Selling a car leads to the receipt of a certain amount of funds by the seller. If he owned the vehicle for less than three years, then he will have to prepare reports to the Federal Tax Service, and in some cases to pay tax. A 3-NDFL declaration must be drawn up when selling a car, which is then transferred to tax officials. If this requirement is not met, then the citizen will have to pay a fine and accrued interest.
When do I need to submit a declaration?
The declaration of 3-NDFL when selling a car is not prepared in every situation. Citizens should report on income received in the following cases:
- a car is sold that has been owned by a person for less than three years, so when it is sold it is necessary to submit a declaration to the Federal Tax Service, and it must be submitted by April 30 of the next year, and it does not take into account whether the car was bought or received as a gift and by inheritance;
- if the tenure is less than three years, then the declaration is submitted to the Federal Tax Service even if the citizen has not received any profit from this transaction, but in this case, if there is evidence of lack of income, you can not pay direct tax.
It is not necessary to submit reports to the tax service only if the car has been owned by a citizen for more than three years. You do not even need to pay tax, even if the car is sold at a high cost.
Document submission deadline
Filling out a 3-NDFL declaration when selling a car is quite simple, but it is important to keep in mind the deadlines set at the legislative level. Reporting is due by April 30 of the year following the reporting year. For example, if the car was sold in 2018, then by April 30, 2019, you must transfer the declaration to the department of the Federal Tax Service.
Additionally, the timing of payment of tax levied on income received is taken into account. You must transfer the required amount of funds before July 15, 2019.
Documentation Methods
The declaration of 3-NDFL when selling a car can be transferred to the department of the Federal Tax Service in various ways. These include:
- sending documentation to the tax service via the Internet, for which you need to use the official website of the institution, as well as the citizen must have a properly executed EDS;
- personal visit to the branch of the Federal Tax Service for the independent transfer of the document in paper form, and it is advisable to use two copies at once so that the employee of the Federal Tax Service stamps one document and indicates the date of acceptance of the documentation;
- use of the assistance of a trustee with a notarized power of attorney;
- sending a declaration and a contract of sale of a car to the Federal Tax Service by mail, for which you need to order a valuable letter, as well as pay an inventory of investments.
The specific choice depends on the desires and capabilities of the direct taxpayer. Most often, citizens themselves prefer to visit the department of the Federal Tax Service. If you choose to send documentation using a letter, it is important to know in advance the current address of the desired department of the service.
What additional documents are needed?
When submitting a 3-personal income tax return when selling a car, you need to prepare some other documents. They act as confirmation of the transaction. Therefore, in addition to the direct declaration, you will have to prepare other papers:
- a sales contract drawn up with the buyer of the property, and the actual value of the car must be indicated in it;
- power of attorney, if all documents are prepared and provided by the representative of the taxpayer;
- passport and TIN of a citizen;
- passport of the sold car;
- payment documents confirming that the citizen really received a certain amount of funds for the sold vehicle.
All these documents are carefully checked by the employees of the Federal Tax Service, as they must make sure that all the information provided in the declaration is reliable.
Drafting Methods
A 3-NDFL declaration must be compiled when selling a car that has been owned for less than 3 years. It does not matter if the citizen received any income from this transaction. Filling 3-NDFL when selling a car is carried out in several ways:
- entering information manually, for which you first have to print the current form;
- filling out a document using a computer;
- the use of special programs, with the help of which the necessary calculations are automatically performed, therefore it is enough to just enter certain information into the program in order to get a ready-made declaration;
- contacting specialized companies offering services for the prompt and correct filling of various reports.
Each citizen independently chooses the best method. A sample of filling 3-NDFL when selling a car can be studied below.
What information is included?
Each taxpayer must understand how to fill out 3-personal income tax when selling a car. If a person cannot perform the process on his own, then it is advisable to contact a specialist requesting a certain fee for his services. When filling out the declaration, the following data must be included in the document:
- personal information about the taxpayer submitted by his F. I. O., date of birth, passport data and TIN;
- information about the sold car;
- amount of funds received from the buyer;
- the period during which the taxpayer was the owner of the property;
- amount of the fee payable.
The amount of tax is calculated automatically if a citizen uses a special computer program to fill out a 3-NDFL declaration when selling a car.
Tax Calculation Rules
Not always when submitting a 3-NDFL declaration to the Federal Tax Service when selling a car, it becomes necessary to pay tax. When determining this indicator, the following rules are taken into account:
- the fee is paid only on the income received, so if a citizen can prove that he did not get any profit from the sale of the car, since the sale price is less than the purchase price, he will not have to pay any funds to the state, but there must be a purchase agreement for this -sales, on the basis of which he originally bought the car;
- if the car was donated or inherited, then personal income tax will be levied on the entire amount received, since it is impossible to prove the existence of expenses for the purchase of the car;
- it is allowed to reduce the tax base by using a special deduction, the amount of which is 250 thousand rubles, so if the cost of the car does not exceed this value, then you do not have to pay tax at all.
The amount of the fee is 13% of the tax base. As this base is the value of the sold car. If the property was sold by a non-resident, then for it the tax rate increases to 30% of the cost of the car.
Calculation Example
For example, a citizen bought a car in 2017 for 540 thousand rubles. He decides to sell it at the beginning of 2019. Since he owned this property for less than three years, he will have to submit a 3-personal income tax return when selling a car.
A man sells a car for 650 thousand rubles. The tax base is represented by the difference between the purchase and sale value, therefore it is: 650,000 - 540,000 = 110,000 rubles. 13% is calculated from this amount: 110,000 * 13% = 14,300 rubles. It is this amount that a citizen will have to pay in the form of tax.
Properly calculated amount should be indicated in the declaration. Correctness of the calculation must be checked by employees of the Federal Tax Service. Therefore, if any discrepancies are revealed, then the citizen will have to submit an updated declaration to the service department.
How to fill out 3-personal income tax when selling a car?
The algorithm for filling out this report is presented in the following steps:
- initially, the necessary information is entered on the cover page, which provides personal information about the taxpayer;
- the first section is intended to indicate data on the amount of tax payable to the budget;
- the second section is used to calculate the tax base and the fee itself;
- List A contains data on the source of income, which is the buyer of the car, so if he is a citizen, then his name is F.I.O., and if the car was bought by the company, then its name, legal address and other details are indicated;
- sheet D2 provides information on the tax deduction used;
- sheet E1 is filled out only if necessary, namely when calculating various social or standard deductions.
Each sheet is signed by the taxpayer, and the date of creation of the documentation is set. If the declaration is compiled in electronic form, then its signature requires the presence of an electronic digital signature. Sample 3-NDFL when selling a car can be studied above.
Penalty for lack of declaration
If a citizen has owned his car for less than three years, then in any case he is obliged to submit a declaration to the Federal Tax Service. Even if he does not receive any profit from this transaction, he will still have to report to the tax service.
The declaration must be submitted by April 30 of the following year. If these terms are violated, then the citizen will have to pay a fine. Its size is:
- 5% of the amount of the fee paid for the income received as a result of the sale of the car is charged monthly;
- the maximum fine is 30% of the tax amount, but not less than 1 thousand rubles;
- if it is not required to pay tax, then the fine is 1 thousand rubles;
- In addition, late fees for penalties and fines are charged monthly.
Therefore, each person who is a responsible taxpayer must correctly approach the process of submitting various reports to the tax service. He will not receive any notification from the employees of the Federal Tax Service, so he must take care of preparing and submitting the declaration to the service department located at his address.
Conclusion
When selling a car, the 3-NDFL declaration will have to be submitted to the tax office if the citizen has owned this property for less than three years. It does not matter if he received any income from the conclusion of such a transaction.
You can make a declaration yourself or with the help of specialists. Documentation can be submitted by various methods, so each taxpayer easily selects the most suitable option for himself. If the declaration is not handed over to the employees of the Federal Tax Service within the established time, this will lead to the calculation of fines and penalties, which are of a significant amount.