When selling a car, it is necessary to transfer 13% of the transaction value to the budget. But that is not all. Taxpayers also need to fill out a report and submit it on time. Read more about how to fill out a tax return when selling a car, read on.
Who should pay tax?
According to Art. 217 Tax Code, citizens who own a car bought less than 3 years ago are required to pay personal income tax. After the specified period, the person is exempt from tax. The same category includes people who sell a car for less than the initial cost. Previously, they must confirm the loss-making transaction, enclosing a copy of the agreement on the purchase of a car and an invoice with the traffic police. Such citizens must still fill out a declaration for the sale of a car that has been in their property for less than 3 years. Attention! This is not about calendar years. The countdown period starts from the moment you purchase the car. Date of registration of the car does not matter.
The timing
Taxpayers are required to submit a report by April 30 of the year following the reporting year. The fee must be paid before June 15 of the same year. If the declaration after the sale of the car was submitted late, the violator is threatened:
- Fine 5% of the amount of the fee for each day of delay.
- A penalty of 40% of the amount of the fee if the delay has exceeded 6 months.
The term of ownership of the car does not matter. If a vehicle that has been owned for more than 3 years is sold, the taxpayer must fill out and submit a declaration. In case of violation of this requirement, he faces a fine of 1 thousand rubles.
Tax benefits
Art. 217 of the Tax Code provides for a tax deduction when calculating the amount of the fee. It is 250 thousand rubles. If the amount of proceeds from the transaction or purchase costs does not exceed the specified limit, then you will not have to transfer the tax to the budget. If more, then the tax is paid on the excess amount:
Personal income tax = (Revenue - Deduction (expense)) x 0.13.
The deduction applies to income from the sale of any number of vehicles during the year. The indicated amount is fixed and not subject to increase. At the same time, it will be necessary to confirm not only the fact of the purchase, but also the fact of paying for the car.
That is, the taxpayer will have to provide an account from the salon and a payment order or receipt from the seller. If any of the documents is not available, then the tax will accept a deduction based on the sales contract. The main thing is that it should contain the wording “all calculations are fully completed”. The phrase will be relevant only in contracts of sale with individuals. Individual entrepreneurs are required to carry out transactions in large amounts only through a bank account.
If the taxpayer does not have documents confirming the costs of acquiring the vehicle (contract, check, payment order, etc.), then he can use the tax deduction.
Nuances
The cost of buying a new car does not apply to income from the sale of the old one. The base for calculating tax can only be reduced by the amount of expenses from the purchase of a sold car.
Example
The taxpayer sells 2 vehicles that he purchased less than 3 years ago. The selling price of the first vehicle is 400 thousand rubles, and the second - 500 thousand rubles. The seller decides to reduce the amount of revenue for expenses when buying cars: 500 thousand rubles. and 200 thousand rubles. respectively. In this situation, many payers make the mistake of calculating the amount of tax as follows:
400 + 500 - 500 - 200 = 200 thousand rubles. x 0.13 = 26 thousand rubles.
How to calculate the amount of tax payable to the budget? Income and expenses are considered separately for each car:
1 TS: (400 - 500) = 0 - transaction tax is not paid.
2 TS: (500 - 200) = 300 thousand rubles.
Personal income tax = (300 + 0) x 0.13 = 39 thousand rubles.
How to prepare a declaration?
When filling out 3-NDFL, the taxpayer needs to prepare 6 sheets:
- Title: personal data, passport details, registration address are indicated here. Section 1 of the declaration of income from the sale of the car contains a detailed calculation of the amount of profit.
- Section 6 contains information on the amount of tax.
- Sheet A reflects the information for the traffic police.
When preparing a report, it is important to correctly indicate the following data:
- The income code is 1520 (income from the sale of property).
- The adjustment number is “0” if the first declaration for the past year is filed.
- OKATO can be found on the website of the Federal Tax Service by entering the tax address.
Today, to quickly fill out a report, you can use the Declaration program. You can download the software on the website of the Federal Tax Service in the "For Individuals" section.
Alternatives
Some taxpayers believe that they have the right to halve the base, that is, apply the income-expense scheme first, and then use the deduction. Under the law, this is prohibited.
Controversial situations arise when selling several cars at once. For example, if a taxpayer wants to apply a deduction in respect of one TS and the other “income-expenses”. There is no direct prohibition on the use of two schemes simultaneously in the legislation.
According to the Ministry of Finance Letter No. 05 / 9-133, when selling two vehicles in one reporting period, the taxpayer can take advantage of a deduction of up to 250 thousand rubles and reduce income by the amount of documented expenses. However, this interpretation is contrary to the provisions of the Tax Code. The law says that you can apply costs instead of deductions. Therefore, tax authorities refuse payers who use two schemes at once when calculating the amount of tax.
Example
During the year, two cars were sold for 280 thousand rubles. and 490 thousand rubles. The taxpayer has documents confirming expenses in the amount of 360 thousand rubles. only in relation to the first vehicle. When calculating the tax amount, two schemes were used at once:
((280 - 250) + (490 - 360)) = (30 + 130) x 0.13 = 20.8 thousand rubles.
If the taxpayer submits such a declaration to the IFTS, he will have to prove the correctness of the calculations through the court.
An example of filling out a declaration when selling a car
The taxpayer in 2016 sold a car for 600 thousand rubles. The purchase price was 550 thousand rubles. He needs to submit a declaration and pay tax in 2017. In this case, it is more profitable to reduce the calculation base by the amount of expenses:
(600 - 550) x 0.13 = 6.5 thousand rubles.
Consider how to fill out a declaration for the sale of a car that has been owned for less than 3 years using the program.
First you need to specify the initial parameters:
- Type of document - 3-NDFL.
- Inspection number - OKATO at the place of residence.
- The adjustment number is “0”.
- The sign is “physical. face".
- Revenues - “income statements”.
Next, the "Information about the payer" is filled in:
- FULL NAME.
- INN
- Citizenship.
- Passport data.
- Address in the Russian Federation - “residence”, when it comes to permanent registration; “Stay” when it comes to temporary registration.
- Contact number.
- OKTMO - 8-digit code from the website of the Federal Tax Service.
Zero declaration when selling a car should contain information about the income of the payer. To fill it out on the tab of the same name in the program, click "+" next to the inscription "Sources of payments". Further information must be entered from the reference 2-NDFL from the accounting department of the enterprise. Income is considered not only salary, but also vacation and sick leave. Enter the information you need monthly total amount.
How do you further fill out the declaration for the sale of a car that has been owned for less than 3 years? The next step is to fill in the income information:
1. Source of payment - full name the buyer.
2. The income code is 1520.
3. Amount - revenue from the sale.
4. Month of income.
5. Deduction code: 906 (if the income does not exceed 250 thousand rubles), 903 (if the income from the transaction exceeds the expense), 0 (if the deduction is not provided).
In our case, it is necessary to select code 906 and in the field “Deduction amount” indicate the cost of selling the vehicle, that is, 550 thousand rubles.
After entering all the parameters, it is enough to simply print the document. Zero declaration when selling a car is filled in the same way. Only in page 040 of section 6 will the amount payable be indicated as “0”.
Reporting
A tax return when selling a car is filed together with:
- Passport payer.
- TIN of the owner of the car.
- Title
- Contract for the purchase of a car (if a deduction applies).
- Contract for sale.
A completed declaration for the sale of a car (less than 3 years of ownership) should be printed and a date and signature should be put on each sheet. Further, the report must either be personally attributed to the Federal Tax Service, or sent by registered letter with an inventory.
Which method is more profitable?
It makes sense to use the “income-expenses” scheme only if the purchase costs exceed 250 thousand rubles. In other cases, it is better to apply a deduction. In addition, the taxpayer will not have to prove the value of the car sold.