When selling your car, you must pay income tax individuals in the amount of 13% of the amount of profit received. Fortunately, you don't always have to pay. How much will the sale result in when tax is not paid, what cost is not subject to collection, in which case the deduction is due are discussed in the article.
Vehicle sales tax less than 3 years owned 2018
If the vehicle has been owned by the owner for 3 years or more, then when it is sold, the amount received is not subject to personal income tax. When the seller is the owner of less three years, then you need to pay the state 13% of the amount specified in the contract of sale. Quite often, you can get an exemption from rallying, but you will have to prove this right to the Federal Tax Service of the Russian Federation.
Tax on the sale of a car in 2018 for individuals
Income on cash from the sale of the car, depends on:
- from the period of car ownership. If a citizen has a car for continuous 36 or more months, it is not charged. The term is confirmed by a used purchase agreement, an invoice from a car dealership for a new one, etc. Only this case gives the right not to file an income tax return with the tax office.
- from the nationality of the seller. For residents, the rate is 13 percent, for all other non-residents, they have to pay 30%;
- from the price of the vehicle, more precisely from the income from the sale. You do not need to pay if it is sold cheaper than it was bought. Confirmation - 3NDFL and documents for the car.
Vehicle tax when selling a car
Transport tax is the responsibility of the direct owner and is collected at the place of his residence. Chapter 28 of the Tax Code does not establish benefits for the payment of TN, but Article 356 allows regional authorities to exempt citizens of certain categories from the collection - for example, participants in hostilities or parents with many children, etc. In some districts of Russia, benefits have been established for low-power vehicles - you can find out specifically only in the region where the owner lives.
Transport tax when selling a car without deregistration, it is charged from a citizen in whose name the car is registered in the traffic police. Even if the car has been sold for a long time, it is operated by another motorist, the basis for release is only deregistration. The duty ceases to be calculated from the month following the date of deregistration.
Owners of wanted, stolen cars are completely exempted from the tax.
Amount exempt from tax when selling a car in 2018
In 2018, absolutely not taxed:
- sale of a car priced at 250,000 or less.
- acquisition costs. For example, a citizen sells his car for 1.1 million rubles, while he has a certificate-invoice from the salon, which indicates that 700 thousand rubles were spent on the purchase. Personal income tax is levied only on 400 thousand rubles. Additionally, if the seller worked and paid income, he can issue a deduction for 250 thousand rubles.
The amount is not affected by the original place of purchase of the car - Ukraine, Belarus, etc., the main condition is the availability of documents so that you can calculate the period of ownership and the amount of costs incurred.
If you plan to sell a second car, it is better to wait until the next reporting year - exemption is possible only once a year.
How much tax is not taken from the sale of a car?
Personal income tax is not charged if the vehicle is sold for 250 thousand rubles or less - this amount is tax-free. If the price of the car is higher, the difference in value is subject to taxation.
Maximum amount from pensioners
The status of a pensioner does not in any way affect the need to pay taxes on the income received (car), therefore the minimum amount is the same as for other categories of citizens - 250 thousand rubles.
Transport tax when selling a car by a legal entity
The sale of both a truck and a car owned by a legal entity has its own characteristics. On the one hand, the organization makes a profit, on the other hand, it is necessary to take into account depreciation, disposal of fixed assets, VAT. OSNO participants can reduce the taxable base:
- for the amount residual value, how older car, the smaller it is;
- on the amount of expenses for sale - valuation, transportation, Maintenance etc.
If there is a loss as a result of the sale, this is taken into account in a separate accounting item of the organization.
Contract of sale
When the seller is an individual entrepreneur in the car purchase agreement and primary documents are issued for the car - for example, an invoice, invoice, etc., the income will be considered the profit of the entrepreneur and taxed at the tax rate. The fee is 6% of the amount.
Do I have to pay for a donated car?
According to Article 228 of the Tax Code, the duty on a donated car is paid by the person who received the income, which is the gift. Under a donation agreement, it is quite difficult to calculate the amount of income; they usually take an approximate market value. Tax is not paid in cases where the gift was made by a relative or family member.
Tax on the sale of cars in 2018 new law
The sales tax law, which came into force on January 1, 2018, mostly affected real estate. Changes have been made regarding the period for which the seller must own the property - the buyer will not receive a refund if the apartment has been owned for less than five years.
The terms of taxation for the sale of cars have not changed.
Tax exemption: reality or talk
Reimbursement of the tax deduction and exemption from payment from the sale of a car is the right of the taxpayer, but not at all an obligation. Only if a citizen independently takes care of protecting his rights, then he will be able to receive all the benefits due to him. The following points should be taken into account:
- property tax deduction you can get no more than 250 thousand rubles a year. For example, if income has already been recalculated for reimbursement of medical care or for the purchase of an apartment, it will not be possible to receive a full refund from the sale of a car. On the other hand, if two or even three inexpensive vehicles are sold during the year, their price is summed up, and no accrual is made until the tax-free value is exceeded.
- in order to receive a deduction in several cases, you will have to come to the tax office in both cases. The calculation procedure does not imply the termination of accrual with one application. Each issue is resolved separately: an application and a declaration must be submitted for each. Therefore, if possible, it is better to return the duty on an apartment for the past or next period.
- it is impossible to avoid payment from the sale - for non-payment of the fee, a fine of 5% of the unpaid amount is due, therefore, if there is confidence in the availability of benefits, it is necessary to document everything, i.e. to prove their right, to indicate the profit received in the declaration.
Exemption from personal income tax is available only upon submission of supporting documents and an application to the Federal Tax Service at the place of residence or online on the website. This process is not done automatically, you yourself need to take care of getting what is due.
If you have questions, consult a lawyer
You can ask your question in the form below, in the online consultant window at the bottom right of the screen or call the numbers (24 hours a day, seven days a week):
According to the analytical agency « » , the period of car ownership in Russia continues to increase. And the fact that car enthusiasts try not to part with their cars for many years does not speak of the sentimental attachment of the former to the latter, it's all about banal savings. Owners are afraid to get rid of old cars, because there may simply not be enough money for new ones.
Tenure study cars in the Russian Federation, which, being purchased new, were sold last year, 2017, showed the average time of ownership during 57 months or 4.75 years old.
As noted by the analytical agency, cars in the same hands began to linger over the past few years. This indicator began to grow 10 years ago, in 2008, when another economic crisis, which was quite noticeable for all segments of the population, passed around the world. Since then, tenure periods have practically doubled, to be precise, by 21 months. That is, 11 years ago, the average motorist changed his iron horse every three years.
As usual, the burden of the agony of choice falls on the shoulders, due to the incessant rise in car prices, uncertainty about the future and, of course, a drop in income, Avtostat recalls this. At the same time, despite the stratification of society according to the economic factor (someone has more money and can afford a more expensive car, someone has less money), the increase in ownership has affected everyone.
The average statistics of a new purchased car correspond to 4-5 years old. However, there are also record holders for the duration of ownership, both in terms of ultra-fast sale of a new car, and very long car ownership.
Consider the Top 11 Car Ownership Times with percentage each of them:
Ownership less than 1 year,6%
Possession is likely to be interrupted serious accident with the subsequent resale of the car. Otherwise, it is almost impossible to explain getting rid of a recently purchased car.
Ownership from 1 to 2 years,7%
The car could not be liked for any reason (technical, aesthetic, and so on).
Ownership 2 to 3 years,10%
About 10 years ago, it was the average "European" period of ownership of premium cars and cars above budget class. After that, the model was sold and bought a new, regular one.
Ownership for 3 to 4 years,13%
Until 2008, the average time for a model change by owners budget models V major cities Russia. Now so many premium brands are owned.
Ownership for 4 to 5 years,14%
The average value of updating budget models in 2017.
Ownership from 5 to 6 years,12%
Some owners decide to keep the car in their hands a little.
Ownership from 6 to 7 years,8%
Perhaps this layer of car enthusiasts really like their car, and they are not going to sell it.
Ownership from 7 to 8 years,4%
A good reason is required to own a car for more than 7 years. For example, very high quality.
Ownership 8 to 9 years,6%
Similar to the previous point.
Ownership from 9 to 10 years,7%
Perhaps a person is very attached to his car or he does not have money to adequately update it. Most likely the second option.
Over 10 years of car ownership,13%
As you can see, last year a significant part of car owners did not sell the once bought new car and have owned it for more than 10 years. Well, they probably hope that in 20 years their cars will become rarities and they can be sold with a big “fat”. And if no joke, people simply do not have the means to upgrade their rapidly falling apart car to a new similar analogue.
Good afternoon, dear reader.
Every car owner sooner or later has to face the need to sell own car. The reasons for the sale can be completely different, but today we will not talk about them.
I think it's not a secret for you that at present all transactions for the sale of property are subject to income tax. This also applies to transactions aimed at selling a car.
The amount of tax on the sale of a car depends on several factors, which will be discussed in this article. In addition, we will talk about situations in which income tax on car sales may not be paid legally.
Even if you are in soon if you are not going to sell the car, I recommend that you read the text of this article. This information will help you avoid unnecessary problems in the future.
For clarity, I propose to consider in this article a few examples of car sales:
- The Yenisei 1 car was bought in January 2018 for 500,000 rubles and sold in September 2018 for 450,000 rubles.
- The Yenisei 2 car was bought in January 2014 for 300,000 rubles and sold in September 2018 for 450,000 rubles.
- The Yenisei 3 car was bought in January 2018 for 200,000 rubles and sold in September 2018 for 450,000 rubles.
- The Yenisei 4 car was bought in January 2018 for 350,000 rubles and sold in September 2018 for 450,000 rubles.
- The Yeniseichik car was bought in January 2018 for 200,000 rubles and sold in September 2018 for 250,000 rubles.
In the process of studying this article, you will learn how to determine the amount of tax on the sale of any car and will be able to easily calculate the amount of deductions to the state for Yenisei cars.
The amount of tax on the sale of the car
The amount of personal income tax is currently 13 percent.
With regard to cars of the Yenisei brand, the amount of income tax:
450,000 * 0.13 = 58,500 rubles.
Agree, the amount is quite impressive. However, none of the sellers will have to pay this amount in full.
car sales tax
Consider the main situations in which the amount of tax can be reduced:
1. Lack of income
Let's take a closer look at the situation with the Yenisei 1 car. This car was bought for 500,000 rubles and sold for 450,000 rubles. Obviously, in this case, the seller did not receive any income at all, i.e. the income tax rate is 0.
However, in this case it should be noted that in order to be exempt from paying tax on the sale of a car, it is required to submit a declaration to the tax office with the attached sales contracts (or their copies). More details about the deadlines for filing a declaration will be discussed a little later.
In this case, there should be 2 contracts. One of them was drawn up when buying a car (in January), and the other when selling it (in September). If the contract of sale of the car has not been preserved, then you should turn to other ways to reduce the tax.
2. Long-term car ownership
Consider a car Yenisei 2, which was sold for 150,000 rubles more than it was bought. This car will also not be subject to income tax, because. he was owned more than 3 years. Tax Code of the Russian Federation, article 217:
The following types of income of individuals are not subject to taxation (exempted from taxation):
...
17 1) income received by individuals for the relevant tax period:
- from the sale of real estate objects, as well as shares in the said property, taking into account the specifics established by Article 217 1 of this Code;
- from the sale of other property owned by the taxpayer for three years or more.
Thus, long-term ownership of the car can completely exempt the seller from paying tax.
If 3 years or more have passed between the purchase and sale of the car, then the seller don't have to pay tax and file a declaration.
3. Tax deduction
The owner of the car can expect to receive a tax deduction in the event that he could not completely avoid paying taxes in one of the above ways.
This item includes cars Yenisei 3 and Yeniseichik, which were sold more expensive than bought and were owned for less than 3 years. In addition, the owner of the Yenisei 1 car also applies to the same item, if he lost it.
Article 220 of the Tax Code:
Article 220. Property tax deductions
...
2. The property tax deduction provided for by subparagraph 1 of paragraph 1 of this article shall be granted taking into account the following features:1) property tax deduction is provided:
...
in the amount of income received by the taxpayer in the tax period from the sale of other property(with the exception of valuable papers), owned by the taxpayer for less than three years, not exceeding in total 250 000 rubles;
So what does tax mean? deduction in the amount of 250,000 rubles? In this case, 250,000 rubles will be deducted from the cost of the car upon sale, and tax on the sale of the car will need to be paid from the remaining amount.
Yenisei 1: (450,000 - 250,000) * 0.13 = 26,000 rubles.
Yenisei 3: (450,000 - 250,000) * 0.13 = 26,000 rubles.
Yeniseichik (250,000 - 250,000) * 0.13 = 0 rubles.
Note that a car sold for 250,000 rubles or less is not subject to sales tax. However, keep in mind that the tax deduction of 250,000 rubles is only available 1 time per year.
For example, with the simultaneous sale of cars Yenisey 3 and Yeniseichik, the amount of tax will be:
(450,000 + 250,000 - 250,000) * 0.13 = 58,500 rubles.
4. Reducing income by the amount of expenses
There is another option for reducing the amount of tax - reducing income by the amount of expenses. Article 220 of the Tax Code Russian Federation, part 2:
2) instead of receiving a property tax deduction in accordance with subparagraph 1 of this paragraph, the taxpayer has the right reduce the amount of their taxable income by the amount of actually incurred and documented expenses associated with the acquisition of this property.
This option makes sense to use if the car is sold for more than it was bought.
The method is well suited for selling the Yenisei 4 car (it was bought for 350,000 rubles and sold for 450,000 rubles).
In this case, the amount of tax will be:
Yenisei 4: (450,000 - 350,000) * 0.13 = 13,000 rubles.
If in the same situation you use a deduction of 250,000, then the amount of tax will be much higher:
Yenisei 4: (450,000 - 250,000) * 0.13 = 26,000 rubles.
However, there are times when you have to use the second option. For example, if the contract for the purchase of a car is lost and it cannot be submitted to the tax office.
Note, cannot be used at the same time(for the same car) a deduction of 250,000 and reduce income by the cost of expenses. Only one of the options is allowed to be selected.
So, once again I will give a list of situations in which you can not pay tax on the sale of a car:
- Car selling price less cost at the time of buying;
- Owning a car for 3 years or more;
- The selling price of the car is $250,000 or less.
In all other cases, when selling a car, you will have to pay tax. By the way, starting in 2011, the sale of a car can be performed according to a simplified scheme,.
Which tax reduction option to choose?
The following table shows best options for the most common situations:
Not in every situation the tax can be reduced to 0, however, using the table below, you can achieve the minimum amount of payment.
The procedure for paying tax when selling a car
Please note that even if, according to your calculations, you owe nothing to the tax after the sale of the car, declaration still needs to be filed.. The only condition under which you do not need to file a declaration in 2019 is that you have owned a car for more than 3 years.
The tax return for the current year (2019) is filed at the beginning of the next year (2020). The deadline for accepting your tax return without penalties is April 30. I recommend submitting a declaration at the end of February or beginning of March, because. by the end of March, the season of queues begins at the tax office.
When selling a car, a tax return is filled out using special program, which can be downloaded from the website of the tax office. I emphasize that the program for 2019 will appear only at the beginning of 2020. It makes no sense to use last year's programs, because. tax laws can change significantly over the course of a year.
In addition to filing a tax return, the seller of the car must also pay income tax itself. This can be done both immediately after the sale of the car, and after filing a tax return (but before July 15).
Car sales tax for non-residents of the Russian Federation
Special attention deserves the payment of tax on the sale of a car by non-residents. First, let's figure out who is recognized as a tax resident of the Russian Federation (Article 207 of the Tax Code):
2. Individuals who actually stay in the Russian Federation for at least 183 calendar days within 12 consecutive months are recognized as tax residents. The period of stay of an individual in the Russian Federation is not interrupted for periods of his departure outside the territory of the Russian Federation for short-term (less than six months) treatment or training, as well as for the performance of labor or other duties related to the performance of work (provision of services) at offshore hydrocarbon fields. raw materials.
All other car sellers in the Russian Federation are not tax residents.
Features of tax payment by non-residents:
- 1. The amount of tax is 30 percent from the value of the car.
- 2. Non-residents of the Russian Federation cannot take advantage of the tax deduction, i.e. must pay tax on the total amount of the sale.
- 3. If a non-resident owns a car for 3 years or more, then he is exempt from paying tax. This clause applies to transactions concluded after January 1, 2019.
Attention! Until January 1, 2019, non-residents of the Russian Federation had to pay tax on the sale of a car, even if they own a car for more than 3 years.
If you sold the car in 2018 or earlier and were not a tax resident of the Russian Federation, then keep in mind that you will have to pay tax on the sale of the car in any case. And its value is 30 percent of the sale price.
So, sum up this article:
- After selling the car, you should choose a method that will minimize the amount of tax.
- File your tax return by April 30 of the year following the sale.
- Pay tax by July 15 of the year following the sale.
I am sure that after reading this article, calculating the tax on the sale of any car will not be difficult.
Good luck on the roads!
Read all comments
Dmitry-485
Good evening! Please tell me, the car was sold in October 2018 for 130t. rubles (it was bought in 2016 for 200 tons), the sale and purchase agreement is lost, what will I get?
Sergey-741
Hello, tell me please.
Now I'm selling a car, I bought it for 900, I have a contract, I've owned it for less than three years, the first car sold will be in a year. Is it realistic to indicate 250 thousand the amount of the sale? or there will be questions why so sharply cheap ?? What amount is better to indicate so as not to arouse suspicion and not get taxed.
Eugene-300
Good afternoon. If the contract is lost, but for memory the amount was 250 thousand in the contract. The sale is expected to be 240 thousand. What documents will need to be submitted for the deduction?
Alexander, if the car belonged to you and was sold without your knowledge, then you can try to invalidate the transaction for the sale of the car. After that, the car must be returned to you. Accordingly, in this case, you will have no income and no tax.
Good luck on the roads!
Sergey-740, Hello.
You can draw up a contract for the sale of a car without registering the car to the owner. That is, she will not have to contact the traffic police.
However, at the beginning of next year, a friend will have to file a tax return and submit it to the tax office, because. She has owned the car for less than 3 years. Also, be careful with the choice of the amount of the sale of the car. If the car is sold to you for more than it was bought before, you will have to pay tax.
Good luck on the roads!
Dmitriy, Hello.
Take advantage of the 906 deduction in the amount of 130,000 rubles. In this case, there will be no tax. In this case, a purchase agreement is not required.
Good luck on the roads!
Sergey-741, Hello.
If you have a contract for the purchase of a car, then when selling a car for any amount not exceeding 900,000, there will be no tax.
It is possible that if the sale price is too low, the tax will have questions.
Good luck on the roads!
Eugene, Hello.
If this the only car sold for the year, then just use the deduction 906 in the amount of 240,000 rubles. In this case, a purchase agreement is not required.
Good luck on the roads!
Hello. I received the car as a gift (donation). The owner has died. The cost of the car is about 300,000. I want to sell. What taxes will I have to pay and how can I reduce the tax amount?
Denis, Hello.
Was the previous owner a close relative of yours? What year was the car donated?
Auto owned less than a year, was sold for 200,000 rubles. Does that mean I don't have to pay anything?
Good luck on the roads!
Good afternoon. Please help me in 2017 I bought a car for 950,000 thousand rubles, 2018 sold for 640,000. As I understand it, no tax will have to be paid?
Good afternoon
If I bought in June 2018. a new car from a dealer for 1.4 million rubles, and now in April 2019. I rent it by trade-in, but the cost is lower than the purchase (1.2 million rubles), which deduction is better to use?
Elena, Hello.
Take advantage of deduction 903 in the amount of 640,000 rubles, in this case there will be no tax.
Good luck on the roads!
Ruslan, Hello.
The declaration will need to be submitted at the beginning of the next (2020) year. When applying, use the deduction 903.
Good luck on the roads!
Victoria1-1
Hello, please tell me, in 2013 my young man purchased 2 cars in the salon, in 2016 we got married, and in 2017 both cars passed to me under a marriage contract. In 2018 I sold them, what about the tax, do I really have to pay?
Hello. Does a non-resident of the Russian Federation who sold a car cheaper need to pay tax? and Do I need to file a declaration?
Victoria, Hello.
If the cars were owned by you for less than 3 years, and according to the description it is, then after their sale you should pay tax.
Good luck on the roads!
Alyona, Hello.
A non-resident of the Russian Federation cannot use the deduction, that is, he cannot reduce the sale price by the purchase price. Therefore, you will have to pay tax.
Good luck on the roads!
Gulnaz-2
Hello, we bought a car for 136 thousand and sold it for 50 thousand. As I understand it, you don’t need to pay tax? You just need to send a declaration? Thanks for the answer
Good afternoon Bought a car in 2017. The price was 425,000 rubles. Sold in 2018 for 400,000 rubles. On this moment There is only one contract of sale in hand. How to be in this situation? If it is not possible to contact again former owner car. Thank you!
Dmitry-495
Hello. In March 2018, I sold a car for 650,000. I owned a car for less than 3 years, the sales contracts drawn up during the purchase and sale were not preserved. I know that I will have to pay tax. purchase and sale. Will I be taxed on the sale of a car? if so, is it possible to return the money later using a tax deduction when buying an apartment on a mortgage?
Good afternoon. Sold cargo semi-trailer as an individual for 70,000 rubles. in use for more than 3 years, bought a new one for 350,000 rubles. Do I need to pay personal income tax and how to show in 3 personal income tax?
Gulnaz, Hello.
All right. You can use any deduction (906 or 903).
Good luck on the roads!
Novel, Hello.
You can try to get a copy of the contract in the traffic police, in which you registered the car after purchase.
Good luck on the roads!
Dmitriy, Hello.
In this case, you need to draw up one declaration in which, firstly, to report for the car, and, secondly, to use the deduction for the purchase of an apartment. It is possible that in this case you will not have to pay anything.
Good luck on the roads!
Elena, Hello.
Article 217 of the tax code:
17.1) income received by individuals for the relevant tax period:
from the sale of other property owned by the taxpayer for three years or more.
The specified trailer does not need to be included in the declaration.
Good luck on the roads!
Alexey-522
Good afternoon. If I bought a 2019 car for one hundred thousand rubles this year, and sell it the same year for 200,000 rubles, will I not have to pay tax?
Andrey, Hello.
If this is the only car sold in a year, then you can use a deduction in the amount of 250,000 rubles in the declaration. Those. there will be no tax.
When selling a car, many car owners experience reasonable question Do I need to pay any tax to the state? This article will allow you to understand the intricacies of taxation in this case.
VAT on the sale of a car
According to Art. 208 of the Tax Code of the Russian Federation, the sale of property located in the Russian Federation and owned by an individual (in this case, a car) refers to income received from sources in the Russian Federation. And income, as you know, is the tax base for the calculation and payment of personal income tax.
Calculation of tax when selling a car
When calculating the amount of personal income tax, it is necessary to take into account:
- purchase price of the car;
- the value of the car upon sale;
- tenure vehicle.
| Situation | Solution |
| The cost of the car is 200,000 rubles (tenure of 2 years) | A declaration in the form of 3-NDFL is provided, but the tax is not paid |
| Car bought for 300,000 rubles, sold for 360,000 rubles (tenure 1 year) | The tax amount is (360000-300000) * 13% = 7800 rubles |
| Car bought for 360,000 rubles, sold for 300,000 rubles (tenure 1 year) | No income, no tax base. A declaration in the form of 3-NDFL is provided, but the tax is not paid |
| The car was sold for 360,000 rubles, there are no documents confirming the purchase of the car (tenure for 2 years) | The tax amount is (360,000-250,000) * 13% = 14,300 rubles |
The property deduction, which allows to reduce the tax base, is 250,000 rubles per year. It can only be used once a year.
Example:
Sergeev S.S. sold a car that he owned for 1 year for 380,000 rubles. When buying a car, it cost 300,000 rubles.
The calculation can be done in two ways:
Thus, Sergeev S.S., of course, it is more profitable to pay personal income tax, taking into account the initial cost of the car. If the documents confirming the original cost of the car are lost (or the car was donated), the cost established during the sale is taken into account, which can be reduced by the amount of the property deduction (250,000 rubles).
Example:
Sergeev S.S. within 1 year he owns two cars (worth 380,000 and 260,000 rubles), which he decided to put up for sale. Documents confirming the cost of cars upon purchase were not found (they were lost). In this case, Sergeev S.S. has the right to reduce the tax base by only 1 vehicle.
So the calculation might look like this:
- ((380000-250000)+260000)*13%=50700 rubles
- ((260000-250000)+380000)*13%=50700 rubles
As can be seen from the calculation, the amount of tax does not change regardless of which car the property deduction will be applied to.
In this case, Sergeev S.S. it is advisable to contact the Federal Tax Service Inspectorate with a written request for the cost of cars when buying, because. data on the cost of the vehicle are transferred to the traffic police IFTS.
Paying personal income tax when selling a car that has been owned for less than three years
Owning a car for less than three years means owning a vehicle for less than 36 months. If the car was owned by the owner for 37 months, then in this case we will talk about owning the car for a period of more than three years, which automatically exempts the car owner from paying personal income tax if it is sold ( clause 17.1 of Art. 217 Tax Code of the Russian Federation).
The period of ownership of a vehicle is calculated not from the date of registration of the car with the traffic police, but from the date specified in the sales contract.
Who is exempt from paying personal income tax when selling a car?
Not all car sellers are required to pay personal income tax:
What is the deadline for paying personal income tax when selling a car?
Example ⇓
Sergeev S.S. sold the car in November 2017. He must submit a tax return by April 30, 2018, and pay tax by July 15, 2018.
What documents are needed to pay personal income tax when selling a car?
To pay personal income tax when selling a car, you must fill out a personal income tax return, which you can fill out online on the website of the Federal Tax Service www.nalog.ru.
To the tax return, you must provide documents confirming the fact of payment:
- contract of sale;
- the seller's receipt for receiving cash;
- certificate-account (if the car was purchased in the salon or from an individual entrepreneur);
- cashier's check;
- payment order.
What tax base can be reduced when selling a car?
For decreasing tax base when calculating personal income tax, it is possible to take into account part of the costs:
| Expenses | How to confirm? |
| Vehicle search services | Contract for the provision of services, documents confirming the fact of payment for the services provided |
| Personal income tax in case of donation of a vehicle | Tax return, documents confirming the fact of payment of personal income tax |
| Registration of a vehicle received by inheritance | Documents confirming the fact of payment of the state duty and payment of the cost of car valuation services |
| Payment of state duty | Documents confirming the fact of payment of state duty |
| Buying a car, paying customs duties | Documents confirming the fact of expenses incurred, a contract for the sale of a vehicle |
What expenses cannot affect the size of the tax base?
Not all expenses incurred by the car owner when buying a car can affect the size of the tax base for calculating personal income tax. These expenses include the following:
- payment of interest on the loan if the car was purchased through a loan;
- any type of insurance;
- payment of any kind of debt for the previous owner of the car.
Questions and answers
- Can I attach a loan agreement to the declaration, which indicates the cost of the car, taking into account the interest paid?
Answer: The loan agreement will directly reflect the cost of the vehicle, which will affect the amount of personal income tax. The amount of interest paid on the loan cannot be taken into account in the tax calculation.
- When buying a car, payment documents were issued to my spouse, and the car itself to me. What is the tax base in this case?
Answer: In your case, we will talk about property acquired in joint ownership. When submitting the 3-NDFL declaration, attach a marriage registration certificate confirming the transaction as a joint acquisition.
- I sold the car for more than I bought. I understand that I have to pay personal income tax, but I have not worked anywhere for more than two years. Is it possible to count on some leniency from the tax authorities?
Answer: Tax on personal income is charged regardless of whether the citizen is working at the time of the transaction or not. There is a fact of receipt of income subject to taxation. In this case, you will have to pay VAT.
