Is it necessary to submit a declaration when selling a car?

Filling out 3 personal income tax when selling a car

If you sold your car at a higher price than you bought before, that is, after completing the transaction you made a profit, then you need to fill out the 3-NDFL declaration when selling the car and pay tax. Its size is 13%. The procedure for filing a declaration is reflected in Art. 229 of the Tax Code of the Russian Federation.

Are you wondering when you should file your tax returns? How to fill out the 3-NDFL tax return when selling a car? It all depends on the date of purchase of the car:

• If you purchased a vehicle less than 3 years ago, then tax reporting must be submitted.

• Is a declaration necessary at all? If you have a car for more than 3 years, which is confirmed by a copy of the title, then you do not have to pay tax when selling it. There is also no need to fill out a declaration.

When purchasing a car at a dealership, you should take into account the date that appears on the certificate of invoice . This document is issued to the buyer by the organization. If you calculate that 36 months have already passed, you don’t have to fill out the declaration forms.

When you need to file 3-NDFL but you don’t have to pay tax after selling a car

Not in all cases, when selling a car, a citizen is required to pay taxes. This can be avoided in the following cases:

• if you sold the car cheaper than you bought it;
• if the car was in your possession for 36 months;
• if you sold a vehicle for less than RUB 250,000, but only one car per year.

If you sold a car that you owned for less than 3 years, then you can proceed as follows.

Situation 1 . When selling a car for less than 250 thousand rubles, a declaration must be filed, but there is no need to pay tax, because this is a non-taxable amount.

For example, you bought a car for 500 thousand rubles, and after an accident that occurred a year later, you sold it for 230 thousand rubles. You have in your hands all the documents that confirm the fact of purchasing the vehicle, as well as the fact of its sale. Since you sold the car cheaper than you bought it, there is no income. Therefore, there is no need to pay tax.

Situation 2 . The car was sold for over 250 thousand rubles, more than the purchase price . There are documents on hand. First, determine the difference between the purchase and selling prices. After this, calculate the tax amount.

For example , you bought a car for 900 thousand rubles, drove for a year, and then sold the car for 1 million 150 thousand rubles. Having determined the difference, multiply the amount by 13%. You must contribute 32 thousand 500 rubles to the budget.

You have had the car for less than 3 years, you sold it for less than you bought it for, and you have supporting documents in your hands. In this case, the declaration is filled out, but since there is no income, you will not have to make a contribution to the treasury.

For example , you bought a car, paid 450 thousand rubles for it, then you sold it two years later for 420 thousand rubles. You have the purchase invoice in your hands and the sales documents are available. There is no need to pay tax, because... Selling the car didn't bring you any profit.

Hotline

+7 (499) 350-80-61

+7 (812) 309-17-81

The date of the contract is the basis for the seller when interacting with the Federal Tax Service . But the date of re-registration of the vehicle, which is carried out by the traffic police, is not taken into account.

The traffic police transmits information to the tax office only after the car has been registered by the new owner. But when selling a car, the seller must know that he is obliged to file a declaration and pay tax on profits from the moment the contract is concluded and the amount for the car is received. If the car has several owners, then it is necessary to take into account the shares in the property, distributing the amount proportionally.

Filling out the 3-NDFL declaration when selling a car

In the year you sell the vehicle, you do not declare anything and you do not need to pay tax. When the current year ends, the tax period ends, you will need to declare income from the sale of the car.

Filling out the 3rd personal income tax declaration will not require much effort on your part. You can send documents via electronic communication channels. In addition, you can bring the declaration to the tax office in person and submit it with a representative. Please note that the person representing your interests must have a power of attorney. You can submit data by sending a declaration by mail. Be sure to make an inventory of the investment. The Federal Tax Service will consider the date of departure as the date of receipt of documents .

If you have lost your documents

It is believed that documents confirming the transaction are lost. The tax office receives data on the transaction amount from the traffic police. The tax inspector, checking the declaration, checks the taxpayer’s data with the information sent by the traffic police. It must be said that issues of loss of documents are resolved differently in the regions, but you can do the following:

• If you remember well the exact amount of the transaction, then submit 3-NDFL without supporting documents . After this, wait for the results of the desk check. If the tax office has any questions or discrepancies are found in the data, the service will send you a notification.

• Contact the Federal Tax Service and ask on the spot whether it is possible to attach a cover letter to the 3-NDFL . It will reflect a request to confirm the amount specified in the declaration with the traffic police. The reason for the application is the loss of supporting documents.

• Make a request in writing to the traffic police MREO . Ask for a purchase and sale agreement. Write an application, attach a copy of your passport, provide information about the car, information about the seller and the buyer. They will not refuse you, because you are a participant in the transaction. In addition, you are asking for a copy of the document, not the original.

If you look at the 3-NDFL declaration form when selling a car, you will see that it consists of 23 sheets. But to submit data on the sale of a car, you only need to fill out 6 of them. These are: title pages, sections 1 and 6, sheets A and E.

To simplify filling out the declaration, you can use the official program “Declaration 2015”. Download it at https://www.nalog.ru/rn77/taxation/taxes/ndfl/form_ndfl/.

Video: Detailed instructions for filling out 3 personal income tax when selling a car.

Conclusion

You can fill out the declaration yourself. If you are afraid that you cannot cope on your own, then contact a specialized accounting company.

Do I need to file a declaration when selling a car: legal ways to save on tax

If you have recently parted with your “iron horse”, do not rush to spend the entire amount received. First you need to find out whether the state is entitled to a part of it. In addition, whatever the answer to this question, taxpayers in the vast majority of situations are required to submit a declaration to the tax office for verification. Its form is established by law. It is universal and is marked 3-NDFL. In this material we will tell you whether it is necessary to submit a declaration when selling a car.

Do I need to submit a declaration when selling a car?

What happens if you don’t file a declaration?

Let us repeat, everything depends directly on the situation that developed during the sale. According to the letter of the law, in some cases the obligation to provide it from the payer is automatically removed. If this does not happen, failure to comply with the procedures established at the state level may lead to the imposition of various penalties on the taxpayer.

Ignorance is no excuse! This phrase is familiar to every resident of the Russian Federation from an early age, however, many citizens still refuse to study their own rights and responsibilities as a unit of a large state system. To avoid any difficulties related to the issue under discussion, read the material presented below.

Who is responsible for providing the declaration form?

All tax legal relations in the Russian Federation are regulated by a single set of relevant regulations received from the Ministry of Finance and the Federal Tax Service in particular. The overwhelming majority of them are collected in the so-called Tax Code of Russia.

Who is required to show the tax service the income received from the car sale transaction?

According to this document, every citizen who owns the vehicle in question must provide a declaration when selling a car, if there was any income from the sale.

The amount of personal income tax collection is calculated based on two parameters:

• the amount of income received;
• the tax rate applicable to this deduction.

Note! It is not by chance that we used the word “income”. It is important to understand that not in all cases the sale of a car brings income to its former owner, as it occurs under different circumstances.

As for the tax rate, for the required fee it is 13%, and it does not matter from which income the funds are deducted. 13% will also have to be paid from wages, money received for the sale of an apartment, car and other property of a property nature.

In reality, this deduction seriously impacts the citizen’s pocket. Imagine that the income from the sale of your car amounted to 1 million Russian rubles. In this case, the percentage paid to the state is 130 thousand. Serious amount.

The process is aggravated not only by the sadness of parting with a significant part of the money, but also by the bureaucratic difficulties associated with filling out the 3-NDFL declaration. Those who have already undergone this procedure will cope with the task easily, but beginners will have to work hard for the first time. To avoid difficulties, read our special article , which will help when filling out the declaration.

If the car is sold for a significant amount of money (for example, for 1 million 100 thousand rubles), then a considerable amount of funds will have to be transferred to the state treasury (in the example given - 143 thousand Russian rubles - 13% of the required amount). In addition, you will have to prepare a tax return and submit it to the tax service.

How to fill out the declaration form

Before moving on to the description of cases in which it is mandatory to provide a declaration, let’s consider how to fill out the required form. This will be useful even for those taxpayers who will ultimately be exempt from the procedure. The fact is that you will have more than one car in your life, and one day you will still have to provide a form for inspection.

We believe that initial preparedness will greatly facilitate this task for the taxpayer

Filling out the declaration is associated with constantly emerging bureaucratic difficulties, such as:

• errors in spelling words;
• incorrect form;
• skewed image on the sheet;
• incorrectly entered data;
• printing in an inappropriate format;
• incomplete preparation of documents accompanying the declaration and similar problems.

That is why the country's Federal Tax Service has taken all necessary measures to eliminate most of the problems that arise. This is how a program was developed, which is now freely available on the official electronic resource of the service. With its help, reporting to the tax office becomes easy, since all the payer needs to do is enter data in specific columns. After which the program will independently generate a form of the correct form and arrange the entered information in the corresponding positions on the sheet.

People who experience problems from working at the computer for long periods of time need not worry. The required software will help reduce the filling time as much as possible. The minimum filling costs will result in only 10-15 minutes. If in this case you prefer to act the old fashioned way, simply download the declaration form from the service’s website and fill it out without using the program.

Note! The electronic resource of the Federal Tax Service always provides current updates of the form, so there is no point in looking for a newer or correct option on the alien expanses of the Internet. You may end up with an incorrectly generated form, and then you will have to start the registration procedure all over again.

Important points

So, the following points must be indicated in the declaration form.

1. Information about the seller of the car, who is actually going through the procedure of declaring the income received subsequently from the sale. These include primarily:
   1. last name, first name, patronymic of the former owner of the car;
   2. data from the main document of a Russian citizen, that is, passport;
   3. information about citizenship;
   4. individual taxpayer number, which can be viewed on a special certificate obtained earlier at the same tax office.
2. Be sure to indicate the number of the tax office to which the form will be provided. It can be found out by the citizen’s place of registration, since depending on it the person is assigned to a specific department.
3. It is also necessary to indicate that you are a natural person and not a legal entity, that is, you are a citizen and not an organization.
4. The citizen’s address is indicated at the place of registration, in addition, it is necessary to indicate an individual encoding, which determines the citizen’s relationship to a specific locality (the abbreviated name of the described encoding sounds like OKTMO), that is:
   1. city;
   2. village;
   3. urban village;
   4. villages and other municipalities.
5. The income column declared in the declaration is filled in with the amount received as a result of the sale of the car. The source of income is the citizen who purchased the vehicle. There is no need to fill in the buyer’s affiliation code for a specific municipality. If he is an individual, then the following details are entered:
   1. first name, patronymic, last name;
   2. registration reason code;
   3. taxpayer identification number.
6. In the second section of the form, enter the amount of tax if its transfer to the country’s treasury is charged to the payer in this particular case.
7. When selling a car, the seller has the right to receive a tax deduction; it must also be declared in the declaration in the appropriate column. If filling out is done through the program, select one of the deduction options that you are going to use.

Pay attention to an important nuance! When you fill out and print out the 3-NDFL form when selling a car, do not rush to immediately take the documents to the tax office. First of all, put your personal signature and date on each page of the paper.

As you can see, preparing a declaration form, which frightens many taxpayers with its non-existent complexity of filling out, is not at all as labor-intensive as it initially seems.

Actually, the main thing is to correctly indicate the income received when entering information. This required case of filling out the form differs from the procedures for obtaining a tax deduction from personal income tax paid to the treasury, for which it is necessary to enter in detail data on acquired income for the entire reporting tax period in which the fees were withheld.

The procedure for submitting a declaration form for verification to the tax service

Let’s move on to consider possible situations in the event of which the payer is relieved of the obligation to declare information about the transaction and income received.

Do I need to file a return and pay tax if I sell a car?

When selling a car, many people don’t think about the possibility that you will have to pay tax when selling it. Most often, the car is sold for less than it was purchased for. “What tax? – you ask, “I sold at a loss!”

Information about the sale of a car is received by the tax authorities from the traffic police. And this information does not contain information about the purchase of the car - when and how much you bought it for. This is why it is necessary to file a declaration. And when registering the sale of a car, it is important to think about possible taxes.

If you have owned the car for more than 3 years

There will definitely not be a tax if you have owned the car for more than 3 years.

No, the car is not more than 3 years old, but you have owned the car for more than three years. That is, about when you acquired ownership and when you lost it, you need to take information from the Vehicle Passport (PTS).

If you have owned the car for more than 3 years, then what price you sell it for does not matter. In this case, there is no need to submit a declaration (clause 17.1 of Article 217 of the Tax Code of the Russian Federation).

If you have owned the car for less than 3 years

When selling a car that you have owned for less than 3 years, you must declare your income. This means you must submit a declaration in form 3NDFL before April 30 of the next year (Article 229 of the Tax Code of the Russian Federation). You need to submit a report even if you do not owe taxes. After all, information about tax calculation is indicated in the declaration.

So you are selling a car. But you bought it in the next three years? How much?

You need to find a contract for the purchase of a car and look at the price there.

If the sale price is less than the purchase price, then you will not pay tax. But to do this, you need to submit a declaration, indicate this information in it and attach supporting documents, namely: a purchase agreement and a sales agreement.

If you do not have the documents or the car came to you free of charge (inheritance, gift), you are entitled to a standard deduction in the amount of 250 thousand rubles (clause 2 of Article 220 of the Tax Code of the Russian Federation). From the cost of selling the car, you will subtract 250 thousand, and multiply the rest by 13%. The result will be the amount of tax that you will need to declare by April 30, and pay by July 15 of the next year (clause 4 of Article 228 of the Tax Code of the Russian Federation).

For example, in 2018, Ivanov and Sidorov sold identical Lada Vesta cars from 2017 for 520 thousand rubles. Both had owned their cars for less than three years. Ivanov inherited the car and, accordingly, he has no costs for the purchase. And Sidorov bought a car 2 years ago for 580 thousand rubles, but lost the purchase documents. What taxes will Ivanov and Sidorov pay? Let's consider both options.

1. Ivanov. Since he actually got the car for free, he has nothing to deduct from the sale of the car, except for the standard deduction in the amount of 250 thousand rubles.

So, the tax calculation will be as follows: (520,000 rubles – 250,000 rubles) x 13% = 35,100 rubles.

Ivanov must declare this transaction (submit a declaration) before April 30, 2019 and pay a tax of 35,100 rubles. until July 15. If he does not do this, the tax authority will fine him 30% of the tax amount - this is 10,530 rubles (this is the maximum amount). In addition, Ivanov will also have to pay the tax itself - 35,100 rubles. And, possibly, a fine of 20% of the tax amount (7020 rubles) and a penalty of 10% per year of the tax amount.

Recommendation for Ivanov: wait another year and sell the car without taxes.

1. Sidorov. Since the car was purchased 2 years ago for 580 thousand rubles, Sidorov has no benefit when selling the car. He also needs to submit a declaration in form 3NDFL by April 30, 2019, but in order not to pay tax, he needs to find the lost documents. If Sidorov does not find the documents, he will have to pay tax.

The tax calculation will be as follows: (520,000 rubles – 250,000 rubles) x 13% = 35,100 rubles.

Sidorov benefits from finding the documents. After all, the loss of papers costs him 35,100 rubles, a fine of up to 10,530 rubles, a fine for non-payment of 20% tax - 7,020 rubles and, possibly, a penalty of 10% per year of the tax amount.

If he had found a contract to purchase a car, he would not have to pay tax.

The calculation will be as follows: 520,000 rubles. – 580,000 rub.

Car sales tax

If you sell a car, you must pay sales tax. The tax amount is standard - 13% of the money you received from the buyer. However, there are legal ways to reduce the tax or not pay it at all.

Today we will tell you in what cases the obligation to pay tax arises, which sales tax does not require payment, how the amount of tax is calculated and how to reduce its amount.

Which sales are not subject to tax?

There is a concept of a minimum period of ownership of property. If you have owned the property for longer than the minimum period, you do not have to pay tax when you sell it. Reason: clause 17.1 of Art. 217 Tax Code of the Russian Federation, paragraph 4 of Art. 229 of the Tax Code of the Russian Federation.

The minimum period for selling a car without tax is 3 years. If you own a car for more than three years, you are not required to notify the tax office about the transaction, file a 3-NDFL declaration and pay tax.

If you bought a car , the ownership period begins from the day you sign the sales contract.

If you inherited a car , you are considered the owner from the date of opening of the inheritance, that is, from the date of death of the testator.

If you were given a car , the ownership period begins from the day the donation agreement is signed.

Example:

In May 2015, you bought a car and sold it in August 2018. You do not need to contact the tax office and pay tax, since you sold a car that you owned for more than 3 years.

Register in your personal account of the online service NDFLka.ru! We will give individual recommendations and calculate what sales tax you need to pay.

How to avoid paying or reduce tax when selling a car

If you sell a car that you have owned for more than 3 years, you do not need to notify the tax authorities and pay tax. But what if you own the car for less than three years? Is it possible to reduce the tax amount or even reduce it to zero?

The legislation of the Russian Federation provides for tax benefits that reduce the tax base - the amount you were paid for the car. After applying the benefit, you can significantly, and sometimes even to zero, reduce the tax on the sale of a car.

. Important:

If, after applying the benefit, the tax becomes zero, you must still submit a 3-NDFL declaration to the tax office at your place of residence. The declaration reflects the income from the sale and the calculation of tax. Only this document will confirm that you did not legally pay tax when you sold the car. Otherwise, the tax authority will have questions for you and a fine will be imposed on you.

Deduction of expenses to reduce tax (difference between purchase and sale)

One way to reduce personal income tax on sales is to deduct expenses. What does it mean? The legislation determines that tax can be paid not on the entire amount received during the sale, but minus the purchase amount. That is, the difference is taken between the money that you received for the car and the money that you once paid for the same car. 13% tax is paid on this amount. Base: pp. 2 p. 2 art. 220 Tax Code of the Russian Federation.

Example:

In 2017, you bought a car for 700 thousand rubles and in 2018 you sold it for 900 thousand. In 2019, you must submit a 3-NDFL declaration to the Federal Tax Service. How much sales tax will you pay? It is more profitable to use the deduction of expenses and pay 26,000 rubles = 13% x 200 thousand.

Example:

In 2018, you bought a car for 1.2 million, and in 2019 you sold it for 1 million. Since the sale price was less than the purchase price, you are exempt from paying tax. Don't forget to submit your declaration! Despite zero income, you are required to notify the tax authorities about the transaction .

When buying and selling a car, be sure to save documents: contracts, bills, receipts. Copies of these documents will need to be submitted to the tax office along with the 3-NDFL declaration.

Entrust filling out the 3-NDFL declaration to a personal tax expert from the online service NDFLka.ru. We will draw up competent documents for you and tell you which sales are tax-free

Property deduction of 250 thousand rubles

There are situations when it is not possible to apply an expense deduction. For example, when the car was not purchased, but was inherited or given as a gift. Since there were no expenses for its acquisition, there is nothing to take the difference from. In this situation, you have the right to apply a property deduction upon sale, the maximum amount of which is 250 thousand rubles. That is, you can reduce the tax base by this amount. Let us remind you: the taxable base is the money that you received from the sale of the car, and on which you must pay tax. Base: pp. 1 item 2 art. 220 Tax Code of the Russian Federation.

If the cost of the car is less than 250 thousand rubles, it is beneficial to use the property deduction.

Example:

You sold your inherited car for 1 million rubles. Since you had no expenses to purchase it, you cannot make an expense deduction. What is the final sales tax? By applying the property deduction, you will have to pay 97.5 thousand rubles = 13% x (1 million – 250 thousand).

You can reduce your tax with another deduction

Tax deductions for other items may offset some or all of your tax. If in the same year you sold a car and, for example, paid for medical treatment, then the deduction for treatment will be taken into account when calculating the tax on the sale of the car. Tax deductions are described in detail in articles about treatment, training, and buying an apartment.

Example:

In 2016, you bought a car for 800 thousand and in 2018 you sold it for 1 million rubles.
The period of ownership of the car is less than 3 years, so you must fill out a 3-NDFL declaration and submit it to the tax office. Also in 2018, you paid 100 thousand rubles for your mother’s treatment. How much tax will you ultimately have to pay on the sale of your car? The calculation will look like this: - Subtract expenses (1 million - 800 thousand).
— We apply a deduction for the treatment of the mother (100 thousand).
The final tax amount when selling a car: 13% x (1 million – 800 thousand – 100 thousand) = 13 thousand rubles.

A tax expert from the online service NDFLka.ru will answer all your questions, help you fill out the 3-NDFL declaration yourself, or do all the work for you

Rules for applying deductions when selling a car

Both deductions cannot be applied to one car . You must choose whether to reduce your tax base through a property deduction or through a deduction of acquisition costs. Reason: Letter of the Federal Tax Service of Russia dated February 12, 2013 No. ED-4-3/2254@.

Example:

In 2017, you bought a car for 500 thousand rubles, in 2018 you sold it for 600 thousand. In 2019, you must submit a 3-NDFL declaration.
Let's calculate which scheme is more profitable for you: - Deduction of expenses for purchasing a car.
The tax is taken from the difference between the sale price and the purchase price: 13% x (600 – 500) = 13 thousand rubles. — Property deduction.
The tax is taken into account that income decreases by 250 thousand rubles: 13% x (600 – 250) = 45.5 thousand rubles. Obviously, in your case it is more profitable to deduct acquisition costs.

Example:

In 2016, you bought a car for 200 thousand rubles, in 2018 you sold it for 250 thousand. In 2019, you must file a 3-NDFL declaration.
Let's calculate which scheme is more profitable for you: - Deduction of expenses for purchasing a car.
The tax is taken from the difference between the sale price and the purchase price: 13% x (250 – 200) = 6.5 thousand rubles. — Property deduction.
The tax is taken into account that income is reduced by 250 thousand: 13% x (250 – 250) = 0 rubles. Obviously, in this case it is more profitable to apply a property deduction, since after applying it you will not have to pay tax. Don't forget to submit your declaration! Despite the sale of the car without tax, you are required to notify the tax authorities about the transaction.

In one calendar year, you can use no more than 250 thousand rubles of tax deduction on all property sold. An exception is the tax on the sale of an apartment and other real estate. This means that no matter how many cars you sell during the year, the amount of the deduction will not exceed 250 thousand rubles.

Example:

You inherited two cars and decided to sell them for 300 thousand rubles each. You can only apply the property deduction once, so the tax calculation for the sale will look like this: 13% x (300 + 300 – 250) = 45.5 thousand rubles.

Deadlines for filing a 3-NDFL declaration and paying tax

After selling the car, you must report to the tax authorities. To do this, before April 30 of the next year, you must prepare and submit to the tax office at your place of residence the 3-NDFL declaration and a package of related documents. Grounds: clause 3 of Art. 228, paragraph 1, art. 229 Tax Code of the Russian Federation

The declaration reflects the income you received from the transaction and the tax deductions applied. If the declaration is zero, nothing more is required from you. If there is still tax left after applying the deductions, it must be paid by July 15 of the same year.

Example:

In 2018, you sold a car that you owned for less than 3 years. By April 30, 2019, you must fill out the 3-NDFL declaration and submit it to the tax office. Since, as a result of the calculation, you still owe, you have until July 15, 2019 to pay the tax on the sale of the car.

To correctly calculate income tax when selling a car, use the services of the online service NDFLka.ru. We will help you draw up a 3-NDFL declaration, answer questions and minimize your costs

Should I submit 3-NDFL when selling a car?

Let's start with the fact that not every sale of a car generates income subject to personal income tax for its former owner. So, if a citizen sold a car that he owned for more than 3 years, then the cost of its sale is not subject to personal income tax (clause 17.1 of Article 217 of the Tax Code of the Russian Federation). And if an individual does not have taxable income, then there is no need to file a 3-NDFL declaration (Letter of the Ministry of Finance dated May 30, 2018 N 03-04-05/36698).

Let us note that when selling vehicles that are more than 3 years old, no income arises for citizens who (clause 17.1 of Article 217 of the Tax Code of the Russian Federation):

• are tax residents of the Russian Federation, i.e. they were actually in the Russian Federation for at least 183 calendar days over the next 12 consecutive months (clause 2 of Article 207 of the Tax Code of the Russian Federation);
• did not use the sold car in business activities.

If a car that a citizen has owned for less than 3 years is sold, the individual will receive income. This means that you will need to report it to the Federal Tax Service.

Personal income tax on the sale of a car less than 3 years old

Before we talk about reporting, let's look at the amount of tax. In order not to pay personal income tax on the entire sales price of the car, the seller can use the following deduction:

• or in the amount of expenses spent on the purchase of this vehicle, if there are documents confirming these expenses;
• or in the amount of 250 thousand rubles. (clauses 1, 2, clause 2, article 220 of the Tax Code of the Russian Federation).

For example, you sold a car for 750 thousand rubles. But you have documents confirming that you bought this very car 2 years ago for 1.2 million rubles. Then your personal income tax base will be negative (750 thousand rubles - 1.2 million rubles), and you will not have to pay personal income tax. But if the documents confirming your expenses from 2 years ago have not been preserved, then you will only be able to take advantage of a deduction in the amount of 250 thousand rubles. Accordingly, the personal income tax base will be 500 thousand rubles. (750 thousand rubles - 250 thousand rubles), and the tax amount is 65 thousand rubles. (500 thousand rubles x 13%). Since the income of tax residents of the Russian Federation is taxed at a rate of 13%.

The tax must be paid no later than July 15 of the year following the year of sale of the car (Clause 4 of Article 228 of the Tax Code of the Russian Federation).

Declaration 3-NDFL after selling a car

If income from the sale of a car, subject to personal income tax, arises, the citizen is obliged to report it to the Federal Tax Service. Moreover, even if, thanks to deductions, the amount of tax payable turned out to be zero (clause 2, clause 1, clause 3, article 228 of the Tax Code of the Russian Federation).

This means that you will need to submit a declaration in form 3-NDFL (Appendix No. 1 to the Order of the Federal Tax Service dated December 24, 2014 N ММВ-7-11/671@) to the inspectorate at your place of residence no later than April 30 of the year following the in which the car was sold (clause 1 of Article 229 of the Tax Code of the Russian Federation). If, for example, you sold a car (which is less than 3 years old) in 2018, then you will have to submit 3-NDFL no later than April 30, 2019.

The declaration reflects the following information:

• about the income received. However, you do not need to indicate data on the income from which tax has already been withheld by the tax agent. We are talking primarily about salary and other payments you received from your employer;
• about the claimed deductions.

The declaration can be completed:

• or using the “Declaration” program posted on the Federal Tax Service website. To do this, you will first need to install it on your computer;
• or in the Personal Account of an individual on the Federal Tax Service website, if you are connected to it.

The completed declaration can be submitted to the inspection both on paper and electronically – through your Personal Account.

Is it possible not to submit a declaration, maybe the tax authorities won’t find out about the income? This is unlikely. As you know, every car must be registered. And the authorities that register vehicles are required to report registered cars and their owners to the tax authorities within 10 days from the date of registration (Clause 4 of Article 85 of the Tax Code of the Russian Federation). Therefore, the Federal Tax Service specialists will learn about the change of owner of the car quite quickly.

And do not forget that the Tax Code provides for fines:

• for non-payment of personal income tax in the amount of 20% of the unpaid tax amount (clause 1 of Article 122 of the Tax Code of the Russian Federation), plus penalties may be collected from the car seller for each day of delay (Article 75 of the Tax Code of the Russian Federation);
• for failure to submit reports (3-NDFL) in the amount of 5% of the unpaid tax amount for each month, but not more than 30% of this amount and not less than 1000 rubles (clause 1 of Article 119 of the Tax Code of the Russian Federation).