If you sell an apartment cheaper than you bought it. Selling goods at a price below their purchase price: tax implications

Literally in a few days, on March 1, the deadline for filing the income tax return for 2017 expires. the site completes the publication of the answers of the specialists of the Ministry of Taxes and Levies to the readers' questions. Today we are talking about tax intricacies of car sales.

Do I need to file a tax return if I sold two cars cheaper than I bought it?

Question: In 2017, I sold two faulty cars. The sale 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 the income was not received?

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

According to the legislation, income tax is 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 during a calendar year of one passenger car (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 power-driven vehicle. In this connection, income from the sale of the second passenger car during the calendar year is subject to taxation ().

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

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

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

Question: We bought and brought a broken car from Germany, the cost is 6,000 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 indicated at 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 $ 3000. Do I need to file a tax return and pay any taxes?

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

As already mentioned above, the sale by individuals during a calendar year of one car (a car, the technically permissible 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 another power-driven vehicle are 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 the submission of a tax return (calculation) for income tax and payment of tax is not required.

What if you sold a car and a stake in a second car?

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

MNS response:

Under income tax legislation ( subparagraph 1.33 of paragraph 1 of Article 163 of the Tax Code) Income received by individuals from the sale of one vehicle, as well as from property inherited, are exempt, regardless of the above procedure.

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

Many are interested in: will you have to pay taxes when selling a car, while bypassing tax requirements and avoiding additional expenses? The Russian taxation system is considered rather soft compared to Western countries, however, the 13% income tax often causes a lot of indignation. Transport taxes and personal income taxes are an important part of budgets at all levels, and avoiding them leads to very serious troubles.

Car sales and purchase taxes

The sale of cars is one of the types of income, information on which is provided to the tax authority at the place of registration. but car sales are not taxed in all cases, it is important to know a few important nuances... Let's consider the most common situations and frequently asked questions:

• Sold a car: will you have to pay income tax? This tax must be paid only if you have owned a car for less than three years. If 3 years have already passed, then the transaction will not be taxed, and there is no need to file a tax return on it.

Also, you will not need to pay taxes if the value of the sold car does not exceed 250,000 rubles. This is the minimum amount subject to tax, and if the car is cheaper, the seller will not face additional tax costs.

• Will I have to pay tax if the car is sold for more than it was bought? Yes, such a transaction is considered income generation, so it is necessarily taxed. However, you can pay the fee not for the entire amount, but only for the difference between income and expenses, that is, only for the amount of profit.

For example, a person bought a car for 350,000 rubles, and a year later he found a buyer for it for 400,000 rubles. If both sales and purchase agreements and payment documents have been preserved, the tax can only be paid on income, that is, for 50,000 rubles. 13% of this amount will be 6,500 rubles.

• If I bought a car, what tax will I have to pay? When making a transaction, the buyer does not have to pay taxes, since he does not receive profit. In the future, since he became the owner of the car, the new owner needs to bear the tax burden on the transport tax, which depends on the engine power, every year.
• Is there a tax deduction when buying a car? Russia is a welfare state that is obliged to help its citizens. Because of this, when making some large transactions, such as buying a land plot, apartment or house, it is possible to receive a tax deduction. However, when buying a car, this option is not provided for by the tax code. The deduction is not given when buying a new car or when choosing a car in the aftermarket.

At the same time, car sellers can count on the tax deduction. It is 250,000 rubles, and if an expensive car was involved in the transaction, an application for a deduction is submitted to the tax authority. 250,000 is deducted from the profit and only the balance received will be taxed at 13%. Such a benefit will allow you to significantly save money and make the sale of a car more profitable.

Is it worth trying to bypass tax laws

As long as taxes exist, there will always be people who want to find a loophole in the laws and avoid paying taxes, including when selling cars. This is especially true for resellers, who have to part with a part of the profit after each transaction. Because of this, the buyer and seller may be offered several dubious schemes that will get rid of taxes, but can lead to bigger troubles:

1. Purchase of a car through a general power of attorney. Legally, such a deal is not considered a sale at all, so formally the owner will remain the same. Since there is no sale, there is no income tax, but few people think that the annual transport tax must still be paid. As a result, the former owner is forced to pay tax until the new owner re-registers the car. He, naturally, is in no hurry to do this, and the case can drag on for a very long time. However, a general power of attorney is also dangerous for the buyer, since it can be revoked at any time and the car can be returned.
2. The buyer is offered to indicate in the contract a lower amount than it actually is. It should not exceed 250,000 rubles, then the seller will not have to pay tax on sales income. The kind-hearted buyer agrees, gives the money, after which major defects are found in the car. The transaction is canceled, but only the amount specified in the contract is returned to the buyer. It is simply impossible to prove that you actually paid more. Any fraud is based on excessive gullibility and a desire to save money and time.

Failure to pay taxes is initially subject to fines. For individuals, the minimum fine is 1000 rubles, but you still have to pay tax. Wicked defaulters can be fined for large sums, possibly the use of arrest, and subsequently - and the beginning of criminal prosecution.

Calculation of the tax amount

What is the minimum amount of tax on the sale of 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 of 250,000 rubles. Payment:
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. An additional income tax return in the form of 3-NDFL is submitted no later than April 30 of the next calendar year after purchase. The buyer will be required to pay transport tax by November of the following year.

Tax notification usually comes by mail, but for some reason it may be delayed. You can check the availability of debt using the website of public services, where you can also get additional information about various fees and payments.

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

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

This is stated in the Letter of the Federal Tax Service of the Russian Federation for Moscow dated 31.12.2010 N 20-14 / 4 / [email protected] It deals with the following situation. In 2008, an individual, under a preliminary agreement, purchased an apartment in an unfinished building. Its completion date was postponed to December 2010. The fiscal department explained what is the procedure for obtaining a tax deduction for the subsequent sale of this apartment:

The provision of a property tax deduction is related to the presence of expenses for new construction or purchase of an apartment ...

If the apartment was subsequently sold by a taxpayer, such actions do not change the fact that the costs of purchasing it were incurred ...

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

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