratuitous gift, it is still a transaction in which there are two parties: the donor and the receiving party. Since real estate is required to pay tax, and administrative or criminal liability is provided for failure to comply with this rule, you cannot give a person anything against his will. In other words, there must be consent to the transaction from both parties - the donor voluntarily alienates his property, and the donee voluntarily accepts the object.

Just as there is a right to accept a gift, there is also a right to refuse it, which is enshrined in Article 573 of the Civil Code of the Russian Federation. The refusal must be issued exclusively in writing and in the presence of a notary. The reason for the refusal may not be stated, but the refusal is always complete; it is impossible to partially accept anything.

However, it is important to keep in mind that if you refuse, the donor has the right to demand financial compensation from you for the losses that were caused to him by your decision.

Taxes when donating a share of property

According to the law, a deed of gift can be issued not only for all taxable real estate in general, but also for its share. This is true not only in the case when the donor owns only part of the property, but also when he simply wants to transfer only this part or donate several parts to several persons.

When accepting a share of property, you will accordingly have to pay tax on the gift of this share of real estate. For example, the owner alienates half of his apartment to you free of charge. The cost of the apartment is 2.5 million rubles, which means the price of half of it is 1 million 250 thousand rubles. Having accepted such a gift, you will be required to pay 13% of these 1,250,000 rubles (if you have Russian citizenship), or 30% (if you are a non-resident).

Give or sell: the risk of a fictitious transaction

Referring to Article 170 of the current Civil Code, the law defines the concept of a fictitious transaction regarding real estate. This is essentially the trick mentioned above to avoid paying taxes on a gift deed.

If the farce becomes known, the deal may be declared invalid. That is why it is so important to approach this issue very carefully and seek the help of legal specialists in order to minimize the risk and, if possible, avoid it altogether. This is especially important when, during the execution of such a fictitious transaction, someone’s rights are infringed, which becomes the reason for going to court.

However, besides the fact that your negligence may cause the cancellation of contracts, the law does not provide for any legal consequences for this violation. In fact, everything is simply returned to its place, that is, the property is returned to its original owner (donor-seller).

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