How to draw up a contract for donating a car to a relative
Re-registration of a car by deed of gift
A gift agreement is a gratuitous transaction between two persons in which one person gives another person movable or immovable property..
Today we will talk about a deed of gift for a car. How does the process of re-registration of a car under a gift agreement take place, how to make a deed of gift without deregistering the car, as well as preserving the license plates?
Do I need to have the gift deed certified by a notary? You will find the answers to these questions after reading the entire article.
In what cases is it recommended to issue a deed of gift?
There are many situations when it is better to give a car. Often, a deed of gift between relatives is drawn up when:
- both parties to the agreement have no desire to draw up a will;
- you need to transfer the car to a relative according to a simplified scheme;
- the donor wants to deprive other people (for example, the wife/husband of the donee) of the right to own the subject of the contract.
The donor can only be the owner of the car. At the same time, the donor is not obliged to explain to anyone the motives of his demonstrative generosity (of course, if this concerns a deed of gift issued to a relative).
Very often, a deed of gift is drawn up for a practical purpose . If one of the spouses has a debt on bank loans, then, having a deed of gift in the name of the spouse, bailiffs do not have the right to take the car to pay off the debt.
How to issue a deed of gift for a car?
How to make a deed of gift for a car? The transaction can be concluded orally, in writing, or before a notary. To avoid any difficulties in the future for the person to whom the car will be gifted, it is best to formalize the agreement in writing.
The deed of gift for a car, both between relatives and between strangers, must contain the following information:
- date and place of drawing up the vehicle donation agreement;
- full last name, first name and patronymic of the donor, his registration address, passport data (series, number, by whom and when it was issued);
- the same data, only about the donee;
- information about the car - model, make, color of the car, year of manufacture, VIN code, engine size;
- information about the rights and obligations of both parties to the contract;
- signatures of the donor and recipient.
Donating a car without deregistration and keeping the license plates
After a car donation agreement has been drawn up, the recipient must contact the traffic police to re-register the car in his name.
To do this, he must provide the specialist with the following package of documents:
- original passport;
- vehicle passport;
- gift agreement;
- insurance policy. If there is none, then the person must undergo a technical inspection and obtain an insurance policy in his own name;
- receipt of payment of state duty.
After registering the vehicle in the name of the new owner, he is issued a passport for the car, as well as new license plates.
The new owner of the donated vehicle is required to re-register the car within 10 calendar days . Otherwise, the donor may refuse the deed of gift and return the car back.
It is prohibited to issue a deed of gift if the car is under collateral.
Features of concluding a car donation agreement, requirements
If you decide to give someone a car, then you should draw up a gift deed. But many people at this stage have a question: “Is the gifted car taxable?” If the agreement is drawn up between relatives, then neither the donor nor the donee pays taxes .
There are also disadvantages to the contract of donation of movable property. Thus, when drawing up a gift agreement, you cannot officially indicate the value of the vehicle. In some cases this may be a problem.
Another disadvantage, or advantage, depending on who you are, is the fact that upon divorce, for example, the donee’s property received as a gift will not be divided between the spouses. That is, in this case, the wife (husband) cannot claim the car.
For the gift deed to come into force, it is necessary:
- that both parties to the agreement are legally capable persons;
- that the contract contains no restrictions regarding the operation of the vehicle;
- that the agreement be concluded by mutual consent of the parties. If the donee does not want to receive a car as a gift, then he has the right to refuse such a gift until the subject of the agreement is transferred to him. A person must refuse a gift in writing. If the agreement was certified by a notary, then the recipient must contact him and write a statement of refusal.
According to the legislation of the Russian Federation, the donor himself can cancel the gift agreement if he survives the person to whom the vehicle was gifted.
The donor can cancel the agreement on donation of movable property, but only if the transaction was concluded for the future.
He can also cancel the agreement if his current financial situation has deteriorated significantly.
Is it necessary to draw up a contract with a notary?
Many people are mistaken when they claim that a gift agreement must be formalized by a notary.
In fact, you don't need to have it notarized.
Notarization can only be done with the voluntary consent of the person.
It is better to draw up a gift agreement in writing and subsequently register it with Rosreestr (the federal executive body of a particular region).
This is enough for the contract to be considered concluded and valid.
How much does a car deed cost?
The cost of such a transaction depends on who is giving the car and in what form the contract was concluded.
Agreement between close family members
If the transaction is made between relatives, then the donee is exempt from paying taxes . At the same time, he must present to the tax service confirmation that he is a close relative of the donor - a birth or marriage certificate.
Close relatives of the donor are: husband (wife), parents, children, grandparents, grandchildren, brother/sister, adoptive parents.
Donation agreement for a third party
If the deed of gift is not issued to a relative, then the donee will have to pay 13% of the estimated value of the movable property (this figure is also relevant in 2019).
The cost of an appraiser’s services can be 2–3 thousand rubles, depending on the region.
Nephews, uncles, aunts, guardians, stepchildren and other people are not considered relatives of the donor.
Therefore, they are required to pay tax on the donated car.
If both parties to the agreement use the services of a notary, then the cost of the deed of gift will be higher.
For services, a notary usually charges 0.5% of the value of the property, however, this amount should not be lower than 300 and not higher than 20 thousand rubles.
In what cases can a deed of gift not be issued?
It is prohibited to execute a gift transaction in the following cases:
- if the donor or recipient is an incapacitated person;
- if the giver is a minor citizen;
- if a citizen tries to issue a deed of gift to an official, employee of state or municipal authorities;
- if the parties to the agreement are commercial organizations.
The best way to transfer a vehicle to a relative is to issue a deed of gift for it. At the same time, the donor must understand that after the donation procedure he completely loses ownership of the car.
The process of re-registration under a gift deed has now been simplified: the owner of the car does not need to first deregister it. The new owner can re-register the car in his name.
Car donation agreement (deed of gift)
Good afternoon, dear reader.
Currently, there are several ways to transfer ownership of a car. Most often, car owners sell a vehicle using a car purchase and sale agreement.
However, this option is not always the most profitable, because... When selling a car, its owner is forced to pay the appropriate tax.
In practice, there are situations in which you can completely avoid paying tax if you use a gift agreement or deed of gift. We are talking about the transaction of donating a vehicle , which will be discussed within the article.
Paying taxes when donating a car in 2019
To begin with, I would like to note that only a deed of gift for a car concluded between close relatives . This follows from Part 2 of the Tax Code of the Russian Federation (Article 217, paragraph 18):
Income received as a gift is exempt from taxation if the donor and recipient are family members and (or) close relatives in accordance with the Family Code of the Russian Federation (spouses, parents and children, including adoptive parents and adopted children, grandparents and grandchildren, full and half (having a common father or mother) brothers and sisters);
Thus, donating a car is not taxable if the parties to the transaction are:
- husband wife;
- father (mother) - son (daughter);
- adoptive parent - adopted person;
- grandfather (grandmother) - granddaughter (grandson);
- brother (sister) - sister (brother) (having at least one common parent).
Please note that in all other cases, when donating a car, the recipient is required to pay a tax of 13 percent of the value of the car.
For example, when donating a car worth 500,000 rubles, the tax amount will be 65,000 rubles.
Note. When receiving a car as a gift, tax deductions are not provided (Part 2 of Article 220 of the Tax Code of the Russian Federation), i.e. Tax will have to be paid on the entire cost of the donated car.
Gifting a car between distant relatives
In practice, there are situations when you need to transfer a car between people who are actually relatives, but are not included in the list of close relatives.
For example, a few common situations:
- mother-in-law (father-in-law) - daughter-in-law;
- mother-in-law (father-in-law) - son-in-law;
- ex-wife - ex-husband;
- common-law wife - common-law husband.
There are several options for completing a transaction with minimal costs:
- Use of a purchase and sale agreement.
- Use of several gift agreements through intermediate close relatives.
For example, let’s say you need to give a car from your mother-in-law to your son-in-law. In this case, the mother-in-law first gives the car to her daughter (a close relative). After this, the daughter gives the car to her husband (also a close relative).
In this case you will have to:
- Draw up 2 gift agreements.
- Contact the traffic police once to register your car.
Tax return when donating a car
The recipient must file a tax return only if he received the car as a gift from someone other than a close relative . This follows from Article 228 of the Tax Code of the Russian Federation:
1. Tax calculation and payment in accordance with this article is carried out by the following categories of taxpayers:
.
7) individuals receiving from individuals who are not individual entrepreneurs income in cash and in kind by way of gift, with the exception of cases provided for in paragraph 18.1 of Article 217 of this Code, when such income is not subject to taxation ;
So, when giving a car as a gift to a close relative, you do not need to file .
Obviously, the operation of donating a car makes sense only when it is carried out between close relatives. In all other cases, I recommend using the purchase and sale scheme.
Let me remind you that when buying or selling, the tax will be paid by the seller, but its amount may be significantly less than when making a gift, because You can take advantage of the tax deduction. Well, if you own a car for more than 3 years, no tax is paid at all.
Form of car donation agreement between relatives
Let's proceed directly to the execution of the car donation agreement . Deed of gift form in the form of images (click to enlarge):
You can also download the car donation agreement form as a pdf file here.
Note. The deed of gift does not need to include information that the parties to the transaction are close relatives. Traffic police officers are not interested in this issue.
Sample car donation agreement
In principle, it is quite simple to issue a deed of gift for a car, even without special knowledge. However, I recommend using a sample car donation agreement so as not to miss or confuse anything:
Sample agreement for donating a car to a relative in pdf format:
How to issue a deed of gift for a car in 2020?
Let's consider point by point how to issue a deed of gift for a car:
1. At the beginning of the gift agreement, you must indicate the city of the transaction, its date, as well as the full name of the donor and the full name of the donee (detailed details of the parties will be filled in a little later).
2. In paragraph 1.1. You must provide as complete information as possible about the vehicle.
3. In paragraph 2.1. The deed of gift should include the address of the place where the vehicle is transferred to the donee.
4. Clause 2.2. required to be filled with additional things and items that are donated along with the car.
For example, these could be documents for a car and a set of winter tires.
5. In Section 4 of the agreement, it is necessary to enter complete information about the parties to the transaction (their passport details).
6. After the car donation agreement has been drawn up in triplicate, each participant in the transaction must sign in the appropriate field.
7. After handing over the keys to the car, the recipient must also sign in the “received the car” column.
Is it necessary to indicate the cost of the car in the contract?
There is no need to indicate the cost of the car in the contract; this information is optional .
However, in practice the following cases sometimes occur. The traffic police officer, who did not find anything to complain about, tells the driver that the contract is invalid, because it does not indicate the cost of the car. In this case, there are 2 options:
- Immediately file a complaint with a higher-ranking official at the traffic police.
- Just add the cost of the car to clause 1.1 of the contract.
The case is extremely rare, but you also need to be prepared for it.
Do I need to have the gift deed certified by a notary?
Notarization of the deed of gift is not required and it has no practical meaning.
In principle, drawing up a gift agreement yourself should not cause any difficulties. However, the transfer of ownership of the car is not complete.
Enter the details of the new owner in the vehicle passport (PTS), and also put the signature of the previous owner in the appropriate column. And only after that you can go to register the car at the traffic police. In this case, the presence of the donor in the unit is not required.
How to arrange a gift of a car to a close relative?
The owner can transfer the rights to his property to other persons in various ways. One of them is a gift agreement. A transaction of this nature is quite profitable and is possible even between persons who are closely related.
What is a gift agreement?
A gift agreement is a transaction, the essence of which is to transfer the right to property from the owner to another person. A procedure of this nature is regulated by the rules of Chapter 32 of the Civil Code of the Russian Federation. The parties to the transaction are the donor and the recipient.
Distinctive features of this procedure are:
- Gratuitous. The fact of transfer of property rights does not imply the imposition of any property obligations on the recipient. Simply put, you don’t need to pay money for what you receive, or give anything in return.
- Implementation of the transaction during the life of the donor. If the terms of the agreement provide for the transfer of rights after the death of the owner, then the rules for the execution of a will are applicable.
- Any person can act as a recipient. That is, the parties to the transaction may not have kinship or family ties with each other.
Donating property is quite common because it has a number of advantages:
- unlike a will, this transaction cannot be annulled in court;
- the donated property is not divided upon dissolution of the marriage and family union;
- the procedure for registering a donation is not complicated;
- the donated property cannot be confiscated for the debts of the former owner.
Attention! If the contract contains a promise of a gift in the future, it must be in writing. Otherwise, the transaction will be invalid.
Who is considered the closest relatives in the Russian Federation?
The list of persons classified as close relatives is determined by Article 14 of the Family Code of the Russian Federation.
- parents and children;
- grandparents and grandchildren;
- full and half-blooded, having a common father or mother, brothers and sisters.
Important! The fact of blood connection does not classify persons as close relatives. For example, great-grandparents, great-grandchildren, aunts and uncles, nephews and nieces, cousins or second cousins will not be such.
How to issue a deed of gift for a car?
The procedure for registering a gift transaction consists of several successive stages. First of all, you need to prepare documents that justify the legality of the contract. After this, a draft agreement is drawn up. After its signing, the rights to the property are transferred to the donee.
Documents required for registration
In order to complete the transaction, you will need to prepare a number of documents.
- participants' passports;
- a certificate or act indicating the cost of the vehicle. In the case of close relatives, such a document is not required;
- insurance policy;
- vehicle passport;
- fee payment receipt;
- vehicle registration certificate;
- an extract or certificate confirming that there are no restrictions on the car, for example, arrest.
Documents can be submitted as originals or certified copies.
The procedure for registering a deed of gift for a relative’s car
First you need to draw up a draft agreement. It is best to get it in writing, in two copies, one for each party. The participation of a notary in the transaction is not a prerequisite. This issue is resolved by agreement of the parties. The participation of a notary will be mandatory if the subject of the transaction is common property, for example, acquired during marriage.
After paying the fee and signing the contract, the car is transferred to the new owner, and the corresponding application is sent to the Federal Tax Service.
Important! When sending an application to the tax office, you need to provide a document confirming the relationship of the participants, for example, a certificate from the registry office.
Finally, you will need to deregister the car with the traffic police and re-deliver it at the place of residence of the new owner, or at the address determined by the latter.
Sample deed of gift for a car between relatives
The donation agreement must indicate the following:
- Date and place of the transaction.
- Information about the parties to the agreement - last name, first name, patronymic, passport details.
- Item of donation. This section provides detailed information about the car - make, model, color, year of manufacture.
- Place of transfer of the vehicle.
- A list of additional items that are sent with the car, for example, a jack, a pump or a set of winter tires.
- The moment of transfer of the vehicle. It can be tied to the date of signing the contract or another day.
- Details and signatures.
A sample agreement can be downloaded here https://yadi.sk/i/4k79Hg7Cxjl90g.
Donation without deregistration and with preservation of numbers
As part of the donation transaction, you can not remove the car from registration and keep the license plates. To do this, after signing the agreement, you must contact the traffic police with an application.
It should indicate the following:
- Name and address of the traffic police authority.
- Information about the initiator - last name, first name, patronymic, passport details.
- Vehicle data – make, model, year of manufacture, color, license plate.
- The petition itself of the interested person, indicating the requirement to maintain the previous number.
- A note from the traffic police officer that the application has been accepted for consideration.
- Date and signature of the applicant.
The application form is issued to the initiator at the traffic police.
The interested person will need to attach the following documents to his application:
- Your passport.
- Donation agreement.
- Passport for the car.
- Insurance policy. If it is missing, then you will need to undergo a technical inspection, obtain a diagnostic card and apply for compulsory motor liability insurance.
- Receipt for payment of state duty.
Based on the specified documents, appropriate changes will be made to the traffic police database and the car number will be retained by the new owner.
How much does a car deed cost?
The implementation of the donation procedure will entail certain costs.
- registration of a compulsory motor liability insurance policy, in the absence of one;
- payment of the fee for removing and registering the car with the traffic police;
- notary fee.
In case of notarization of the contract, the interested party will have to pay 0.3% of the cost of the car. If you need to draw up a draft agreement, you will need to pay another 3,000 rubles.
The cost of the insurance policy will depend on the region of registration, characteristics of the vehicle, driving experience and age of the owner. The insurance company will calculate the specific amount. The average cost of a policy can range from 5,000 to 20,000 rubles.
Operations related to entering data into the traffic police database will also entail certain costs. The fee for deregistration of a car will be 700 rubles, for making changes while maintaining the number 850. If the question concerns the registration of a vehicle with replacement of numbers and the issuance of a new PTS, then the service will cost 2,850 rubles.
Attention! Additional costs may be associated with the preparation of other documents, for example, a vehicle passport if it was lost.
In what cases can a deed of gift not be issued?
The legislative grounds prohibiting donation are enshrined in Article 575 of the Civil Code of the Russian Federation. In the case of close relatives, a transaction of this nature will be invalid if the donor is a minor, that is, a person under the age of fourteen and declared incompetent.
The exception is cases when the value of the subject of the transaction does not exceed 3,000 rubles.
Do I need to pay tax on a donated car?
Donation, like any property transaction, is subject to tax, the amount of which is 13% of the cost of the car.
But an exception is made for close relatives. If such persons are parties to the transaction, they are exempt from taxes. This rule is specified in paragraph 18.1 of Article 217 of the Tax Code of the Russian Federation.
Important! This article includes not only blood relatives, but also adoptive parents and adopted children in the preferential category.
Conclusion
Gifting is the simplest way to transfer ownership to another owner. It will be enough to prepare the necessary documents and conclude an agreement. The participation of a notary in the transaction is not a prerequisite, which reduces the cost of completing the procedure. If the parties to the transaction are closely related, then they are exempt from paying tax.
Gift deed for a car to a close relative - 2019 form
In our last article, the author of the site and practicing lawyer Oleg Ustinov explained what a preliminary gift agreement is and why it is needed in this method of alienating real estate in favor of a relative. Today, we will consider such pressing issues as: when a deed of gift for a car for a close relative may be useful, a 2019 form, how to draw it up and what to take into account when completing a transaction in order not only to save money and time, but also to avoid possible problems in the future.
What the parties to the transaction need to know
Please note that the donation of a vehicle to a close relative in Russia, according to current legislation, can only be carried out on the basis of a written agreement. At the same time, when drawing up a deed of gift for a car, it is not necessary to have it certified by a notary, although most lawyers recommend doing this in order to avoid conflicts, claims and litigation in the future, which is not so rare.
How to issue a deed of gift for a car
Regular readers of our column on deeds of gift in the Russian Federation know that one of the main features characteristic of this type of transaction is gratuitousness. Simply put, the donor agrees to give away part of his property, increasing the property of another person, without asking for anything in return. The role of the donee can be either a stranger or a person who is a close relative to the owner of the gift.
ASKING A LAWYER IS FASTER THAN READING! GET PAY FOR IT !
In addition, a donation agreement for a vehicle may be declared invalid if it is proven that one of the parties was incompetent or misled at the time of its conclusion. The contents of the car deed itself should not contain any conditions limiting the operation of the transferred vehicle.
Taxation of the gift is also an important factor. Thus, in the case of concluding a transaction in which the parties are not close relatives, but strangers, the recipient will have to pay the appropriate state duty, the amount of which in 2019 is 13% of the estimated market value of the transaction, that is, the actual car. It is also good that when concluding this transaction between close relatives, its participants are exempt from taxation.
After completing the preparatory stage and receiving the recipient’s agreement to accept the gift, the parties can enter into a gift agreement, which experts recommend must be certified by a notary office. This will guarantee compliance with the terms of the deed of gift and your well-being.
When drawing up an act, the most important points must be written down in the main block:
- Data from the passports of the donor and the donee;
- technical data of the vehicle;
- car registration certificate number;
- date of transaction;
- signatures of the participating parties.
Important information : Remember that drawing up a car donation agreement without documentation that confirms the donor’s ownership of the car is impossible! As a rule, to confirm the legal ownership of this movable property, it is enough for the owner to present a vehicle registration certificate. But sometimes other documents may be required.
What documents are needed to draw up a donation agreement for a car in 2019?
Before registering a deed of gift for a car to a relative or non-relative, make sure that you have in your hands the entire package necessary to begin and complete the procedure of donating documents, namely:
- citizen's passport;
- PTS (technical device passport);
- insurance;
- an agreement indicating the actual market value of the vehicle being donated;
- a receipt confirming successful payment of the established state fee;
- an extract from the State Register confirming the absence of any restrictions on the car;
- vehicle registration certificate;
- if the donating party is officially married, the written consent of the spouse will be required to formalize the deed of gift (only if the car is part of jointly acquired property).
How to properly issue a deed of gift for a vehicle: step-by-step instructions from a lawyer
As we recently described in an article about a deed of gift for a house, in order for the gift transaction to gain legal force, you will need to adhere to the procedure established by the legislation of the Russian Federation.
- First, the donor must express his desire to donate the car to the recipient, who, in turn, must express a desire to accept this object of movable property, agreeing at the same time to pay the state duty (only if this party is not a relative).
- Now it’s time to draw up a car donation agreement, according to the scheme described above. At the same time, the content must indicate the object of the transaction, the procedure and conditions for its transfer and the details of the participants.
- After this, the new owner of the vehicle (the donee becomes the owner at the time of signing the deed of gift, unless another period is indicated in its content) re-registers the vehicle in the traffic police in his name.
Do you need a lawyer?
First, we note that the procedure for concluding a deed of gift for a car in 2019 is regulated by Article 574 of the Civil Code of the Russian Federation. In the same document you can find information that the drawn up gift agreement does not require mandatory certification by a notary. Thus, this is only a recommendation measure, which, however, can act as a guarantor of compliance with the terms of the transaction listed in the gift in the future.
You can find out for free whether you need to contact a specialist in your case by writing to the duty lawyer on this page!
At the same time, the act is certified only by mutual consent of the donor and the donee. If the parties nevertheless decide to use the services of a specialist, they need to provide the originals of the signed contract, their passport data, as well as the registration document for the car and a certificate indicating the actual cost of the vehicle (recommended, but not required), which is issued today by insurance companies upon request, as well as some maintenance firms that are licensed to perform such assessments.
How much does it cost to draw up a car donation agreement?
Having decided to transfer a car by gift to a non-relative, you must understand that the recipient will have to pay a tax, the amount of which in 2019 is regulated by Article 217 of the Tax Code of the Russian Federation, according to the provisions of which, when drawing up a gift agreement for a car between relatives, this tax is not paid.
If there is no family connection between the participants in the gift transaction, the party receiving the gift is obliged to pay an amount equal to 13% of the total market value of the gift itself . Expenses include registration actions, which, as a rule, do not exceed 5% of the total cost of the vehicle. You can learn more about this from this video:
Let's sum it up
A deed of gift for a car is one of the most profitable and fastest ways to transfer a car in modern law! However, in order for it not to be subsequently terminated by a court decision, it is not only important to draw it up correctly, taking into account the specifics of your situation, but it is also recommended to have it notarized.
If you have even 1% doubt about what to do and whether it is worth transferring the car this way, ask a lawyer from the Legal Ambulance website and receive a free answer within 5 minutes!
If you find an error, please select a piece of text and press Ctrl+Enter .
SAVE TIME and MONEY! GET FREE CONSULTATION from the BEST LAWYERS while others pay for it!
Rules for gifting a car between relatives
Donation of a car between relatives is carried out according to the created agreement. This type of agreement has its own specifics and a number of nuances. It is important to learn about such features before signing the document. So, let's figure out what you need to pay attention to when issuing a deed of gift for a vehicle to your closest relative? How is the procedure performed? What do you need to know for this?
What is a gift agreement?
A deed of gift is an officially drawn up document that proves the actual transfer of ownership of a vehicle to another person. A gift agreement can only be implemented during the life of the donor.
Important! The gift agreement is provided free of charge under any circumstances. This means that taking money for donated property is strictly prohibited.
Who has the right to draw up a deed of gift for a vehicle between immediate relatives?
The initiator of the creation of a gift agreement must be the owner of the vehicle. He draws up a document in writing indicating to whom he transfers ownership of the car.
In addition, a representative of incapacitated persons, for example a guardian, can draw up a deed of gift.
If a deed of gift is drawn up in favor of a child, then in order for him to become the owner of the vehicle, it is necessary to obtain official permission from the guardianship authorities. At the same time, the initiator of drawing up the gift agreement in this case should be the parents of the baby, who own the subject of the gift.
Who can become a donee?
Citizens of Russia have the right to donate their own property to any person. The recipients can be:
- organization;
- entity;
- stranger;
- close and distant relatives.
Moreover, it is important to know that a deed of gift for a vehicle to a close relative has several differences from a similar transaction that occurs between strangers or distant relatives.
Features of taxation when registering a car as a gift
The taxation process when drawing up a gift agreement for a vehicle has its own specifics. Receipt of ownership of the car must be indicated in the declaration, which must be submitted to the Federal Tax Service. For the tax service, the registration of a deed of gift is considered the receipt of income, and income, as is known, is subject to taxation.
The tax on a car received as a gift is 13%, which is paid at a fixed rate by the Federal Tax Service in case of receipt of income. In a situation with a donated car, interest will need to be paid based on the cost of the vehicle. But first you need to evaluate the property. This action is best carried out during the creation of the contract, including the price in the text of the agreement. This will help avoid the accrual of large tax contributions after receiving a vehicle as a gift.
However, there are exceptions to the rules. Under some circumstances, taxes will not be paid after the deed of gift is signed.
Under what circumstances can you avoid paying tax contributions after receiving a car as a gift?
Payment of tax contributions when receiving a car as a gift can be avoided if the recipient is a close relative of the donor.
Every person can give any property to their relatives without any restrictions. The recipient will not pay any taxes. The most important thing is that the transaction is completed free of charge. Otherwise, the Federal Tax Service may see the agreement as fictitious and immediately cancel it.
Who is considered the closest relatives in the Russian Federation?
In addition to everything listed above, it is necessary to understand who is considered a close relative in the Russian Federation. Only then can the gift agreement be drawn up correctly, taking into account the specifics of the current legislation.
In Russia, closest relatives are considered to be parents, spouses, children, grandparents, and grandchildren. The rest of the person’s surroundings, when receiving a car from him as a gift, will be required to pay tax.
Types of gift agreements
Before understanding how a deed of gift is executed, it is important to know what types of agreements exist. Currently in the Russian Federation you can find such types of deed of gift as:
- Standard - provides for the transfer of ownership of the vehicle as a gift to the recipient after the contract has been signed. This method of giving is considered not only the most popular, but also effective.
- With commitment in the future . This type of deed of gift indicates that a person will be able to donate his property only after some time. In modern practice, there is no demand for such agreements.
How does the process of creating a deed of gift for a vehicle between immediate relatives take place?
An agreement between the closest relatives is signed in several possible ways. The current laws of the Russian Federation offer the population the following options to choose from:
- An oral agreement with the purchase of a new car for the donee. This option is not particularly profitable, since an oral agreement can hardly be called a gift agreement. In addition, if something happens, it will be difficult to prove the fact of donating a car in court.
- Independent creation of a gift agreement registered in Rosreestr.
- Registration of a deed of gift for a vehicle through a notary.
Each citizen decides for himself which method of registering a gift agreement to use. Experts do not advise entering into an agreement verbally to avoid problems in the future.
Is it necessary to engage a notary to create a document confirming the donation of a car to a close relative?
Donating a vehicle to a close relative is considered a fairly important point that is of a legal nature. It is for this reason that the donor has to carefully study the specifics of concluding a transaction.
In the situation of registering a deed of gift for a car, the presence of a notary is not necessary. In this case, citizens can independently carry out the donation procedure.
However, to ensure that all clauses of the contract are filled out correctly, it is still worth contacting a notary. In addition, this is what will help you conclude a safe transaction.
How to complete an agreement to donate a vehicle to a close relative on your own?
To issue a deed of gift for a car to a close relative without the presence of a notary, the donor must:
- Prepare a detailed deed of gift.
- Collect all documentation for registering the transaction.
- Pay the state fee for the contract.
- Seal the deed of gift with signatures in Rosreestr.
- Carry out re-registration of ownership rights.
There is nothing complicated in the donation procedure, however, many citizens prefer to formalize everything through a notary because they want to protect themselves from possible problems.
How is a vehicle donation agreement drawn up through a notary?
This method is almost no different from drawing up a deed of gift yourself. An agreement to donate a car to a close relative is signed by the parties directly at the notary.
In order for this task to be realized, it is necessary:
- Collect all documentation.
- Write a deed of gift describing details of the subject of the gift and other features of the agreement.
- Pay the state fee.
- Pay for notary services.
- After this, with the prepared documents, both parties will need to contact a notary to sign the agreement.
- Take a copy of the gift agreement certified by a notary.
After completing the registration of the deed of gift, the donee must register the ownership of the vehicle.
Specifics of the gift agreement
The direct creation of a car donation agreement is an important point. Each deed of gift is drawn up individually, but taking into account the rules that help to correctly write the document.
A standard deed of gift for a vehicle to a close relative must contain:
- information about the donor;
- information about the recipient;
- description of the car being donated in all details;
- information about the absence or presence of an arrest or encumbrance on the car;
- date of donation of the vehicle;
- information about kinship;
- car price;
- terms and conditions regarding termination of the agreement.
The agreement must be signed by both relatives. If one of the signatures is missing, the agreement will be considered invalid, which means it will not be possible to formalize a new ownership right.
What documentation must be provided to register a deed of gift for a vehicle to a close relative?
The donor and recipient are obliged to approach the collection of documentation for the transaction with full responsibility. To donate a car, you will need to collect the following documents:
- a document proving ownership of the vehicle;
- PTS for cars;
- agreement;
- Russian passports of the donor and recipient;
- papers proving the relationship of the parties;
- check for payment of state duty.
The deed of gift in the presence of a notary is drawn up in triplicate. If the document is created and registered independently, two copies will be sufficient.
All documentation must be copied and provided to the notary. The authorized person will keep copies and a sample of the agreement. The remaining copies will be certified by him and handed over to the parties to the agreement.
Which authorities carry out the registration of deed of gift?
When you independently draw up a donation agreement, registration is carried out in:
- Registration Chamber or Rosreestr;
- Cadastral Chamber;
- MFC.
You will need to contact the registration authorities at the location of the property. When donating a vehicle, it is recommended to register the document at the donor’s place of official residence. However, the option of contacting the nearest MFC is not excluded.
After signing the documentation, the recipient should go to the traffic police department at his place of registration and register the vehicle.