Just a few days later, on March 1, the deadline for filing income declarations for 2017 expires. The site is completing the publication of answers from the specialists of the Ministry of Taxes and Duties to readers' questions. Today we talk about the tax intricacies of selling cars.
Question: In 2017, I sold two faulty cars. The selling price was much lower than the purchase price. Both cars were in my property. Do I need to file a tax return?
Question: Tell me, is it necessary to file a declaration if the second car was sold in a year, but no income was received?
MNS response: Yes, tax return (calculation) according to income tax provided no later than March 1, 2018 ( article 180, paragraph 1-1 tax code ).
According to the legislation, incomes are exempt from income tax (except for income received by payers from the paid alienation of property in connection with their entrepreneurial activities), received by individuals - tax residents of the Republic of Belarus from the paid alienation of one car (a car, technically permissible the total mass of which does not exceed 3500 kilograms and the number of seats of which, in addition to the driver's seat, does not exceed eight) or other mechanical vehicle. In this connection, income from the sale during the calendar year of the second car is subject to taxation ().
At the same time, when calculating income tax, the actually produced by an individual and documented expenses associated with the acquisition of the second car sold.
Thus, if the second car is sold cheaper than purchased, which will be documented, then there will be no tax to be paid. At the same time, despite the absence of tax payable, the tax declaration (calculation) for income tax in this situation is subject to mandatory submission.
Question: Bought and brought broken car from Germany, the cost is 6000 euros. It was repaired 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 submit a tax return and pay any taxes? I plan to sell my car this year for $3,000. Do I need to file a declaration and pay any taxes?
MNS response: Submission of your spouse's income tax return (calculation) and payment of tax is not required. 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 ( subparagraph 2.1 of paragraph 2 of Article 153 of the Tax Code).
As mentioned above, the sale by individuals during the calendar year of one passenger car (a car whose technically permissible total mass does not exceed 3,500 kilograms and the number of seats of which, in addition to the driver's seat, does not exceed eight) or another mechanical vehicle is exempt from tax ( subparagraph 1.33 of paragraph 1 of Article 163 of the Tax Code). Thus, if during 2018 you receive income only from the sale of one car, then you do not need to submit an income tax return (calculation) and pay tax.
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 of the second car, which is also the same individual person (because the second share of the car was inherited by a minor and technical certificate could not be issued on it) was sold in the same year. Thus, an individual actually sold 1.5 cars during the calendar year. If tax must be paid, then from what amount of the transaction (100% or 50%) and is there tax incentives for individual when paying this tax, who has two minors as dependents?
MNS response:
Under income tax law subparagraph 1.33 of paragraph 1 of Article 163 of the Tax Code) exempted are income received by individuals from the sale of one vehicle, as well as from property received by inheritance, regardless of the above procedure.
Thus, if during 2017 you received income from the sale of one car and an inherited share in the ownership of a second car, you do not need to submit an income tax return (calculation) and pay tax.
Let's try to figure out what determines the size of the tax payment, whether it is necessary to pay it in your case and how this can be done.
Sergey Lyalikov, a car lawyer and human rights activist, gave the portal a consultation on this matter.
Any citizen receiving a certain income must pay the state 13% of this amount. When it comes to wages, the employer is in charge of the tax. If you intend to sell the property (and thus receive income!), Then you will have to interact with the Federal Tax Service (FTS) on your own.
However, all of the following does not apply to persons who owned a car for 3 years or more before it was sold. Income from the sale of such a car is generally not subject to taxation in accordance with paragraph 17.1 of Art. 217 of the Tax Code of the Russian Federation and there is no need to inform the tax authorities about the fact of the sale of such property.
Please note: the period during which the car was owned by the taxpayer is calculated not from the moment it was registered with the traffic police, but from the moment the car was acquired into ownership. Accordingly, the day of the end of this period is the day of the conclusion of the transaction on the sale of a car to a new owner. In other words, if a person purchases your car at the end of December 2014, but registers it at the beginning of January 2015, the Federal Tax Service will assume that you received income in 2014.
Submit an income tax return to the Federal Tax Service and indicate there the amount received from the sale of the car. Even if for one reason or another you do not owe the state a single ruble. We will talk about the deadlines and methods for filing a declaration, as well as sanctions for failure to submit it, below.
What will serve as confirmation of the period of ownership of the car and its value?
Such a document can serve. Just in case, we recommend that you keep copies of all car deals that you have ever entered into. It is necessary that the fact of transferring money to the seller be documented. The proof can be a check, a stub from receipt order, a certificate of depositing money into the account or, in extreme cases, a receipt.
If you have owned the car for more than three years, as mentioned above.
- If you can document that you are selling the car cheaper than you bought it, that is, not the income you received from the sale of the car is offset by the costs incurred earlier.
-If you sold the car for less than 250 thousand rubles.
The last point is worth a closer look. 250 thousand rubles is the limit of the property tax deduction, which is provided for by the modern version of the Tax Code. By this amount, you can legally reduce the taxable base (in this case, the amount received from the sale of the car). If you cannot document that you bought a car for more than you are selling, submit an application for a tax deduction along with the declaration (it is not automatically granted). Then the tax amount will be calculated using a simple formula: (Sales amount - 250,000) * 0.13. Accordingly, if you sell a car cheaper than 250 thousand, then the tax base will be zero.
In this case, you should be guided by the formula that we gave above: subtract the purchase amount from the sale amount and multiply the result by 0.13. That is, if you bought a car for 500 thousand rubles and sell it for 600 thousand, then you will pay tax from 100 thousand. However, even if you get some benefit, but sell the car for less than 250 thousand rubles, you still have the right to use tax deduction and pay nothing to the state.
You can submit it in three ways:
- Personally come to the district department of the Federal Tax Service and fill out the declaration form there.
- Send the completed declaration to the Federal Tax Service by a valuable letter with a description of the attachment.
- Send a declaration through the website of the Federal Tax Service r78.nalog.ru. In the relevant section on personal income tax (PIT) there is a link to download the required form from detailed instructions for filling in, as well as - a special computer assistant program "Declaration 2010".
You must notify the Federal Tax Service of your income the next year after you sold the car. If you made a transaction in 2014, then in 2015 you had to file a declaration before May 3, 2015. Deadline information varies from year to year, and usually the “deadline” for the next year is made public at the end of the previous one. So if you are selling your iron horse now, don't forget to check out r78.nalog.ru in December 2014.
According to Article 119 of the Tax Code, failure to submit a declaration within the established time limit is punishable by a fine of 5% of the tax amount for each full month from the deadline for filing the declaration, but not more than 30% of this amount and not more than 1,000 rubles. And since you did not tell the Federal Tax Service how much you sold the car for, the tovas will most likely face a minimum fine of 1,000 rubles.
The legislation provides such an opportunity: according to clause 38 of the Order of the Ministry of Internal Affairs No. 1001, which regulates the rules for registering vehicles, MREO employees are required to return the original car purchase agreement they have if you submit a written application.
The "sale" of a car by proxy is not legally a sale and purchase transaction, since nominally the owner does not change. If you sell the car by proxy already three years after the purchase, or you know for sure that the buyer will not resell it under the contract until the expiration of this three years ownership, you don't have to worry about filing a declaration.
Another thing is if you owned a car for less than three years and then sold it for a "general price". Ask the buyer to notify you in a timely manner if he decides to formalize it for himself or resell it under an agreement. Then you will be able to know exactly when you need to file a declaration and avoid sanctions from the Federal Tax Service. You should not sell the car by proxy if you are not familiar with the buyer and do not have the opportunity to quickly contact him.
Many are interested in: will you have to pay taxes when selling a car, while circumventing tax requirements and avoiding additional expenses? Russian system taxation is considered quite soft, compared with Western countries, however, the 13% tax on income often causes a lot of indignation. Taxes on transport and personal income are important part budgets of all levels, and avoiding them leads to very serious troubles.
The sale of cars is one of the types of income, information about which is provided to the tax authority at the place of registration. However car sales are not taxed in all cases, it is important to know a few important nuances . Consider the most common situations and frequently asked questions:
Also, you will not need to pay taxes if the value of the car sold does not exceed 250,000 rubles. This is the minimum amount subject to taxation, and if the car is cheaper, then the seller does not face additional tax costs.
For example, a person bought a car for 350,000 rubles, and a year later he found a buyer for it already for 400,000 rubles. If both contracts of sale and payment documents preserved, the tax can only be paid on income, that is, on 50,000 rubles. 13% of this amount will amount to 6500 rubles.
At the same time, car sellers can count on a tax deduction. It is 250,000 rubles, and if an expensive car was involved in the transaction, then an application for a deduction is submitted to the tax authority. 250,000 is deducted from the amount of profit, and only the balance received will be taxed at 13%. This benefit will significantly save and make the sale of the car more profitable.
As long as there are taxes, there will always be people seeking to find a loophole in the laws and avoid paying taxes, including when selling cars. This is especially the case for resellers who have to part with part of the profits after each transaction. Because of this, the buyer and seller may be offered several dubious schemes that will save you from taxes, but can lead to bigger troubles:
Failure to pay taxes is subject to penalties at first. For individuals, the minimum fine is 1000 rubles, but you still have to pay tax. Malicious non-payers can be fined large sums, perhaps the application of arrest, and subsequently - the beginning of criminal prosecution.
What is the minimum amount of tax when selling a car, and how exactly is it calculated? The amount of tax on the sale of a car depends on the amount of the transaction and on the availability of a tax deduction. Calculation example:
Citizen A. sold a car worth 650,000 rubles, he owned it for only two years. The seller received a tax deduction in the amount of 250,000 rubles. Calculation:
650,000 - 250,000 \u003d 400,000 rubles - this is the amount that will be taxed.
400,000 * 13% \u003d 52,000 rubles - this is how much you have to pay in the end. Tax return about additional income in the form 3-NDFL is submitted no later than April 30 of the next calendar year after the purchase. The buyer will be required to pay transport tax until November next year.
The tax notice usually arrives by mail, but for some reason it may be delayed. You can check the availability of debt using the public services website, where you can also get additional information about various fees and payments.
Last updated January 2020
If you sold your car for more than you bought, then you made a profit, so 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 its acquisition:
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 taxed on the sale of a car in 2020? The calculation of personal income tax in these years is the same, there are no new changes in the legislation on this issue yet. Unless with regards to non-residents, which we will talk about a little later.
A car was sold (less than 3 years old) for less than 250,000 rubles. The declaration is submitted to without fail. But the tax is not paid, since 250 thousand rubles is a non-taxable amount (the size of the property deduction).
Example: A citizen bought a car in 2018 for 500,000 rubles, sold it in 2019 for 230,000 rubles. (because the transport was in disrepair). There are documents confirming the purchase and the amount of the sale (receipt agreements). A car is sold cheaper than the purchase price - there is no income, there is no taxable 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 bought a car for 900,000 rubles, a year later he sold it for 1,150,000 rubles. The tax amount will be (1,150,000-900,000) * 13% = 32,500 rubles.
The car is less than 3 years old, sold cheaper than bought, there are supporting documents. The declaration is submitted, but since there is no income, you will not have to pay tax.
Example: A citizen bought a car in 2018 for 450,000 rubles, sold it in 2019 for 420,000 rubles. There is a purchase agreement and documents for the sale. There is no taxable base (the sale price is lower than the purchase price).
A car was sold for more than 250 thousand rubles, but there are no documents proving the purchase amount. The declaration is submitted, the tax is paid on the amount exceeding 250 thousand rubles.
Example 1:Purchased a car for 600 thousand rubles, sold for 500 thousand. The car was sold cheaper, but since there are no documents for payment upon purchase, the 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 the tax is paid on the difference (400,000 - 350,000) * 13% = 6,500 rubles. If there are no documents on payment upon purchase, then the amount of tax on the 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 several cars in one 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 old). There are no purchase documents. Since 100,000 + 120,000 rubles. = 220,000 rubles. less than the tax deduction (250,000 rubles), the declaration is submitted, but the tax is not charged or paid for any car.
Example 2: In 2018, a citizen sold a car for 350 thousand rubles, there are no documents confirming the purchase amount. He took advantage of a tax deduction of 250 thousand rubles. in 2019 by paying (350 -250) * 13% = 13,000 rubles. And in the next 2020 also sells a car, less than 3 years of ownership. You can also count on a deduction of 250 thousand rubles.
The declaration is submitted one for the entire volume of sales in tax year. That is, not for each vehicle individually. But income and deduction / expenses are taken into account in a separate line for each transport separately.
Example: The car owner sells a Volvo in 2019 for 300,000 rubles, which he purchased earlier for 200,000 rubles. and Mercedes for 1,000,000 rubles, bought for 1,100,000 rubles. For the first car, you can use 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 IFTS 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 for a new owner in the traffic police. And although the date of the sale and purchase agreement, the date of registration with the traffic police, the amount of the transaction are transferred by the traffic police to tax service only after the registration of the car, the obligation of the seller to file a declaration and pay tax (if a profit is made) arises from the date of the contract and receipt of the proceeds from the sale.
If the owners of the transport are more than one person, then the deduction is distributed between them in proportion to their shares in the property.
Data on the amount of the transaction are received by the IFTS from the traffic police. When checking the declaration, the tax inspector checks the data of the taxpayer with the data of the traffic police. At the local level, issues in the event of the absence / loss of a sales contract confirming the amount of expenses when buying a car or the amount of income when selling a car are solved differently. And to successfully fix the problem, you can:
The documents that confirm the payment for the purchase of a car include:
Also, among the expenses for the purchase of a car include other payments associated with the purchase.
There are specialized organizations or individuals who help you find the right car. They check the technical condition, drive the transport from the seller to the buyer (when the parties to the sale and purchase live in different cities), draw up an agreement 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 as contracts between the buyer and the contractor, as well as payment documents (receipts, cash receipts, etc.).
Available in type of personal income tax paid upon receipt of 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, a tax return.
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, a citizen got a car by will. The cost of the car was 5 million rubles. and in order to obtain a certificate of inheritance, they were paid an assessment in the amount of 15,000 rubles. and paid a fee of 30,000 rubles. Not later than 3 years from the moment of entering into the inheritance, the heir sells the car for 3 million rubles. The car dealer can reduce tax base up to 2,950,000 rubles (3 million - 30,000 rubles - 15,000 rubles).
There are expenses that cannot reduce personal income tax in any way:
For example, a citizen in 2019 purchased a car for 1.5 million with an installment plan of 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 the sale he owed the seller 500,000 rubles. When calculating tax, only 1 million rubles can be accepted as an expense. Accordingly, the amount of personal income tax will be equal to: 78,000 (1.6 million - 1 million x 13%) rubles.
Any expenses individual entrepreneur, or the owner of a car who does not have the status of an individual entrepreneur, but actually used the transport as a commercial one.
When a citizen-non-entrepreneur buys a commercial vehicle (bus, truck), but uses it for himself, then the costs of acquiring such a car are accepted to reduce personal income tax.
The issue of offset remains controversial costs for operational repairs and re-equipment/re-equipment car (installation of gas equipment, air conditioning, etc.). For tax officials, this question causes different opinions:
If car improvements were expensive and documented, then you can fight for your right.
Individuals (whether they are foreigners, or citizens of the Russian Federation, or without citizenship at all), who are absent on 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 there is a rule for them 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 the rules for deducting (25 thousand rubles) and using expenses (reducing the sale price by the cost of an early purchase) cannot be applied by non-residents. This privilege is only for residents of the Russian Federation.
In the year the car is sold, nothing is declared or paid. The obligation to report for the sale of the machine arises in the following year:
You can submit a declaration in person or through a representative by proxy or by mail with a list of attachments (the date of departure is considered the date of acceptance of the tax). It is also allowed to declare through the "personal account" on the website of the Federal Tax Service.
For not submitting a declaration a fine of at least 1000 rubles(even if there is no tax payable) and even after paying a fine, a declaration must be submitted. The exact penalty is determined as follows: 5% for each month of the amount of tax due, starting from May of the year fixed for its submission(not less than 1000 rubles and not more than 30% of the tax amount).
For late payment of taxes fine. Size 1/300 key bank rate for each day of delay. Penalty starts to count from July 16 of the year of submission of the declaration.
The tax office conducts its audit on the basis of traffic police data. After that, he checks the calculation or calculates the tax on his own (regardless of whether the declaration is submitted or not). If the declaration was not submitted, the IFTS will not accept either a deduction in the amount of 250,000 rubles or the cost of purchasing a car. In order to reduce personal income tax amount will have to challenge the decision of the inspection, including in court.
You can fill out the declaration yourself, there is NOTHING DIFFICULT in this. It is not prohibited to apply to specialized organizations involved in filling them out (the cost of the service is from 500 to 1500 rubles).
To complete the declaration, you will also need:
It is most convenient to use the program, you can download it here Declaration 3NDFL for 2019. After installing it, you need to enter information about yourself, your income and expenses, this is not at all difficult.
Section: Setting Conditions
Section: Information about the declarant
Section: Income received in the Russian Federation
Source of payments: click on the green "+"
Income information: click on the green "+"
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" the correctness of filling, click "view" and make sure that there are no errors. Then print out in 2 copies, one is handed over to the IFTS at the place of residence, the other remains with you (the tax mark on the date of receipt of the declaration is put on it).
When submitting the declaration, attach payment documents and contracts, as well as an application, the sample of which will depend on the deduction code 903 or 906. Samples can be downloaded here (see above).
If you have questions about the topic of the article, please feel free to ask them in the comments. We will definitely answer all your questions within a few days.
371 comments
Good afternoon, I put code 1520 in the section "income received in the Russian Federation .." but sheet E 1 has not changed to D2. There is also a "deductions" section - if you remove all the checkmarks there, then only 4 sheets come out (where is the fifth one?). I don't understand what am I doing wrong? according to your answer, where you describe what E1 is (why should I?) there is no exact answer.
Tsyganova Svetlana
Hello Olga. You did not describe in detail your situation and your numbers that you want to enter in the declaration, and I am not a telepath to guess what you WANT to put and what you actually SPECIFIED in the declaration. There are a lot of options when submitting 3 personal income tax, the population receives various deductions and declares its various incomes for the whole year and indicates several types of income and deductions, all in one single declaration.
I can’t guess what kind of report you are submitting, maybe you still have deductions (for an apartment, treatment, education), so I write down what is indicated on sheet E1.
I repeat once again, in addition to income 1520, you must indicate the expense code, then sheet D will appear
Also, you do not write what tax is due, which is important.
I sold the car for 250 tr. and only on this occasion I want to file a declaration (the car has been owned for less than 3 years). I chose income code 1520, and code 906. - and what tax is payable - where can I see it?
Tsyganova Svetlana
If you write an application to the IFTS with a request to provide you with a tax deduction of 250,000 rubles, then when filling out the declaration, put the deduction code 906 and the amount of 250,000. Then sheet D2 should appear, which indicates the sale amount and the deduction amount, 250 thousand rubles each . in sheet D2 in lines 110 and 120. The tax payable is visible on sheet 2 Section 1. In your case, only the BCC and the OKTMO Code will be indicated there, the tax payable is 0.
To avoid sheet E, you need to uncheck the DEDUCTIONS (Give standard deductions). And then the entire declaration will be on 5 sheets, there is no tax payable.
Thank you so much for helping idiots like me!!! everything worked out!!!
Hello, my husband was killed and I entered into the right of inheritance. In 2015, she sold an old combine for 80,000, but did not submit a declaration. I am retired and live in the countryside. Will I be fined for not filing a declaration and how much? Thanks in advance for your help!
Tsyganova Svetlana
Hello Irina. Yes, you will be charged a fine of 1000 rubles, pensioners are not exempt from the obligation to file a declaration in a timely manner. You need to submit it anyway, albeit late, but necessary. If the declaration is not submitted, then you may be deprived of the deduction and the tax will have to be paid 13% of the sale amount (from 80 thousand rubles). Because there is no tax payable (you write an application for a deduction of 250,000 rubles), then you will not be charged a fine of 20% of the amount or a penalty fee, but you will be charged -1000 rubles for late filing of the declaration.
Thanks for the help! Merry Christmas! Health and longevity!
Please tell me if I sold the car, but 3 years have passed since its purchase. Do I need to file a declaration too?
Hello Andrey. Yes, you get a tax of 18200 and you have to pay it. The tax authorities do not accept any expenses for repairs, etc., for offsetting expenses. She recognizes only the price that is indicated in the DCT of the car when she bought it. As for the receipt, read the comments, we have already answered such questions several times, we will not repeat ourselves and clog the air.
You shouldn’t have been so reckless to sign a contract with an underestimated amount, you always need to indicate the real value, otherwise you will be a big loser when selling, well, or you wouldn’t sell a car until December 2016, more precisely until January 2017, then the obligation to file a declaration and pay tax is not would have arisen.
I repeat the question. In April, I bought a car from an LLC with a faulty engine, about which there is an opinion of an independent expert for 100,000 rubles. Repair cost more than 700t.r. In December, I handed over to the salon for a trade inu for 1,000,000 rubles. Will the repair amount be tax deductible?
Thank you.
Tsyganova Svetlana
Hello Marina. Your situation is controversial, and as a rule, the tax expenses for repairs are not accepted for offset. Much depends on what repair documents you have. It is to them that the attention of the inspector will be drawn. If there is an agreement with the organization that carried out the repair, there is a clear list of works 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 repair in expenses. But, in my opinion, the chances are not great.
Firstly: you can take into account the amount for which you purchased the car, if there is an agreement and all documents confirming the payment.
Secondly: write a cover letter in which you indicate that the car had a faulty engine and needed a major overhaul, attach an expert's assessment.
Third: Repair costs must be clearly documented. There must be an agreement with the company where the repairs were made, the types of work, their cost, and payment documents are clearly indicated.
If there are no such documents, the tax expenses will not be credited and the tax will have to be paid using only the deduction of 250 thousand rubles.
As part of the main package of documents, a written explanation of the taxpayer should be submitted to the tax inspectorate, in which it should be indicated that the car was purchased in advance faulty, that is, unsuitable for its intended purpose. In order to obtain property corresponding to its purpose, it was necessary to carry out several significant legal actions: to purchase an object and carry out special and necessary repair work. Such works are included in the list of actions related to the acquisition of the product, as they restore its functional affiliation. In addition, the original purchase included a significant discount, implying subsequent spending by the new owner to bring the car to its proper condition. This is confirmed by the contract of sale and the conclusion of the expert.
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, the tax you have turned out to be zero. The IFTS checked the declaration and applied a deduction in the amount of 250,000 rubles, that is, the "cleaned" income amounted to 50,000 rubles, which is subject to taxation.
Of course, you are right, but you did not provide sufficient data on this. From the current situation it can be seen that 10,000 rubles. you paid, and the rest of the amount was paid by an outsider, that is, this amount is not your expenses, but, in fact, a gift to you from a common-law husband.
You should clarify the situation in more detail. Show that the money is yours, and the civil husband carried out your order, since you yourself, due to your state of health, could not do this, but you had to under the terms of the transaction. That is, in addition to the purchase agreement, payment documents, an explanation should have been submitted to the tax office from you and your common-law husband (about the circumstances under which he received money from you and how he fulfilled your order), it was even possible to draw up some kind of agreement / receipt "rear number" on the issuance of an order, etc., provide evidence of where (from what sources) you took the money for the car, sick leave, confirming the difficulty of a personal visit, etc.
But it's not too late to fix the situation. Objections should be written to the cameral act (within 1 month after receipt of the inspection act), attaching all the above documents and detailed descriptions. If a decision has already been made (the act has been considered), then an appeal should be written 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. I received a car under a donation agreement in 2015. Car is in broken condition. I spent 1.5 million rubles on restoration. In 2016, he sold it for 2 million rubles. Does it count towards income tax? After all, I spent 1.5 to get 2 million. I read the comments previously published, but there only about retrofitting and operating costs, but here is restoration.
Tsyganova Svetlana
Hello Igor.
The tax code only states “acquisition costs”, i.e. the amounts specified in the contract of sale of the car.
Tax takes into account only them. Other expenses, as a rule, are not accepted by the tax authorities.
You can try, but the chances are slim. If you have documents (contract and payment documents from organizations) confirming each ruble of expenses for its restoration, you can try to provide them, but everything will depend on what documents these are and for what. You also need an expert opinion that the car was in a post-accident state, etc. See the previous comment on this topic Marina 01/10/2017.
The main disadvantage for you is that a car that is in disrepair (not subject to disposal) can be freely registered (registration of information about the new owner is carried out), that is, a transaction for the acquisition of a vehicle, as well as registration with the traffic police, are made regardless of technical condition. The IFTS 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 rubles. The problem is that in 2017 they forgot to file a declaration in the form of 3-NDFL. It is clear that now we will get a fine of 1000 rubles ... .. We saw a notice about this in personal account taxpayer only in February 2018. Tsyganova Svetlana
Hello Ekaterina. There will be no tax payable, because you can use the deduction of 250,000. In the declaration, indicate the lines of sale 200,000, deduction 200,000. Tax = 0. But it is mandatory to submit a declaration.
Currently, many organizations are forced to sell goods at a price below the purchase price. Some accountants doubt the legitimacy of such actions. Read about the tax consequences of such transactions in the material prepared by the specialists of the 1C: Consulting.Standard project.
The basis for writing the material was the question received on the consultation line of the project "1C: Consulting. Standard":
Russian legislation does not contain a ban on the sale of goods at a price lower than the purchase price. Therefore, of course, you can sell this product for 600,000 rubles.
But in this case, one should keep in mind the possibility of adverse tax consequences.
Referring to the unprofitability of the transaction, the inspectors declare about the absence in the actions of the taxpayer reasonable business purpose and about getting them unjustified tax benefit in the form of illegal VAT refund from the budget. At the same time, they try challenge the right to deduct "input" tax on this product. And in this case, the judges support controllers quite often.
So, for example, the Federal Antimonopoly Service of the East Siberian District, in its decision No. A33-5877 / 05-F02-7258 / 06-C1 dated January 17, 2007 in case No. A33-5877 / 05, supported the tax authorities, indicating that the operations performed by the taxpayer were not economically viable, because the purchase price of the goods was higher than the selling price for export.
In the resolution of the Federal Antimonopoly Service of the Volga District dated March 29, 2006 in case No. A12-27621 / 05-C21, the judges concluded that there was no reasonable business purpose, since transactions were obviously unprofitable for the taxpayer.
And the Federal Antimonopoly Service of the West Siberian District refused to deduct VAT from the taxpayer, since the purchase price of the goods was overstated seven times, and the subsequent the selling price did not cover all the costs of the taxpayer. The court also noted that similar business transactions are not carried out, unless they are covered otherwise(Decree dated August 10, 2005 in case No. F04-5166/2005(13823-A46-18)).
Fortunately, there are also enough examples of court decisions in favor of taxpayers in arbitration practice. For example, in the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation of June 20, 2006 No. 3946/06 in case No. A40-19572 / 04-14-138, the arbitrators concluded that the fact of selling goods for export at a price lower than the purchase price goods from a Russian supplier, by itself, regardless of other circumstances of a particular case, cannot testify to the bad faith of the company and be considered as an objective sign of bad faith.
Similar conclusions can be found in the decisions of the Federal Antimonopoly Service of the Moscow District dated March 11, 2008 No. KA-A40 / 1209-08 in case No. A40-35330 / 07-99-146, the Federal Antimonopoly Service of the Volga District dated January 15, 2008 in case No. A65-1289 / 07- CA3-48, Federal Antimonopoly Service of the Ural District dated June 13, 2007 No. Ф09-4305/07-С2 in case No. A07-28178/06, Federal Antimonopoly Service Central District dated February 19, 2008 in case No. A35-1831 / 07-C18.
In the Resolutions of the Presidium of the Supreme Arbitration Court of the Russian Federation of February 28, 2006 No. 13234/05 in case No. A40-245 / 05-117-4 and of February 28, 2006 No. 12669/05 in case No. A40-3898 / 05-118-48, it is indicated that the fact Selling a product at a price below the purchase price is not evidence that there is no reasonable business purpose.
And the Federal Antimonopoly Service of the Urals District, in its decision of February 11, 2008 No. F09-208 / 08-C2 in case No. A71-4398 / 07, stated that by itself the fact of lack of profit does not indicate bad faith of the taxpayer, as well as the absence of a real economic effect from relationships with these suppliers.
The judges also point out that right to use tax deductions not dependent on profit received by the taxpayer. In accordance with Art. 2 Civil Code of the Russian Federation entrepreneurial activity is independent and carried out at its own risk, that is, as a result, the activities of the organization may turn out to be both profitable and unprofitable (Decree of the Federal Antimonopoly Service of the Moscow District dated January 21, 2008 No. KA-A40 / 12666-07 in case No. A40-67664 / 06-75- 390).
Similar conclusions are contained in the resolution of the Federal Antimonopoly Service of the Moscow District dated August 14, 2008 No. KA-A40 / 6296-08 in case No. A40-59005 / 07-129-351. The court rejected the inspectorate's argument about the unprofitability of the taxpayer's activities, indicating that this fact is not a basis for refusing to refund VAT, since current legislation does not link the right to apply the deduction to the existence of profit or loss, that is, with the profitability of transactions.
Another example from arbitration practice. In our opinion, it can be useful in the situation under consideration. This is the decision of the FAS of the Central District of 06/04/2008 in case No. A54-2364 / 2007C21. In making its decision, the court rejected the argument tax authority on the unprofitability of the transaction and indicated that the taxpayer sold the goods at a price lower than the acquisition due to a decrease in its quality. Of course, when using this argument, the taxpayer must be prepared to confirm the fact of a decrease in the quality of the goods.
According to paragraph 1 of Article 40 of the Tax Code of the Russian Federation, for the purposes of taxation, the price of goods, works or services specified by the parties to the transaction is accepted. Until proven otherwise, this price is assumed to be corresponds to the level of market prices.
The tax authorities have the right to check the correctness of the application of transaction prices only in the following cases (clause 2, article 40 of the Tax Code of the Russian Federation):
If the price of the goods differs from the market price by more than 20%, the tax authorities have the right to check the correctness of the application of prices and make a reasoned decision on additional tax and penalty charges, calculated in such a way as if the results of this transaction were assessed based on the application of market prices for the relevant goods (clauses 2 and 3 of article 40 of the Tax Code of the Russian Federation).
At the same time, Art. 40 of the Tax Code of the Russian Federation contains the principles for determining market prices. Note that, according to paragraph 3 of Article 40 of the Tax Code of the Russian Federation, when determining the market price discounts may apply caused by:
In this case, if, taking into account the provisions of Article 40 of the Tax Code of the Russian Federation, the tax authorities come to a reasonable conclusion that the price of goods applied by the taxpayer deviates from the market price by more than 20%, they have the right to charge additional taxes based on market prices. At the same time, both VAT and income tax, as well as the corresponding penalties for these taxes, will be charged additionally.
Note! When applying Article 40 of the Tax Code of the Russian Federation, the disputed price must be compared precisely with market prices for identical (homogeneous) goods. Comparison with the purchase price of the goods (with the cost of products, works, services) is not allowed. The Supreme Arbitration Court of the Russian Federation drew attention to this more than once. Thus, in the Information Letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated March 17, 2003 No. 71 (paragraph 4), the judges pointed out the invalidity of the decision of the tax authority on additional tax assessment under Article 40 of the Tax Code of the Russian Federation for the reason that the tax authority during the audit did not investigate the issue of the level of deviation transaction prices from market prices. Wherein market prices were not set at all, and in order to recalculate income tax used the indicator of the cost of services(services were sold at prices below cost).
Not so long ago, the highest judicial body confirmed its point of view on this issue (see Ruling of the Supreme Arbitration Court of the Russian Federation dated May 6, 2008 No. 5849/08). In deciding to charge additional value added tax, penalties and fines to the company, the inspectorate proceeded from the fact that, by selling goods below the purchase price, society works at a loss. The judge did not take into account the argument of the tax authority about understating prices below the cost price, since the issue of establishing the market price of the goods was not investigated by the inspection.
