If I sold an apartment cheaper than I bought it, do I have to pay tax? If you sell an apartment for less than you bought it for.

The Federal Tax Service has clarified the procedure for obtaining a property tax deduction when selling an apartment. In connection with receiving income from the sale of an apartment owned for less than three years, the owner must file a declaration and pay tax. You can reduce the amount of income by the amount of documented expenses associated with its receipt. If the expenses turned out to be higher, you will not have to pay tax due to the lack of a tax base.

The Federal Tax Service has clarified the procedure for obtaining a property deduction when selling a home. In connection with receiving income from the sale of an apartment owned for less than three years, the owner must file a declaration and pay tax. In this case, you can reduce the amount of income by the amount of documented expenses associated with its receipt. If the expenses turned out to be higher, you will not have to pay tax due to the lack of a tax base.

This is stated in the Letter of the Federal Tax Service of the Russian Federation for Moscow dated December 31, 2010 N 20-14/4/138478@. It deals with the following situation. In 2008, an individual, under a preliminary agreement, purchased an apartment in an unfinished building. The deadline for its delivery was postponed to December 2010. The fiscal department explained the procedure for obtaining a tax deduction for the subsequent sale of this apartment:

Providing a property tax deduction is associated with the presence of expenses for new construction or the purchase of an apartment...

If the apartment was subsequently sold by the taxpayer, such actions do not change the fact that expenses for its acquisition were incurred...

If in a tax period the property tax deduction cannot be used in full, the remaining part of the property tax deduction can be provided to the taxpayer in subsequent tax periods, regardless of whether the apartment (in whole or in part) is owned by the taxpayer during these periods or not.

In accordance with the provisions of articles and paragraph 1 of Article 224 of the Tax Code of the Russian Federation, income received by tax residents from the sale of real estate (including apartments) is subject to personal income tax taxation at a rate of 13%.

It often happens that a new product line is launched before the old product is completely sold out. Or simply the demand for the product has decreased significantly, or maybe the company is developing a new market segment. And then the goods are sold at greatly reduced prices. But many accountants are afraid to reduce the sales price below the purchase price, since this is allegedly prohibited by law and is fraught with additional taxes. Let's see if this is actually true.

Concern 1. Selling below cost is prohibited by law.

In general, the contracting parties determine the price of the goods themselves. An exception is prices that are regulated by the state, for example in the field of electricity, gas supply, communications<1>. So for a regular contract, there is no lower price limit on the part of the Civil Code. The main thing is that this price suits both parties.

The Federal Antimonopoly Service also monitors prices to prevent abuses by “big players” in the field of pricing. However, companies that are not able to influence the price situation on the market through their actions alone or with a group of other companies have nothing to fear<2>.

Note. In 2013, the FAS prepared amendments to the Law on Trade Activities, advocating a ban on sales at a price below cost, but the project did not find support in the government, was sent for revision and has not yet even reached the State Duma.

Conclusion

If your company does not have a decisive influence on pricing in the market and does not sell goods whose prices are regulated by the government, then the lower price limit is not limited.

Concern 2: Loss from selling below cost is not taken into account for tax purposes.

Let's say right away that this is not so. The tax base for profits is calculated cumulatively for all transactions<3>. And only if a special procedure for calculating the tax base is established, income and expenses for these operations are considered separately. For example, a special procedure is provided for transactions with securities<4>. In addition, there is a direct prohibition on recognizing in expenses the price difference between the market price and the price of selling the goods to the employee. If you sold a product to an employee at a non-market price, which is even lower than the purchase price, then it is obvious that such a price difference is formed and, in fact, it represents a loss when selling below cost<5>.

But for other sales and purchase transactions at a loss, there are no special rules. Therefore, schematically it looks like this: income from all transactions is summed up and all sales expenses recognized in the reporting period are subtracted from the resulting amount.<6>. Obviously, revenue from a loss-making transaction will be recognized in sales revenue along with revenue from other sales, and expenses on it will be recognized along with expenses on other transactions. If you do not systematically work in the red, then it is generally unrealistic to detect unprofitable trades. They will simply drown in the general mass, and they will not be visible in the income tax return<7>.

With the “profitable” simplification, selling at a loss does not in any way affect the amount of tax: how much money you received for the product is calculated from that amount<8>. If the simplification is “income-expenses”, then even in this case it is not so easy to track a loss-making transaction; income and expenses on it may generally fall into different reporting and even tax periods. After all, expenses are recognized as the goods are paid to the supplier and sold, and income is recognized upon receipt of money from the buyer<9>. When selling goods to employees, the price difference between the retail price and the sales price is also not included in expenses.

Conclusion

It is unlikely to track a losing trade if you do not systematically work in the red. It is unlikely that the tax authorities will deal with this, because the loss from sales, if the goods are sold to non-employees, is still taken into account for tax purposes.

Concern 3. If the sales price is lower than the purchase price, tax authorities assess additional taxes based on the market price

There is some truth in this judgment. It all depends on whether such a transaction is controlled. Let's say you sold apples at a price lower than the purchasing price of a third-party Russian company. Then you can safely look the inspector in the eye, since the price of the transaction between parties that are not dependent on each other is initially considered to be market price<10>. That is, tax authorities will not check your prices for compliance with their market prices. Simply because this type of verification is provided only for controlled transactions, and transactions between non-interdependent Russian organizations are not controlled<11>.

Note. “What about Article 40 of the Tax Code?” - you ask. Despite the fact that the notorious Art.40 of the Tax Code on market prices has not yet been repealed; its effect has been significantly narrowed: it applies only to those transactions for which income and expenses were recognized before 01/01/2012. That is, at the moment, tax officials can try to recalculate taxes based on market prices only if the “sale” took place in 2011, since 2010 and earlier periods can no longer be covered by the on-site audit scheduled in 2014 G.<12>

But if you sold a product at a non-market price and such a transaction is controlled for you, for example, you sold apples for mere pennies to your subsidiary on OSNO, the amount of income from transactions with which exceeded the uncontrollable threshold (in 2013 - 2 billion rubles, in 2014 - 1 billion rubles)<13>, then in this case you will have to<14>:

<или>during a “price” audit, prove to the tax authorities that the apples were impossibly sour and the transaction price falls well within the range of prices at which such goods are sold by non-dependent persons<16>. If the tax authorities nevertheless consider that the prices were not comparable with the market ones, then after a “price” check they will go to court to collect arrears and penalties for income tax and VAT<17>. And if the income from the transaction relates to 2014, then the tax authorities may also impose a fine in the amount of 20% of the amount of unpaid taxes<18>.

We tell the manager

If the seller independently calculates and pays taxes at the market price on income from a controlled transaction, then the buyer will not be able to recalculate the tax base downwards. After all, he will have such a right only if, after checking prices and paying the arrears by the seller, the buyer receives a notification from the tax authority to make symmetrical adjustments<20>.

But transactions of sellers under the simplified taxation system are not subject to price control, since such organizations do not pay either income tax or VAT, for which additional charges are possible during “price” checks<19>.

Conclusion

The statement that taxes will be recalculated based on market prices is only partly true. It all depends on whether the transaction is recognized as controlled. If yes, then you will have to prove to the tax authorities that the transaction price is comparable to the market price. If not, then there is no need to worry about additional charges.

Concern 4. Expenses for the purchase of goods sold at a loss are economically unjustified, and therefore cannot be taken into account when calculating income tax

Every commercial organization, by definition, strives to make a profit.<21>. However, one-time losing trades also fit into this concept, because the desire to systematically make a profit is fraught with risk and does not exclude a loss. In addition, by selling today at a low price, the company insures itself against increased losses in the future, so management assesses the profitability of the deal at the current moment.

Note. In what cases transactions between interdependent persons are not considered controlled, you can read in the article “On interdependence and controllability frankly”: Civil Code, 2013, No. 21, p. 66

The Tax Code does not give tax authorities the right to assess how effectively capital is managed, and therefore the concept of “economic feasibility of expenses” must be considered through the focus of expenses on generating income<22>. And in the example with apples, the costs of purchasing goods were economically justified, because, firstly, they were not purchased for a charity event, but were going to sell them successfully, with a profit. Another thing is that circumstances have changed somewhat and now it is much more important to release working capital frozen in an unsuccessful batch of apples. And secondly, they still received income, because there is some kind of income<23>. And no one is insured against losses<24>.

To confirm the validity of your expenses, you can do the following. First, the manager must issue an order to mark down goods. Secondly, the markdown must be justified. For example, you can attach to the order the conclusion of a merchandise expert or sales manager that the apples are from last year’s harvest, it is impossible to store them for more than 1 month in the conditions of your warehouse, and in case of loss of marketable condition, the losses from write-off will be much higher, etc. In any case, the justification must indicate for what purpose and why you decided to take a losing trade. All this will help you strengthen your position in the event of a dispute with the tax authorities.

Conclusion

Expenses will be economically justified if they were aimed at making a profit. The end result is not decisive.

Concern 5. If goods are sold at a loss, then VAT cannot be deducted on them

Tax authorities are inclined to see an unjustified tax benefit in a loss-making transaction, since the deduction for the acquisition was greater than the sale of the goods. And all because the reasonable economic goal of concluding a reduction in the amount of tax accrued in a regular transaction is not at all obvious to the tax authority. And as we remember, its absence is one of the signs of receiving an unjustified tax benefit<25>.

Therefore, just as to justify expenses, you need to stock up on arguments in your favor in advance. The same documents will do: orders from the manager, conclusions from merchandising experts, financiers, etc.

In legal disputes, the case is resolved in favor of the taxpayer if he provides the court with evidence of the existence of a reasonable economic goal that was pursued when concluding a loss-making transaction<26>. But if there was no such goal, and by all indications the organization is a participant in the tax scheme, then do not expect mercy from the tax authorities. In addition to the unobvious economic purpose, controllers will identify other signs of receiving an unjustified tax benefit, for example, the inability to fulfill the contract. For example, an organization purchased a batch of goods, but where it was stored for a whole month is unclear, since the organization neither owns nor leases warehouse premises, and although a custody agreement was concluded, it was not fulfilled<27>.

Conclusion

A tax benefit in the form of a VAT deduction for goods sold at a loss can be justified if the organization proves that when concluding a loss-making transaction it pursued a reasonable economic goal, for example, to avoid even greater losses from the complete write-off of the goods. But if the goods were sold only on paper and there were no real transactions, then the tax authorities will remove such deductions.

* * *

So, of all the concerns considered, the most realistic is the removal of expenses and deductions. To prevent this from happening, prepare justification for expenses in advance. And if, God forbid, you are a participant in a tax scheme, then fake documents alone without real transactions are unlikely to help you.

<1>clause 1 art. 424 Civil Code of the Russian Federation; clause 1 art. 4, Art. 6 of the Law of August 17, 1995 N 147-FZ; subp. 4 clause 2, clause 4 art. 8 of the Law of December 28, 2009 N 381-FZ

<2>Part 1 Art. 5, part 1 art. 7, clause 1, part 1, art. 10 of the Law of July 26, 2006 N 135-FZ

<3>clause 1 art. 274 Tax Code of the Russian Federation

<4>clause 2 art. 274, art. 280 Tax Code of the Russian Federation

<5>clause 27 art. 270 Tax Code of the Russian Federation

<6>clause 1 art. 247, sub. 3 clause 1, clause 3 art. 268 Tax Code of the Russian Federation

<7>clause 2 art. 268 Tax Code of the Russian Federation; Letter of the Ministry of Finance dated September 18, 2009 N 03-03-06/1/590

<8>clause 1 art. 346.15, paragraph 1 of Art. 346.17, paragraph 1 of Art. 346.18 Tax Code of the Russian Federation

<9>clause 1 art. 346.15, subd. 23 clause 1 art. 346.16, paragraph 1, sub. 2 p. 2 art. 346.17 Tax Code of the Russian Federation; Letter of the Ministry of Finance dated October 29, 2010 N 03-11-09/95

<10>clause 1 art. 105.3 Tax Code of the Russian Federation

<11>clause 1 art. 105.17, paragraph 1 of Art. 105.14 Tax Code of the Russian Federation

<12>clause 4 art. 89 Tax Code of the Russian Federation

<13>subp. 1 item 2 art. 105.14 Tax Code of the Russian Federation

<14>clause 4 art. 105.3 Tax Code of the Russian Federation

<15>pp. 3, 6 tbsp. 105.3 Tax Code of the Russian Federation

<16>subp. 1 clause 1, clause 3 art. 105.7, paragraphs. 1, 7 tbsp. 105.9 Tax Code of the Russian Federation

<17>clause 5 art. 105.3, sub. 4 p. 2 tbsp. 45 Tax Code of the Russian Federation

<18>clause 1 art. 129.3 Tax Code of the Russian Federation; clause 9 art. 4 of the Law of July 18, 2011 N 227-FZ

<19>subp. 1, 4 p. 4 tbsp. 105.3, paragraph 2 of Art. 346.11 Tax Code of the Russian Federation

<20>clause 1 art. 105.3, paragraphs. 1, 2 tbsp. 105.18 Tax Code of the Russian Federation

<21>clause 1 art. 50 Civil Code of the Russian Federation

<22>Art. 252 Tax Code of the Russian Federation; Definitions of the Constitutional Court dated December 16, 2008 N 1072-O-O (clause 2 of the motivational part), dated June 4, 2007 N 366-O-P (clause 3 of the motivational part), dated June 4, 2007 N 320-O-P (clause 3 motivational parts)

Last updated January 2020

If you sold your car for more than you bought it, then you made a profit, which means you must pay personal income tax at a rate of 13%. In what case is a 3-NDFL declaration submitted to the local tax office and tax on the sale of a car is paid? It depends on the date of purchase:

Owned for less than 3 years— the declaration is mandatory (the filing deadline is from January 1 to April 30 of the following year), tax rate 13% . Even if there is no income (the tax amount will be 0 rubles), that is, a “zero” declaration is submitted.
Owned for more than 3 years, according to documents confirming this (copy of PTS, purchase and sale agreement, certificate of inheritance, etc.). Then the declaration is not filed and tax does not have to be paid.

What does owned mean? less than 3 years? Three years (36 months) are counted from the date of the vehicle purchase and sale agreement (donation, inheritance certificate), and not registration with the traffic police. If 36 months have passed, then there is no obligation to submit a declaration.

How and what tax is the sale of a car subject to in 2020? The calculation of personal income tax in these years is the same; there are no new changes in legislation on this issue yet. Except for non-residents, which we’ll talk about a little later.

When do you not have to pay tax?

if the car is sold cheaper than purchased;
the car has been in your possession for more than 36 months;
The car was sold for less than RUB 250,000. (only 1 car per year).

Examples of how tax is calculated if the car was owned for less than 3 years

Sold a car (less than 3 years of ownership) for less than 250,000 rubles. The declaration must be submitted. But no tax is paid, since 250 thousand rubles is a non-taxable amount (the amount of property deduction).

Example: A citizen purchased a car in 2018 for 500,000 rubles and sold it in 2019 for 230,000 rubles. (since the transport was in disrepair). There are documents confirming the purchase and the sale amount (receipt agreements). A car is sold for less than the purchase price - there is no income, there is no tax base.

The car was sold for more than 250 thousand rubles and more than the purchase price, there are documents. The tax base is calculated from the difference between the purchase price and the sale price.

Example: A citizen purchased a car for 900,000 rubles, and a year later sold it for 1,150,000 rubles. The tax amount will be (1,150,000-900,000)*13%=32,500 rubles.

The car has been owned for less than 3 years, was sold for less than purchased, there are supporting documents. The declaration is submitted, but since there is no income, you will not have to pay tax.

Example: A citizen purchased a car in 2018 for 450,000 rubles and sold it in 2019 for 420,000 rubles. There is a purchase agreement and documents for sale. There is no tax base (sale price is lower than purchase price).

A car was sold for more than 250 thousand rubles, but there are no documents proving the purchase price. The declaration is submitted, tax is paid on an amount exceeding 250 thousand rubles.

Example 1: A car was purchased for 600 thousand rubles, sold for 500 thousand. The car was sold cheaper, but since there are no documents for payment upon purchase, tax will have to be paid. Its amount will be 32,500 rubles. (500 thousand rubles - 250 thousand rubles)*13%.

Example 2: A car was purchased in 2018 for 350,000 rubles, sold for 400,000 rubles. in 2019. If there are purchase documents, then tax is paid on the difference (400,000 - 350,000) * 13% = 6,500 rubles. If there are no documents confirming payment upon purchase, then the tax amount upon sale of the car will be (400,000 - 250,000) * 13% = 19,500 rubles.

A tax deduction in the amount of 250 thousand rubles can be used once a year. This should be taken into account when selling multiple cars in the same year.

Example 1: A citizen sold 2 cars in 2019, one for 120 thousand rubles, the other for 100 thousand (both less than 3 years of ownership). There are no documents for purchase. Since 100,000+120,000 rub. = 220,000 rub. less than a tax deduction (RUB 250,000), a declaration is submitted, but tax is not assessed or paid for any vehicle.

Example 2: A citizen sold a car for 350 thousand rubles in 2018; there are no documents confirming the purchase amount. He took advantage of a tax deduction of 250 thousand rubles. in 2019, paying (350 -250)*13%= 13,000 rubles. And next year 2020 he is also selling a car that has been owned for less than 3 years. You can also count on a deduction of 250 thousand rubles.

One declaration is submitted for the entire volume of sales in the tax year. That is, not for each vehicle separately. But income and deductions/expenses are accounted for on a separate line for each transport separately.

Example: A car owner sells a Volvo in 2019 for 300,000 rubles, which he previously purchased for 200,000 rubles. and Mercedes for 1,000,000 rubles, purchased for 1,100,000 rubles. For the first car, you can use the property deduction and the tax will be 6,500 rubles. ((300,000 - 250,000)*13%), and for the second car the tax is “0”, since the car was sold cheaper than it was purchased, there is no income.

Important! For the seller, the basis for reporting to the Federal Tax Service on the income received is the date of the contract and receipt of income from the sale of the car, and not the date of re-registration of the vehicle to the new owner in the traffic police. And although the date of the sales contract, the date of registration with the traffic police, and the transaction amount are transferred by the traffic police to the tax service only after the car is registered, the seller’s obligation to file a declaration and pay tax (if a profit is made) arises from the date of the contract and receipt of proceeds from the sale.

If the owners of the transport are more than one person, then the deduction between them is distributed in proportion to their shares in the property.

What to do if documents confirming the purchase and sale of a car are missing/lost?

Data on the transaction amount is received by the Federal Tax Service from the traffic police. When checking a declaration, the tax inspector checks the taxpayer’s data with the data of the traffic police. At the local level, issues in the event of the absence/loss of a purchase and sale agreement confirming the amount of expenses when buying a car or the amount of income when selling are resolved differently. And to successfully resolve the problem you can:

if you remember exactly the amount of the transaction, simply submit a declaration without supporting documents and wait for the results of the desk audit. If your Federal Tax Service has any questions or discrepancies, you will receive a notification to provide supporting documents.
contact the tax office and clarify on the spot: if you do not provide supporting documents, will it be enough to attach a covering letter to the declaration with a request to confirm the amounts indicated in the declaration according to the traffic police about this transaction due to the loss/lack of documents.
a written request to the traffic police MREO for the issuance of a copy of the purchase and sale agreement confirming the amount and date of the transaction. To do this, an application is written to provide a copy of the policy. Attach a copy of your passport to it, indicate the information you know about the transaction (date, information about the car and the seller/buyer). This should not be refused, since you are a party to the transaction and are asking for a copy of the document, not the original.

What documents confirm payment and are attached to the declaration?

Documents that confirm payment for the purchase of a car include:

If payment is made in cash between individuals. A purchase and sale agreement and a receipt from the seller for receipt of money are sufficient. If there is no receipt, then the specified amount and the phrase in the agreement “all payments have been made in full” are sufficient for the tax office.
The car was purchased from an organization or individual entrepreneur. Contract of sale. In this case, indicating in the contract the phrase about fully made payments is not enough. Payment documents (cash register receipt or payment order) must be attached. Since organizations and individual entrepreneurs are obliged to accept funds only against payment documents.

Other expenses that can be taken into account to reduce your tax base

Also included in the cost of purchasing a car are other payments associated with the purchase.

Payment for search and selection services, checking the legal purity of the transaction and assistance in drawing up documents.

There are specialized organizations or individuals who help you find a suitable car. They check the technical condition, transport the vehicle from the seller to the buyer (when the parties to the sale and purchase live in different cities), draw up the contract and related documents, etc. The buyer bears the costs of these services, issuing a notarized power of attorney in his name, etc. These costs are confirmed by both agreements between the buyer and the contractor, as well as payment documents (receipts, cash receipts, etc.).

Tax paid by the donee

This refers to the personal income tax paid when receiving a car as a gift (if the donee and the donor are not close relatives). The amount of personal income tax is recognized as expenses in connection with the purchase of a car and is confirmed by payment documents and a tax return.

Expenses when inheriting a car

State duty paid for obtaining a certificate of inheritance of a car. As well as the cost of assessing the vehicle, which is necessary to determine the amount of the notary’s fee. Expenses are confirmed by payment documents.
For example, the citizen received a car according to his will. The cost of the car was 5 million rubles. and to obtain a certificate of inheritance they were paid an assessment in the amount of 15,000 rubles. and a fee of 30,000 rubles was paid. No later than 3 years from the date of inheritance, the heir sells the car for 3 million rubles. The seller of a car can reduce the tax base to RUB 2,950,000. (3 million – 30,000 rubles – 15,000 rubles).

expenses for paying state duty upon state registration of transport in MREO;
actual purchase costs, customs payments when buying a car abroad.

What expenses cannot be taken into account?

There are expenses that cannot reduce personal income tax in any way:

interest on loans for purchasing a car;
car insurance(MTPL, CASCO, driver and passenger health);
payment of debts for the testator upon (after) inheriting a car;
remaining debt for the purchased car as future expenses.

For example, a citizen purchased a car in 2019 for 1.5 million with an installment plan for three years. Each year he must pay 500,000 rubles. Having paid 1 million rubles, in 2020 the owner sells the car for 1.6 million. Thus, the owner actually paid 1 million for the car and at the time of sale owed the seller 500,000 rubles. When calculating tax, only 1 million rubles can be accepted as expenses. Accordingly, the personal income tax amount will be equal to: 78,000 (1.6 million - 1 million x 13%) rubles.

The important fact is whether the car was involved in business activities

Any expenses of an individual entrepreneur, or a car owner who does not have the status of an individual entrepreneur, but actually used the transport as a commercial one.

When a citizen who is not an entrepreneur buys a commercial vehicle (bus, truck), but uses it for himself, then the costs of purchasing such a vehicle are accepted to reduce personal income tax.

Repair and refurbishment costs

The question of offset remains controversial costs for operational repairs and re-equipment/retrofitting car (installation of gas equipment, air conditioning, etc.). Among tax authorities, this question raises different opinions:

In some cases, the inspection considers that the repair is not related to the purchase and is not an expense.
Others believe that additional equipment leads to an improvement in the consumer properties of the car and increases its selling power. Therefore, it refers to expenses taken into account when calculating personal income tax.

If the car improvements were expensive and are documented, then you can fight for your right.

Taxation of non-residents

Individuals (whether foreigners, or citizens of the Russian Federation, or stateless) who are absent from the territory of the Russian Federation for more than 183 days in one calendar year, are considered non-residents.

They have a heavier tax burden. They must pay income tax at a rate of 30%.

But for them it’s a habit 3 years. Therefore, if the car was owned for less than 36 months, you will have to pay a hefty tax (than in similar cases a resident pays). And if more, no tax.

But non-residents cannot apply the rules for deduction (25 thousand rubles) and use of expenses (reducing the cost of sale by the cost of an early purchase). This privilege is only for residents of the Russian Federation.

When to file a return, tax payment deadlines

In the year the car is sold, nothing is declared or paid. The obligation to account for the sale of a car arises in the following year:

The declaration in form 3-NDFL is submitted from January to April 30 next year after the sale (for example, a car was sold in 2019 - the declaration is submitted before April 30, 2020);
The accrued tax is paid before July 15 of the year in which the declaration was submitted;
Tax is charged in whole numbers(without kopecks);
You can pay at any Sberbank branch using the details, indicated on the stands at the Federal Tax Service or on the website of the tax inspectorate, KBK (Budget Classification Code for a specific tax) is indicated on page 4 of the 3-NDFL declaration.

You can submit the declaration in person or through a representative with a power of attorney or by mail with a list of the attachments (the date of sending is considered the date of receipt by the tax authorities). Declaration through the “personal account” on the Federal Tax Service website is also allowed.

What happens if you don’t file a return and pay taxes?

For failure to submit a declaration fine of at least 1000 rubles(even if there is no tax to pay) and even after paying a fine, a declaration must be filed. The exact penalty is determined as follows: 5% for each month of the amount of tax due, starting from May of the year established for its submission(not less than 1000 rubles and not more than 30% of the tax amount).

For late payment of tax penalty. The amount is 1/300 of the key bank rate for each day of delay in payment. Penalties begin to count from July 16 of the year of submission of the declaration.

The tax office conducts its audit based on traffic police data. Then he checks the calculation or calculates the tax himself (regardless of whether the declaration is submitted or not). If the declaration has not been filed, the Federal Tax Service will not accept either a deduction in the amount of 250,000 rubles or the costs of purchasing a car. In order to reduce the amount of personal income tax, you will have to challenge the inspector’s decision, including in court.

Instructions for filling out a declaration when selling a car (for individuals)

You can fill out the declaration yourself, there is NOTHING COMPLEX about it. It is not prohibited to contact specialized organizations involved in filling them out (the cost of the service is from 500 to 1500 rubles).

What is required to be submitted to the tax office:

To fill out the declaration you will also need:

Your Taxpayer Identification Number;
number of the tax office and OKTMO at the place of residence;
passport details, registration.

How to correctly fill out the 3-NDFL declaration form

The most convenient way to use the program is to download it here 3NDFL Declaration for 2019. After installing it, you need to enter information about yourself, your income and expenses, it’s not at all difficult.

Section: Setting conditions

Declaration type - choose 3-NDFL;
General information - select the tax office number - 4 digits;
Taxpayer identification: another individual;
There are incomes - select the top one “accounted for by certificates of income of an individual, etc.”;
Reliability is confirmed - in person.

Section: Information about the declarant

Full name, TIN, date of birth, place of birth, country code 643;
Type of document - passport of a citizen of the Russian Federation, fill in the specified passport data;
In the top panel, click on “house” - fill in information about your place of residence.

Section: Income received in the Russian Federation

Payment source: click on the green “+”

Name of the source of payments - only the full name of the car buyer is filled in, the rest is left blank;
Click on “Yes”.

Income information: click on the green “+”

Income code: choose income code 1520 and enter the amount of the sale of the car according to the documents (in the declaration this will be Sheet D2, line 130 or 110, depending on what will be used: acquisition costs (p. 130) or deduction (p. 110)).
Expense code: choose, depending on the situation, what amount is not subject to tax on the sale of a car:
- if you use a deduction in the amount of 250,000 rubles. — deduction code 906(in the declaration this information will appear in line 1.6 of page 120 of Sheet D2.);
- if you have documents for the purchase of this car - deduction code 903(in the declaration this information will appear in line 1.7 of page 140 of Sheet D2).
Next, enter the number of the month your car was sold;
Numbers will appear in the “Total amounts by payment source” columns; there is no need to edit them.

If there are other incomes and possible deductions, fill out the declaration here for these types of income or deductions. In the top panel, you can click “check” for correctness of filling, click “view” and make sure that there are no errors. Then print out 2 copies, one is handed over to the Federal Tax Service at your place of residence, the other remains with you (the tax office puts a stamp on it regarding the date of receipt of the declaration).

When submitting a declaration, attach payment documents and agreements, as well as an application, the sample of which will depend on the deduction code 903 or 906. You can download the samples here (see above).

If you have questions about the topic of the article, please do not hesitate to ask them in the comments. We will definitely answer all your questions within a few days.

371 comments

Hello, my husband was killed and I entered into the right of inheritance. In 2015, I sold an old combine for 80,000, but did not file a declaration. I am a pensioner, I live in the village. Will I be fined for not filing a declaration and how much? Thank you in advance for your cooperation!

Tsyganova Svetlana

Hello Irina. Yes, you will be charged a fine of 1,000 rubles; pensioners are not exempt from the obligation to submit a declaration on time. You need to submit it anyway, albeit late, but necessary. If you do not file a declaration, you may be deprived of the deduction and you will have to pay tax of 13% of the sale amount (from 80 thousand rubles). Because there is no tax to pay (you write an application for a deduction of 250,000 rubles), then you will not be charged a 20% fine of the amount, or penalties, but for late filing of a declaration -1000 rubles will be charged to you.

Thanks for the help! Merry Christmas! Health and longevity!

Please tell me what if I sold the car, but 3 years have passed since its acquisition. Do I also need to submit a declaration?

Tsyganova Svetlana
Hello Andrei. Yes, you get a tax of 18200 and you will have to pay it. The tax office does not accept any expenses for repairs, etc., as expenses. It only recognizes the price indicated in the vehicle’s policy document when purchasing it. As for the receipt, read the comments, we have already answered similar questions several times, we will not repeat ourselves and clog up the airwaves.
You shouldn’t have so recklessly signed a contract with a reduced amount, you always need to indicate the real value, otherwise when selling you will be a big loser, or you wouldn’t sell the car until December 2016, or more precisely until January 2017, then there will be no obligation to file a declaration and pay taxes would arise.

I’ll repeat the question. In April I purchased a car from an LLC with a faulty engine, about which there is an independent expert’s opinion for 100,000 rubles. The repair cost more than 700 rubles. In December I took it to the salon for a trade-in for 1,000,000 rubles. Will the amount of repairs be excluded from tax?
Thank you.

Tsyganova Svetlana

Hello, Marina. Your situation is controversial, and as a rule, the tax authorities do not accept tax credits for repair expenses. Much depends on what repair documents you have. It is to them that the inspector's attention will be drawn. If there is an agreement with the organization that carried out the repairs, there is a clear list of work and the cost of spare parts is indicated in the agreement, there are payment documents (cash receipts, payment orders), then you can compete for the right to include the amount of engine repairs in expenses. But, in my opinion, the chances are not great.

Firstly: you can include in expenses the amount for which you purchased the car, if there is an agreement and all documents confirming payment.

Secondly: write a covering letter in which you indicate that the car had a faulty engine and required major repairs, and include an expert’s assessment.

Third: repair costs must be clearly documented. There must be an agreement with the company where the repairs were carried out, clearly indicating the types of work, their cost, and payment documents.

If there are no such documents, the tax office will not accept the tax expenses as offset and the tax will have to be paid using only a deduction of 250 thousand rubles.

A written explanation from the taxpayer should be submitted to the tax office as part of the main package of documents, indicating that the car was purchased in advance defective, that is, unsuitable for its intended purpose. In order to obtain property that corresponds to its purpose, it was necessary to carry out several legally significant actions: purchase the object and carry out special and necessary repair work. Such work is included in the list of actions associated with the purchase of a product, as it restores its functionality. In addition, the initial purchase provided for a significant discount, implying subsequent expenses of the new owner to bring the car into proper condition. This is confirmed by both the purchase and sale agreement and the expert’s opinion.
Tsyganova Svetlana
- Ordinartsev Roman
  
  Hello, Elena!
  As it became clear from your question, you reported to the tax office by submitting a declaration in which you determined the tax base according to the principle: income minus expenses. Accordingly, your tax turned out to be zero. The Federal Tax Service checked the declaration and applied a deduction in the amount of 250,000 rubles, that is, the “cleared” income amounted to 50,000 rubles, which is subject to taxation.
  
  Of course, you are right, but you did not provide sufficient data about this. From the current situation it is clear that 10,000 rubles. you paid, and the rest of the amount was paid by a stranger, that is, this amount is not your expenses, but, in fact, a gift to you from your common-law husband.
  
  You should clarify the situation in more detail. Show that the money is yours, and your common-law husband was carrying out your instructions, since you yourself, due to your health condition, could not do this, but had to according to the terms of the deal. That is, in addition to the purchase agreement, payment documents, an explanation from you and your common-law husband should have been submitted to the tax office (about the circumstances under which he received money from you and how he carried out your instructions), you could even draw up some kind of agreement/receipt "backwards" number" about issuing an order, etc., provide evidence of where (from what sources) you got the money for the car, a sick leave certificate confirming the difficulty of a personal visit, etc.
  
  But it's not too late to correct the situation. Objections should be written to the office report (within 1 month after receiving the inspection report), attaching all the above-described documents and detailed descriptions. If a decision has already been made (the act has been reviewed), then you should write an appeal to a higher tax authority (also describe everything in detail and attach supporting documents). And then (if there is no result) go to court.

Hello. Received the car under a gift agreement in 2015. The car is in a broken state. Spent 1.5 million rubles on restoration. In 2016, he sold it for 2 million rubles. Is this taken into account when calculating income tax? After all, I spent 1.5 to get 2 million. I read the comments previously published, but there they were only about retrofitting and operating costs, but here is restoration.

Tsyganova Svetlana

Hello, Igor.
The tax code only specifies “acquisition expenses,” i.e. the amounts specified in the car purchase and sale agreement.
The tax office only takes them into account. Other expenses, as a rule, are not accepted by tax authorities.

You can try, but the chances are negligible. If you have documents (contract and payment documents from organizations) confirming every ruble of expenses for its restoration, you can try to provide them, but everything will depend on what kind of documents they are and for what. You also need an expert’s opinion that the car was in post-accident condition, etc. See previous comment on this topic Marina 01/10/2017.

The main disadvantage for you is that a car that is in a faulty condition (not subject to disposal) can be easily registered (information about the new owner can be registered), that is, a transaction for the purchase of a vehicle, as well as registration with the traffic police, are carried out regardless of the technical condition. The Federal Tax Service will focus on this, regarding the restoration of the vehicle as actions to improve its condition
In 2016, we sold a car that had been owned for less than 3 years. Sale price 240,000 rub. The problem is that in 2017 they forgot to submit a declaration in form 3-NDFL. It is clear that now we will receive a fine of 1000 rubles..... We saw a notice of this in the taxpayer’s personal account only in February 2018. Tsyganova Svetlana

Hello, Ekaterina. There will be no tax due, because you can take advantage of a deduction of 250,000. In the declaration, indicate the lines sales of 200,000, deduction of 200,000. Tax = 0. But you must submit a declaration.

In just a few days, on March 1, the deadline for filing an income tax return for 2017 expires. the site is completing the publication of answers from specialists from the Ministry of Taxes and Duties to questions from readers. Today we talk about the tax intricacies of car sales.

Do I need to file a declaration if I sold two cars for less than I bought?

Question: In 2017, I sold two faulty cars. The selling price was much lower than the purchase price. Both cars were my property. Do I need to file a tax return?

Question: Tell me, is it necessary to file a declaration if a second car was sold during the year, but no income was received?

MNS response: Yes, the income tax return (calculation) is submitted no later than March 1, 2018 ( paragraph 1−1 of Article 180 of the Tax Code).

According to the legislation, income (except for income received by payers from the alienation of property for compensation in connection with their business activities) received by individuals who are tax residents of the Republic of Belarus from the alienation for compensation during the calendar year of one passenger car (a car that is technically permissible) is exempt from income tax. whose total weight does not exceed 3500 kilograms and the number of seats in which, in addition to the driver’s seat, does not exceed eight) or another motor vehicle. In connection with this, income from the sale of a second passenger car during the calendar year is subject to taxation ().

At the same time, when calculating income tax, the amounts actually produced by an individual and documented expenses related to the purchase of the second car sold.

Thus, if the second car is sold cheaper than purchased, which will be documented, then there will be no additional tax. At the same time, despite the absence of additional tax, a tax return (calculation) for income tax in this situation is subject to mandatory submission.

I gave one car to my wife, I’m selling the second. Will there be a tax?

Question: We bought and drove a damaged car from Germany, the cost was 6,000 euros. We repaired it in Belarus, spending $5,000. As a husband, I gave a car to my wife (donation agreement) in January 2018, the cost of the car is 30,000 Belarusian rubles. Does she need to file a tax return and pay any taxes? I plan to sell my car this year for $3,000. Do I need to file a return and pay any taxes?

MNS response: Your spouse is not required to submit an income tax return or pay tax. Gifts from close relatives (which for tax purposes include, in particular, spouses), received both in cash and in kind (in the form of a donated car), are not subject to income tax, regardless of their size ( subclause 2.1 of clause 2 of Article 153 of the Tax Code).

As mentioned above, the sale by individuals during a calendar year of one passenger car (a car whose technically permissible total weight does not exceed 3,500 kilograms and the number of seats, in addition to the driver’s seat, does not exceed eight) or another motor vehicle is exempt from tax. ( subclause 1.33 of clause 1 of Article 163 of the Tax Code). Thus, if during 2018 you receive income only from the sale of one passenger car, then submitting a tax return (calculation) for income tax and paying tax are not required.

What if I sold the car and a share in the second car?

Question: Is it necessary to pay tax on the second car sold during 2017 in the following case: an individual (working at an enterprise) sold the first car in 2017, then in the same year inherits ½ share of the second car, which is also the same individual person (since the second share of the car was inherited by a minor and a technical passport could not be issued for him) was sold in the same year. Thus, the individual actually sold 1.5 cars during the calendar year. If tax must be paid, then on what amount of the transaction (100% or 50%) and are there tax benefits for an individual when paying this tax, who has two dependent minors?

MNS response:

According to income tax legislation ( subclause 1.33 of clause 1 of Article 163 of the Tax Code) income received by individuals from the sale of one vehicle, as well as from property received by inheritance, is exempt, regardless of the above procedure.

Thus, if during 2017 you received income from the sale of one passenger car and an inherited share in the ownership of a second passenger car, submitting a tax return (calculation) for income tax and paying tax are not required.