Citizens who have spent money on the purchase of property or payment for some services, the Tax Code of the Russian Federation provided compensation for part of the costs - 13% of the total amount. If there are no questions about the sale of an apartment, then the return of income tax when buying a car causes a lot of problems. The car is not real estate. Then how to get the funds back?
The essence
Refund of income tax when buying a used car allows you to save on tax payments. If the car has been owned for more than 3 years, the owner is exempted from paying personal income tax. Since 2010, such transactions are not subject to mandatory tax declaration.
If the car is less than 3 years old, the owner must pay a tax at a rate of 13%. This amount can be reduced by a maximum of 250 thousand rubles. This is the essence of the income tax refund when buying a car. In order not to pay the fee, car owners reduce the cost of the vehicle. When several properties are sold within one year, the deduction is applied one for the entire property, and not for each property separately. If the property has been in possession for less than 36 months, the individual must submit a declaration by April 30 of the next year, and pay tax by June 15.
Even at the stage of buying a car, the owner should think about the question of whether he is going to sell it in the future. If yes, then you must keep all documents confirming the purchase amount (invoice, purchase agreement, seller's receipt of receipt of money). If the vehicle is imported from abroad, then all documents on the transaction must be certified by a notary, and also keep the receipt of payment of the duty.
Alternative way
There is another way how you can get your income tax refund when buying a car. Sometimes it makes sense to reduce the tax on the cost of purchasing a car. The sale amount is reduced by the purchase amount. A fee is payable on the difference received.
Deduction
In addition to the case discussed above, tax relief is provided in the following situations:
- housing construction;
- obtaining a mortgage loan;
- tuition payment;
- treatment;
- purchase of a VHI policy;
- registration of voluntary pension insurance.
Excessively withheld tax is paid by reducing the amount of personal income tax, which must be transferred to the budget for the current period.
Documents
To apply for a refund of income tax when buying a car, you must provide to the UFTS:
- certificate 2-NDFL for the year;
- copy of your passport;
- a copy of the sales contract;
- owner's documents;
- a completed 3-NDFL declaration;
- documents confirming the transfer of funds.
The most problems for citizens are filling out the declaration. Incorrectly specified bank details, the presence of joint ownership (with a mortgage loan), lack of certificates confirming expenses are the most common reasons for refusal to pay.
Personal income tax from individuals
The amount of the benefit is determined by the type of transaction: purchase of an apartment, payment for treatment, income tax refund when buying a car. Changes since 2014 have affected the limits for the deduction. If we are talking about buying real estate, then no more than 260 thousand rubles are subject to return. In the case of a mortgage loan - up to 13% of the commission amount, tuition / treatment fees - 15.6 thousand rubles. for an adult and 6.5 thousand rubles. for each child, charity work - 25% withholding tax.
Timing
The return of personal income tax is a lengthy procedure. After submission of documents for deductions, the tax office conducts a painstaking check within three months. If, based on its results, it is decided to return the overpaid amounts, the funds are transferred to the specified account within a month. Thus, if the documents are drawn up correctly, the duration of the procedure takes at least 4 months. Even if you get rejected, you shouldn't be upset. The taxpayer has three years to collect and process papers.
Procedure
You can get a discount when selling a car that has been in use for less than 36 months. If the transaction amount is less than 250 thousand rubles, then in order to receive a deduction, a copy of the TCP and the purchase agreement must be attached to the declaration. If the income is higher than the specified amount, the difference is taxed at a rate of 13%.
If the vehicle belonged to several persons at the same time, then the declaration is submitted for each owner separately, and the deduction is carried out either by agreement or in proportion to the share.
If the vehicle has been in operation for more than 3 years, a different tax benefit is provided for by law. He may not tax the income received and not submit a tax return.
Refund of income tax when buying a car on a loan from the Tax Code is not provided. Payers can reduce income by the amount of interest paid on a loan for construction, purchase of housing. The Tax Code does not say anything about the deduction in the event of a vehicle purchase.
In connection with the constant changes in the tax legislation, the question more and more often arises: is there a tax deduction when buying a car?
Many citizens of the Russian Federation have already seen from their own experience the pleasant possibilities of providing property tax deductions when purchasing real estate. Therefore, a 13 percent return on the purchase of a car looks quite logical.
Cars are expensive. The situation is aggravated by the fact that most cars are bought with credit funds. If it were possible to get a tax refund on the purchase of a car, then this additional money would be a good help for paying the installments on the loan.
Let's figure it out:
- in which cases a 13% tax refund is required upon purchase;
- what are the tax deductions;
- how you can save money when selling;
- and how NOT to save.
The law of the Russian Federation provides for benefits for the categories of citizens specified in the legislative documents. One of these options is reduced to the return of the previously paid tax on income, in the amount of 13%.
The money can be returned to citizens who, during one calendar year, paid personal income tax to the state and incurred any expenses. The return of 13 percent will be made to those citizens who spent money on:
- Purchase or construction of real estate;
- Getting an education;
- Therapeutic and diagnostic medical procedures;
- Charity.
For more information about deductions, see. All these expenses are essential for life, and therefore tax breaks are provided for them. The purchase of a car is not included in the list of basic necessities. That's why it will not be possible to return 13% of the purchase of the car.
How can you save
On the other hand, tax breaks are imposed not on the purchase, but on the sale of vehicles. The main thing is to know all the subtleties of the law. It is about these secrets that we will now talk about.
For some, it may be a revelation, but taxes must be paid on any profit. If you received a profit from the sale, please share it with the state. Such a law ...
From the money received from the sale of the car, it is also necessary to pay 13% of the profit received.
A little about rules and reporting
Example... Citizen Diesel R.N. sold his minibus in 2016. Now he must complete and submit a 3-NDFL tax return by April 30, 2017. And if he needs to pay tax, then Diesel must meet the deadline before July 15, 2017.
These are the rules. And now about the exceptions.
If the car was owned more than 3 years (36 months), then there is no need not only to pay 13 percent tax, but also to fill out and, then, submit the declaration to the tax office.
How to calculate the length of time you own a property
Tenure is calculated differently in different cases. Let's consider the main cases when you become an owner:
- Purchase. In this case, the period of ownership will be considered from the date of purchase of this vehicle.
- Inheritance. Then the day of death of the testator will be considered the beginning of ownership.
- Present. If you receive a car as a gift, then it will become property from the date of signing the donation agreement.
How not to pay tax when owning a car less than 36 months? If you have owned a vehicle for less than 3 years, then when selling it, filing a 3-NDFL declaration before April 30 and paying 13% of the sale amount is required. How can you save money? Is it better not to pay anything at all?
For what I bought, for what I sold
This is, of course, the most ideal option. But, nevertheless, decent savings are obtained when paying tax on the difference in car prices at the time of sale and purchase, even if they do not coincide.
This method is also called the "selling price minus the purchase price". This can be done if you have kept the original documents confirming the amount of expenses for the purchase of this vehicle.
In this case, the tax can be paid not on the entire sale price, but on the difference between the level of the transaction value. Then the personal income tax is calculated as follows: (the sale price of the car - the price of its original purchase) * 13%.
Example... If Bardachkov K.R. bought a car for 400 thousand rubles, and sold it for 500 thousand rubles, the tax will be calculated not from 500 thousand rubles, but according to the formula: (500,000-400,000) * 13% and will not be 65,000, but 13,000 rubles.
But you need to keep in mind that expenses and income should relate to the same car.It is in this case that it is possible to use the difference between these figures.
If the car was sold cheaper than purchased, the tax is not paid. But the 3-NDFL declaration must be filled out if the car has been owned for less than 3 years.
If the original sales contract has not been preserved, it is necessary to take a copy of the certificate of account from the traffic police. This will be required to confirm the costs incurred.
This savings option is only suitable for vehicles that have been purchased and not inherited or donated.
You can download samples filling out the 3-NDFL declaration. The examples of different life situations that may arise when selling a car are presented. And here there are samples of completed 3NDFL forms. You just have to substitute your numbers and passport data.
Using a standard deduction
The property tax deduction for movable property is defined by law as 250 tr. It is from this amount that the tax is not paid. This can be helpful in obtaining a car as a gift or inheritance. And also in the event that there were no documents that confirm the initial purchase costs.
If the amount of the car sale does not exceed 250 thousand rubles, the 13% tax is not paid. For example, if you sold a donated car for 240,000, then using the standard deduction, you will not have to make any tax deductions.
It is important that the property tax deduction equal to RUB 250 applies to all property sold for the year.
Example... You sell 3 donated cars for 300 tr. A privilege of 250,000 rubles. can be used only once. Therefore, the tax will be calculated as follows: (300,000 * 3 -250,000) * 13% \u003d 84,500 rubles.
Therefore advice: sell donated cars no more than one a year! 😀
Using offsetting
If in the past year you not only sold a car, but also acquired property for which you can return the tax (apartment, house), you can offset one tax with another.
Having bought an apartment for 1 million rubles. and selling the car for 1 million rubles. You must pay 13% of the sale of the car and you can get the same amount back on your home purchase. In this case, the amounts are equal and nothing is required to pay.
Example... Citizen L.A. Kalinov sold the car for 1 million rubles, which he inherited, and it was owned for less than 3 years. And in return he became the owner of the home, having bought a room for 1.2 million rubles.
For the sale of a car, he must pay tax on the sale amount (minus a deduction of 250 thousand rubles): (1,000,000 - 250,000) * 13% \u003d 97,500 rubles.
When buying an apartment, Kalinov can take advantage of a property deduction. This means getting 13% of the purchase amount: 1.2 million rubles * 13% \u003d 156,000 rubles.
As a result, it turns out that the amount of tax to be paid is compensated by the amount to be paid: 156,000 - 97,500 \u003d 58,500 rubles. And Kalinov will be able to get his hands on this remainder by submitting a 3-NDFL declaration.
If you need individual Skype consultation or assistance in filling out the 3-NDFL declaration (with a benefit for you, and not for the tax office), then leave. We work for people!
Illegal ways of saving
When selling a car, owners often make gross mistakes in order not to pay tax:
1. Do not fill out or submit a declaration indicating the amount from the sale of the car. The hope that the IFTS will not become aware of the profit is groundless. If you hide the fact of the sale of the car, then the owner will pay the 13% tax later: 13% + penalties for delayed tax payments + a penalty for not submitting 3-NDFL on time.
2. Decrease the selling price below 250 thousand rubles. They do this in order to take advantage of the standard property deduction and not pay tax. These actions are illegal and lead to problems if the transaction is canceled or information about this violation gets to law enforcement agencies.
In addition, do not forget that the selling price is 250 thousand rubles. it is beneficial to you, but the buyer may eventually get out of hand if he later decides to sell this car himself: after all, then it turns out that his income will be much greater than the official expense. And this will result in b about the greater amount of tax.
In the article "" you will find some more examples of how to sell your car more profitably and pay less taxes. I recommend watching a useful video, where all this is very clearly disassembled:
What's next?
If you bought a car, then you cannot expect that 13% of the total amount will be returned upon purchase. But such rules are in force today.
It is possible that in the near future, a tax deduction when buying a car will become as commonplace as other tax breaks. Here, let our legislators decide: after all, a situation where the state returns 13 percent of a car purchase can be beneficial to both parties.
Imagine that the new law is amended and it became possible to return 13 percent of the purchase of a car. In this case, buyers are unlikely to want to underestimate the amounts paid in the contracts. This means that along with the return of income tax upon purchase, personal income tax will also increase when selling a car. Here is such a mutual benefit. 🙂
If you have any questions, then ask them in the comments. We answer quickly and with pleasure! 🙂
Tax legislation is constantly changing regarding the rules and regulations for the payment of taxes by citizens of the Russian Federation. In this regard, people have a question whether it is possible to get a tax deduction for buying a car. After all, if you manage to return as much as 13% from the purchase of a car, it will be logical and correct. Cars are expensive goods, but most of our compatriots buy them on credit. If it were possible to carry out a tax refund on the purchase of a car, the amount saved would be impressive and would help in paying the installments on the loan.
Who can expect a 13% refund
The legislation of the Russian Federation provides for a list of preferential conditions for certain categories of citizens. One of these options for benefits is the opportunity to receive back the previously paid income tax, its share is 13%. Citizens who have paid personal income tax for a period of one calendar year and incurred certain expenses can count on a refund.
The return of this value of 13% will be made to citizens who spent their own funds in the following areas during the calendar year:
- acquisition or construction of real estate;
- education costs;
- implementation of medical and diagnostic measures;
- bearing the costs of charity.
What features and nuances the tax deduction has when buying a car will be studied in detail and in detail within the framework of this material. It should be noted that these areas of spending are vital, and therefore they provide for certain tax benefits.
As for the vehicle, it has nothing to do with essential items. Therefore, it will not be possible to return 13%.
Savings options
Rules and reporting
It is necessary to draw up a report on the income received by April 30 of the year following the date of receipt of payment for the car. And the direct payment of income tax is made no later than July 15, that is, 2.5 months after the report.
Example
Citizen Petrov sold his bus in 2016, and currently he has an obligation to file and submit a tax return in the form of 3-NDFL. This must be done by April 30, 2017. If he needs to pay tax, then he must do it before the date of July 15th.
These are the legal rules regarding transactions with the purchase and sale of a car. But as you know, every rule has exceptions. And they will be discussed in this material. If the car was owned for more than 36 months, then there is no need to give the state the amount of 13%. Moreover, you do not have to fill out a declaration and submit this document to the tax and collection office.
Features of calculating the term of ownership of property
In different cases, the time during which a citizen owns property is considered differently. Let us examine the key situations in which a person acquires the status of an owner:
- Purchase. In this case, the ownership period starts from the moment of purchase of this machine.
- Inheritance. In this situation, the start of the countdown is the day of death of the person who left the car.
- Present. Upon receipt of a car as a gift, it will become property from the moment the donation contract is signed.
So, we have answered the question whether there is a tax deduction when buying a car. It should be noted that if the time of car ownership is less than 3 years, the tax is paid. But there are ways to save money. Or is it better to pay nothing at all?
If the buy and sell prices are equal
Of course, this scenario is optimal. However, it is possible to achieve optimal savings in the course of tax payment on the difference between purchase and sale prices. You can do this if you have original documents on hand, which confirm the cost of purchasing transport. That is, it turns out that in this situation it is possible to pay the tax not from the entire value of the sale, but from the difference between the levels of the value of transactions. That is, the calculation of personal income tax will be as follows: the selling price minus the purchase price, and this value is multiplied by 13%.
Case study
Citizen Ivanov bought a car for 400 thousand rubles, and sold it for 500 thousand rubles, then the tax calculation will not come from 500 thousand (selling price), but from 100 thousand (profit).
It is important to understand that the expenditure and revenue side should be related to the same car, it is in this situation that it is possible to use the difference between the given values. If the car was sold at a lower price than the purchase price, the citizen is exempt from paying tax. But nevertheless, filling out the declaration is an important step. If the original sales contract has not been preserved on hand, then you need to contact the traffic police for a special copy of the certificate of account. This is in order to provide confirmation of the costs that were incurred. Such a saving option takes place, however, it is suitable only for those cars that were bought for money, and not inherited or as a gift.
Applying the classic deduction
In the current legislation, there is a precise definition of the tax deduction for movable property. Its size is 250,000 rubles. It is from this amount that the tax is not paid. Such a deduction can be a good help, especially if the car was inherited or a gift, and also if you do not have documents on hand to prove the fact of the initial purchase costs.
If the amount of the sale of the car is no more than 250,000 rubles, then the tax amounting to 13% of the value of the transaction is not paid. That is, when selling a car for 230,000 rubles, you need to apply the standard deduction scheme, and you will not have to make any deductions. It should be noted that such a deduction, the value of which is 250 tr., Is common for all property sold during the year.
Case study
You are selling three donated cars worth 300 thousand each. Discount from 250 tr. can only act once. Therefore, the formula for calculating the standard deduction will look like this:
tax \u003d (300,000 * 3 - 250,000) * 13% \u003d 84,500 rubles.
To save money, it turns out, you need to sell the cars that were donated, no more than 1 piece per year.
Application of offset
So how do you get your car tax deduction back? As already noted, this cannot be done for obvious reasons. But there is another way to get around these norms. This option assumes compensation of the paid purchase tax by means of a deduction upon the sale of this type of property. That is, by purchasing an apartment for 1,000,000 rubles and selling a car for the same amount, a citizen undertakes to contribute 13% of the sale of the car to the state budget. An identical amount will be returned from the purchase of a home.
Practical example
Citizen Krylov sold his car for 1 000 000 rubles, while it was inherited and owned for no more than 3 years. And subsequently, housing appeared in his property– a room purchased for 1.2 million rubles. That is, it turns out that for the sale of a car, a tax is paid on the sales amount (minus a preferential deduction of 250 tons). And during the acquisition of an apartment, a citizen can count on a property deduction of 13% of the purchase amount. Since the amounts of transactions are different, Krylov can expect to receive the difference between them, that is, the remainder.
This method is relevant for a larger number of situations due to its versatility, so you can count on a similar option.
And another way to save
This option is illegal, therefore it is strongly discouraged to apply it in practice. In order to secure a tax refund when buying a car, many former owners make gross mistakes in order to be exempt from tax. So, they neglect to pay declarations, deliberately and artificially reduce the sale price to less than 250,000 rubles. Yes, these methods can significantly save money, but they are fraught with serious consequences in the form of liability in accordance with legislative norms.
Possible tax refund scheme
Since the deduction takes place exclusively in the course of transactions related to the sale of cars, those who want to save money can take advantage of this opportunity. There is a certain set of rules and regulations applicable to the conduct of various transactions and operations. An approximate scheme of actions will look like this:
- If the car is purchased with a further sale plan, you need to take care of getting a deduction on sale at the very first stages of the transaction.
- Even if the car is taken on credit, tax refund is not possible. The correct solution would be to save documents confirming the size of the value of the object of contractual relations.
- Over the next three years of owning a car, it is recommended to scrupulously fold all receipts and papers that contribute to fixing all the costs of operating and maintaining the car. They will become relevant if the owner decides to sell the vehicle within 3 years at a cost that is less than the purchase price. This is usually the case. After all, the car loses its appearance, and also undergoes a deterioration in technical parameters.
- The car must of course be registered. Otherwise, you will not be able to sell it, and you will not be able to subsequently deal with filing the income tax return. In addition, there should be no arrears in the payment of fees by the time of sale.
- If the new owner of the car was purchased at a lower cost than the first owner, then the previous owner has the opportunity to be exempt from paying this tax deduction.
Of course, if there are no documents proving the fact of buying a car, then certain difficulties may arise when registering a refund for income tax, but this can be done. If the car is owned for a period not exceeding 3 years, then the deduction is due in any case. This factor will not be affected by the cost of the car or other contractual conditions. It is worth noting that a person can expect to receive such a deduction once in a lifetime.
What are the forecasts for deductions
In the near future, according to forecasts and projects, one should not expect to receive such a deduction in question. After all, all goods for the purchase of which benefits are provided are vitally important things. These are real estate for living, buying medicines, training and other important elements. Until the car is calculated as a necessity, not a luxury, there will be no changes in this area. Accordingly, sellers will be required to pay this type of tax in its full amount.
A citizen who has sold his car can receive a tax deduction according to our legislation. It will not work to receive a state benefit when buying a vehicle of any value and brand, since this is not stipulated in the Tax Code. In our article, we will describe this topic in detail and explain to our readers exactly how a deduction can be obtained.
Tax deduction when selling a car
When selling a car, it is provided for the provision of benefits from the state in the form of a tax deduction. At the same time, it is important that the following conditions are met simultaneously:
- a citizen must be a taxpayer in Russia;
- he must documentally prove the right to own the car;
- the sale transaction must be executed according to the rules, and for the amount received, documents must be presented in the form of a receipt or payment order, for example.
In addition, the seller's vehicle ownership period matters. The date of commencement of ownership is the one that is in the purchase and sale agreement. Some citizens confuse it with the date of registration of the vehicle in the traffic police.
Owned car for more than three years
Long term ownership is beneficial for vehicle sellers. If the car has been owned for more than three years, upon sale, the citizen is exempt from:
- tax in general;
- the need to submit a declaration in the form of 3-NDFL.
This is the preference.
Owned car for less than three years
If the car has not been owned for so long, then there are three options to benefit from the transaction. According to the Tax Code of the Russian Federation: a citizen who has owned property for less than three years, upon selling it, receives income from which he is obliged to pay tax on personal income.
The following options are valid:
- If the car was sold for a small amount, which is less than or equal to 250 thousand rubles, then the citizen is exempt from paying tax and submitting documents to the tax authority for its purchase. However, you will have to submit a declaration of the appropriate form on time and provide documents confirming the sale.
- If the vehicle was sold for an amount exceeding 250 thousand, but the documents from the transaction for its purchase have not been preserved, then you will need to submit a declaration along with the transaction documents on time. The tax base will be the difference between the sale amount and 250 thousand rubles.
- Another option is the sale of an old car with a simultaneous exchange for a new one, provided that all documents for both transactions (purchase and sale) are available. In this case, the declaration and transaction documents are provided to the inspector on time, and the tax base is calculated in one of the most profitable ways. The first is the difference between the selling amount and the 250 thousand amount, the second is the difference between the selling price and the buying price.
The latter way of combining buying and selling is very common today. Some options can cut income tax quite dramatically.
Calculation example
According to the options proposed above, we will consider several examples of calculating personal income tax.
- Citizen Stepchenko bought a car in 2014 for 500,000 rubles, and at the beginning of 2016 sold it for 550,000. The period between purchase and sale is less than three years. Let's calculate the amount from which the tax will be calculated: 550,000 - 500,000 \u003d 50,000 rubles. You will have to pay 13% of this amount: 50,000 * 0.13 \u003d 6,500 rubles.
- Citizen Zimin bought a car in 2008, and sold it in 2013. Since she owned it for over three years, she is exempt from filing a declaration and paying taxes.
- Citizen Zolotarev bought a car in 2014 for 1,100,000 rubles, but in 2015 he decided to sell it for 1 million. The tenure is less than three years, but the base is zero as the purchase amount is higher than the sale amount. This is tax exempt, but not exempt from filing the declaration on time.
- In 2013, citizen Malekyan inherited a car from her father, in 2015 she sold it for 700,000 rubles. When filing the declaration, she used the standard deduction: 700,000 - 250,000 \u003d 450,000 rubles. In this case, you will have to pay 13% of this amount: 450,000 * 0.13 \u003d 58,500 rubles.
How do I get a tax deduction?
Taxpayers are rarely aware of the responsibility to preserve contracts and receipts for property transactions. Hence the reason for paying large amounts of taxes. We warn in advance those who make such transactions: do not get rid of documents that are years old, keep them in a special folder.
Required documents
It is imperative that you save in order to present it to the tax office later:
- certificates, invoices or vehicle sales contracts (these are the documents that must be kept in the original);
- passport for the sold car (PTS);
- a receipt for the payment made when buying a car;
- a contract for the purchase of a car (a copy is submitted to the inspection, but the original may also be required).
Procedure
The procedure is as follows:
- calculation is made and the method of payment for personal income tax is selected;
- the declaration of the 3-NDFL form is filled in;
- copies of documents are prepared, the originals must be taken separately;
- within the time limit established by law, the taxpayer submits the declaration and documents to the inspector.
To reduce the amount of tax, they resort to illegal sales schemes. This is the same case when there is one amount in the papers, but in fact the payment of the remainder is made in hand. Such methods are used by citizens, but at the risk for themselves. If a citizen really wants to avoid taxes, but not break the law, he will have to wait until three years from the date of the purchase transaction.
How often can you use it?
In addition to a very extensive list of options for reducing the tax base and other preferences from the tax inspectorate, citizens are encouraged to apply them an unlimited number of times. Thus, you can use these benefits without restrictions, if they are not changed by law.
Tax preferences have given tax residents in Russia the opportunity to keep some or all of their income at once. This is good practice. For those who have lost their documents, we advise you to contact the traffic police with a request for a certificate. This will save the situation.
It is not uncommon to hear today: “Bought an apartment? Did you return the tax? " Yes, it is convenient and profitable. Who will refuse this? At first, we got used to the property tax deduction for housing for a long time, everything seemed like fairy tales, but today every realtor, and even a simple buyer and seller, knows what and the intricacies of this issue are.
Quite often today you can hear the question, is there a tax deduction for the purchase of a car (car)?
Property tax deduction for buying a car - does it exist or not?
With the purchase of housing, everything is clear: when buying real estate worth up to 2 million rubles, the taxpayer can return up to 260 thousand rubles (13% of the cost of the purchased apartment or house) see.
But the return of personal income tax when buying a car does not exist. A motor vehicle is a property and therefore the tax deduction should be looked for in the property deduction list. However, this deduction is provided to the taxpayer only:
- For the purchase of an apartment, residential building (any residential property or a share in them).
- For the construction of a residential property, as well as the acquisition of land for this construction.
- To pay off% on loans for the purchase or construction of housing and land for this construction.
According to the Tax Code of the Russian Federation, the property tax deduction applies only to real estate - an apartment, a cottage, the construction of a residential building, the purchase of land for the development of individual housing. There is NO tax deduction when buying a car... That is, it is impossible to reduce the taxable base for personal income tax (income received by the taxpayer during the year) by the amount spent on the purchase of a car.
Car sale
But what is in the legislation regarding the tax deduction in the case of the sale of a car:
- If the car has been owned for more than 3 years (36 months from the date of the contract), then the citizen is exempt from paying tax.
- When selling a car that has been owned for less than 3 years, a citizen must submit a declaration in the form of 3-NDFL (otherwise a fine of 1000 rubles) indicating the cost of selling the car. If the car is sold for more than it was spent on the purchase (documented), the seller must pay 13% personal income tax from the difference (see how to calculate and pay less than 3 years of ownership).
- The sale of a car worth up to 250,000 rubles is not taxable... That is, even if a citizen made a profit from the sale of a car, but the sale price is less than 250 thousand rubles, this amount is a tax deduction and is not subject to taxation. But, a 3-personal income tax declaration should be submitted in any case if the car has been owned for less than 3 years.
Example: if a citizen sold a car for 300 thousand rubles, but there are no documents confirming its purchase, he can use such a deduction of 250 thousand rubles and pay 13% from 50 thousand rubles (300 - 250 \u003d 50), if there are supporting documents, to for example, a purchase for 270 thousand, then 13% are calculated from 30 thousand rubles. (300-270 \u003d 30).
Why is there no tax deduction when buying a car?
Or the legislator underestimates the role of the car in modern life, its influence on the development of the transport system, or considers cars a luxury, not a necessity. Yes, and the transfer of ownership is as difficult as with housing: the same registration, the same state fees, queues, etc.
By the way, the costs are comparable. Deals on the equivalent exchange of a car for an apartment or vice versa are not uncommon. But the fact remains and we will firmly emphasize it once again: the legislation does not provide for a property tax deduction for the purchase of a car.