Good afternoon, dear reader.
Currently, there are several ways to transfer ownership of a car. Most often, car owners sell a vehicle using a car purchase and sale agreement.
However, this option is not always the most profitable, because... When selling a car, its owner is forced to pay the appropriate tax.
In practice, there are situations in which you can completely avoid paying tax if you use a gift agreement or deed of gift. We are talking about the transaction of donating a vehicle , which will be discussed within the article.
Paying taxes when donating a car in 2021
To begin with, I would like to note that only a deed of gift for a car concluded between close relatives . This follows from Part 2 of the Tax Code of the Russian Federation (Article 217, paragraph 18):
Income received as a gift is exempt from taxation if the donor and recipient are family members and (or) close relatives in accordance with the Family Code of the Russian Federation (spouses, parents and children, including adoptive parents and adopted children, grandparents and grandchildren, full and half (having a common father or mother) brothers and sisters);
Thus, donating a car is not taxable if the parties to the transaction are:
- husband wife;
- father (mother) - son (daughter);
- adoptive parent - adopted person;
- grandfather (grandmother) - granddaughter (grandson);
- brother (sister) - sister (brother) (having at least one common parent).
Please note that in all other cases, when donating a car, the recipient is required to pay a tax of 13 percent of the value of the car.
For example, when donating a car worth 500,000 rubles, the tax amount will be 65,000 rubles.
Note. When receiving a car as a gift, tax deductions are not provided (Part 2 of Article 220 of the Tax Code of the Russian Federation), i.e. Tax will have to be paid on the entire cost of the donated car.
Normative base
The legal regulation of the gift agreement is carried out (Articles 572–582 of the Civil Code of the Russian Federation).
The peculiarity of such an agreement is that it takes into account moral relations regarding the provision of a gift, based on the personal relations of the parties to the transaction. The specified articles of the Civil Code of the Russian Federation regulate the specifics of registration of a deed of gift, in matters of responsibility of participants, the possibility of refusing a gift and canceling a deed of gift.
The subject of the gift agreement in this case is a car. The vehicle donation agreement will be considered completed after the parties sign the agreement and re-register the vehicle with the traffic police.
In this case, if the vehicle is deregistered, and this may not be done, then it will need to be registered. When transferring a gift - a car - in solemn circumstances and in the presence of all documents for the vehicle, Art. 458 Civil Code of the Russian Federation. That is, the contract becomes concluded.
Moreover, if the donor wants to return the gift back before the state registration of the new owner, he will be able to do this in accordance with Art. 577 Civil Code of the Russian Federation. After registering the vehicle with the new owner, the latter has the right to dispose of the vehicle (sell, donate, bequeath); it will no longer be possible to cancel the gift agreement. Unless - only through the court.
How to properly issue a deed of gift for a car in 2021?
A vehicle donation agreement can be concluded either with a close relative or with a stranger.
When drawing up such an agreement with an outsider, you will need to pay a tax regulated by Art. 217 Tax Code of the Russian Federation. This article also notes that when concluding a gift agreement with a close relative, the recipient of the gift is exempt from taxation. To correctly fill out the vehicle donation agreement, you will need to display the following information:
Often, the Donor wonders whether the gift agreement needs to be certified by a notary? Answer: – notarization of the gift agreement is not required. Therefore, the parties to the transaction can independently draw up a gift agreement.
After signing the donation agreement, the data of the new car owner is entered into the vehicle registration certificate, and you can come to the traffic police to register the car. The presence of the Donor when registering a car with the traffic police is not required.
Gifting a car between distant relatives
In practice, there are situations when you need to transfer a car between people who are actually relatives, but are not included in the list of close relatives.
For example, a few common situations:
- mother-in-law (father-in-law) - daughter-in-law;
- mother-in-law (father-in-law) - son-in-law;
- ex-wife - ex-husband;
- common-law wife - common-law husband.
There are several options for completing a transaction with minimal costs:
- Use of a purchase and sale agreement.
- Use of several gift agreements through intermediate close relatives.
For example, let’s say you need to give a car from your mother-in-law to your son-in-law. In this case, the mother-in-law first gives the car to her daughter (a close relative). After this, the daughter gives the car to her husband (also a close relative).
In this case you will have to:
- Draw up 2 gift agreements.
- Contact the traffic police once to register your car.
Transfer of a car by deed of gift without deregistration
Donating a car without deregistering it with the traffic police is possible. The vehicle is deregistered automatically after it is registered by the new owner. By virtue of Art. 18 Federal Law dated 03.08.2018 N 283-FZ “On the state registration of vehicles in the Russian Federation and on amendments to certain legislative acts of the Russian Federation” the state registration of a vehicle is terminated upon application by the owner of the vehicle.
As a result of this, we can say that in order to formalize a deed of gift, you must comply with the requirements so that there are no problems with the law. If necessary, you can seek the help of professional lawyers who will help you draw up documents and carry out the transaction quickly!
Source
Tax return when donating a car
The recipient must file a tax return only if he received the car as a gift from someone other than a close relative. This follows from Article 228 of the Tax Code of the Russian Federation:
1. The calculation and payment of tax in accordance with this article is carried out by the following categories of taxpayers: ... 7) individuals receiving from individuals who are not individual entrepreneurs income in cash and in kind by way of gift, except for the cases provided for in paragraph 18.1 of Article 217 of this Code, when such income is not subject to taxation;
So, when giving a car as a gift to a close relative, you do not need to file .
Obviously, the operation of donating a car makes sense only when it is carried out between close relatives. In all other cases, I recommend using the purchase and sale scheme.
Let me remind you that when buying or selling, the tax will be paid by the seller, but its amount may be significantly less than when making a gift, because You can take advantage of the tax deduction. Well, if you own a car for more than 3 years, no tax is paid at all.
In what case do you not need to pay income tax?
Rules for registering a deed of gift
To complete the deed of gift in accordance with all the rules, you must follow the established scheme. Article 574 of the Civil Code of the Russian Federation precisely describes the requirements for drawing up a gift agreement:
1 A donation accompanied by the transfer of a gift to the donee may be made orally, except for the cases provided for in paragraphs 2 and 3 of this article. The transfer of a gift is carried out through its delivery, symbolic transfer (delivery of keys, etc.) or delivery of title documents.
2 The contract of donation of real estate is subject to state registration.
3 The contract of donation of movable property must be concluded in writing in cases where:
The donor is a legal entity and the value of the gift exceeds three thousand rubles (as amended by Federal Law No. 280-FZ of December 25, 2008).
The agreement contains a promise of a gift in the future (in the cases provided for in this paragraph, a gift agreement made orally is void).
Form of car donation agreement between relatives
Let's proceed directly to the execution of the car donation agreement . Deed of gift form in the form of images (click to enlarge):
You can also find a car donation agreement in the form of a pdf file here.
Car donation agreement form
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Note. The deed of gift does not need to include information that the parties to the transaction are close relatives. Traffic police officers are not interested in this issue.
Is it possible to carry out the procedure without deregistering the vehicle?
Is it permissible to re-register a vehicle in the name of a wife if she does not have a license?
There are many reasons why a family needs to transfer a car to their spouse. This raises the question: what to do if the wife does not have a driver’s license?
It turns out that the car can be re-registered to the wife, even if she does not have a driver's license . Legislation allows a person without a license to own a car, since a car is a type of movable property. And every person has the right to own property.
Sample car donation agreement
In principle, it is quite simple to issue a deed of gift for a car, even without special knowledge. However, I recommend using a sample car donation agreement so as not to miss or confuse anything:
Sample agreement for donating a car to a relative in pdf format:
Sample deed of gift
Where to go to register a donation?
When the donation is drawn up and signed, the recipient should, without wasting time, go to any Vehicle Registration Department of the MREO STSI to re-register the gift in his name. The registration of the grantee or the place where the vehicle is registered does not matter. The law allocates ten days for this from the moment the donation is signed. The car must be registered within 10 days (according to paragraph 3). Addresses of traffic police departments are available on the official website. You must arrive in a donated car and bring with you:
- civil passport of the donor;
- PTS for cars;
- vehicle registration certificate;
- gift agreement;
- auto insurance policy issued to the recipient;
- receipt of payment of state duty.
How to issue a deed of gift for a car in 2021?
Let's consider point by point how to issue a deed of gift for a car:
1. At the beginning of the gift agreement, you must indicate the city of the transaction, its date, as well as the full name of the donor and the full name of the donee (detailed details of the parties will be filled in a little later).
2. In paragraph 1.1. You must provide as complete information as possible about the vehicle.
3. In paragraph 2.1. The deed of gift should include the address of the place where the vehicle is transferred to the donee.
4. Clause 2.2. required to be filled with additional things and items that are donated along with the car.
For example, these could be documents for a car and a set of winter tires.
5. In Section 4 of the agreement, it is necessary to enter complete information about the parties to the transaction (their passport details).
6. After the car donation agreement has been drawn up in triplicate, each participant in the transaction must sign in the appropriate field.
7. After handing over the keys to the car, the recipient must also sign in the “received the car” column.
What is the best way to re-register a vehicle in the name of a wife or husband, daughter or son, father or mother?
There are several ways to transfer a car to a relative, each with its own characteristics.
Through buying and selling
Under a purchase and sale agreement, you can re-register a car in the name of a close relative without deregistration. If the car has been owned for more than three years, the state fee for re-registration is not charged, the license plates remain the same if they are not damaged (read about the procedure and cost of re-registering a car to a new owner without changing the plates here). The agreement form can be filled out without notarization, although it is preferable.
It should be noted in the contract:
The procedure itself is carried out as follows : the vehicle is inspected, a purchase and sale agreement is concluded in triplicate (two for participants and one for the traffic police), the keys are transferred to the new owner and money to the former owner, then the procedure for registering the car with the traffic police.
How to register a car without selling it?
You can carry out the procedure for re-registering a car in the name of a close relative without selling it in one of three popular ways.
Registration of deed of gift
You can conclude a gift agreement both with relatives and with strangers in accordance with Chapter. 32 of the Civil Code of the Russian Federation, a number of conditions must be met:
The following information must be noted in the gift deed::
Is it necessary to have papers certified by a notary?
If a gift transaction is concluded with a close relative, it is not necessary to have it certified by a notary, but it is preferable, since a notarized document will be convenient for further re-registration of documents.
What is the difference when drawing up an agreement between close family members and an agreement for a third party?
If the deed of gift is issued to a close relative, then the recipient does not have to pay personal income tax; if it is to a stranger, then he is obliged to pay a tax in the amount of 13% of the cost of the car.
Do I need to indicate the cost?
It is generally accepted that an agreement is concluded if it specifies the necessary conditions , such as the subject of the agreement. It is advisable to indicate the cost of the car in the document, but not necessary, since it is not an essential condition, and therefore may not be indicated in the contract if the gift is made to a close relative.
In what cases is it prohibited?
In some cases, according to Art. 575 of the Civil Code of the Russian Federation, donation is prohibited :
General power of attorney
Re-registering a car in the name of relatives by drawing up a general power of attorney is often a convenient form of managing an existing vehicle by family members, as well as making transactions with them, including sale to a third party. In this case, the car remains the property of the owner, and he must pay taxes and fines, if any, are imposed by the road inspection.
Is it necessary to indicate the cost of the car in the contract?
There is no need to indicate the cost of the car in the contract; this information is optional .
However, in practice the following cases sometimes occur. The traffic police officer, who did not find anything to complain about, tells the driver that the contract is invalid, because it does not indicate the cost of the car. In this case, there are 2 options:
- Immediately file a complaint with a higher-ranking official at the traffic police.
- Just add the cost of the car to clause 1.1 of the contract.
The case is extremely rare, but you also need to be prepared for it.
Question answer
When drawing up a deed of gift for a car, the donor may be faced with various questions to which he cannot answer. The most common ones include the following:
Is it necessary to indicate the value of the car in the gift deed?
Displaying the value of the vehicle in the gift agreement is not mandatory. However, sometimes a traffic police officer, in order to find fault with something, does not recognize the gift agreement as valid, citing the lack of value of the car in it. This is a violation. In this option you will be able to:
How much does a car deed cost in 2021?
The procedure for drawing up a car donation agreement between close relatives, if filled out with your own hand, will not be very expensive:
Thus, the total cost will be 850 rubles. All contributions can be transferred to terminals located in each traffic police department.
If a gift transaction is carried out between unauthorized persons, the cost of paying tax by the person receiving the gift will be added to the above amount in the amount of 13% of the cost of the car.
When registering a deed of gift for a vehicle with the help of a notary, costs for notary services will be added, which are adjusted depending on the value of the transaction and the location of the region.
Costs for notary services are determined as follows:
The fee for notarization of a gift agreement is presented in the table:
Source
More than three years of ownership
If the vehicle, which came into possession on the basis of a gift, was directly owned for more than 3 years, the tax on gifting the car to a non-relative will not have to be paid. This rule is not influenced by the amount of the sale or any other factors.
The only thing you need to pay attention to is that the period of three years is not an abstract calendar year, but exactly 36 months, that is, the exact time of ownership of the vehicle begins in any month of the year.
To accurately determine it, you will need to look into the gift agreement . Ownership of a car begins on the date specified in the donation agreement. The time of delivery of the car for registration with the traffic police does not affect this period.
