Re-registration of a car from one spouse to another - what is the personal income tax upon sale?

Let's consider a situation: a newlywed couple purchased a car and registered it in his wife's name. She owned the vehicle for seven years, after which it was transferred to her husband. A year has passed, and the husband decides to sell the car.

It turns out that in total the couple owned the car for 8 years. But the sale is being handled by the last owner, who has owned the car for only a year. The question arises: is it necessary to pay income tax in this case and how can it be reduced?

Movable and immovable property acquired during marriage is officially considered joint property. Based on this, the period of ownership of a car for a husband will be considered the same as for a wife, that is, 8 years. To be exempt from personal income tax, the vehicle must be owned for more than 3 years. This condition is met, which means there is no need to pay personal income tax.

There is another option when the spouses, while officially married, entered into an agreement under which the wife is the sole owner of the car. In this case, the period of ownership of the car for the husband will begin from the moment the donation agreement is concluded and the documents are renewed (1 year) and income tax will need to be paid upon sale.

Content

  1. How to transfer a car from husband to wife?
  2. Why can’t you transfer a car from husband to wife by concluding a purchase and sale transaction?
  3. How to transfer a car to my wife using a deed of gift?
  4. Is it possible to register a car in the name of my wife by power of attorney?
  5. What documents do you need to collect to re-register a car in your wife’s name?
  6. How much does it cost to re-register a car for my wife?
  7. How to transfer a car to your ex-wife?
  8. How can I re-register a car in my wife’s name after my husband’s death?
  9. Is it possible to transfer a car to my wife at the MFC?
  10. How to register a car in the name of a spouse at State Services?

To successfully transfer the car to your wife, it is important to observe a number of legal subtleties. The procedure must be performed in accordance with the laws of the Russian Federation, and in this article we will tell you about popular options for re-registering cars for wives. Let's consider the rules for performing the procedure, the method of submitting an application to the MFC and State Services, as well as fees.

Re-registration options

At the legislative level, it is permissible to use several methods of transferring a car to a spouse. Each of them has its own advantages and disadvantages. Before you start collecting documents and starting the procedure, you should decide on the method.

Contract of sale

Concluding a purchase and sale agreement is the most universal and common way of transferring rights to property to a spouse. For the transaction to be free, the following conditions must be met:

  1. Husband and wife live together and run a joint household.
  2. The previous owner has owned the car for more than 3 years.

Please note that all documents must be completed correctly. In particular, it must be recorded that the husband received money from his wife for the vehicle.

The purchase and sale agreement is concluded in 3 copies . One is kept by each spouse and one in the traffic police department where the re-registration is carried out.

Gift deed

An important aspect associated with a gift agreement is that it is desirable to have it in writing. Despite the fact that oral form is also acceptable by law, it will not be an argument in court proceedings.

It is not necessary to notarize the deed of gift. Note that a necessary condition is that the donor has ownership rights to the car, as well as the legal capacity of both parties.

Detailed article on the topic:

Car donation agreement between close relatives

General power of attorney

The transfer of rights under a general power of attorney not only does not imply deregistration of the car, but is not a legal transaction at all. In essence, the owner simply allows the authorized person to use the car and carry out certain manipulations with it, specified in the document.

A general power of attorney is issued only through a notary and has a limited validity period - up to 3 years. If the owner dies under the power of attorney, the car passes to his heirs. Let us note that the wife is the successor in the first place, but if there are children, then they will also receive the right to part of the property.

Re-registering a car to your wife through a general power of attorney should be considered as a last resort. This option is not profitable and entails many difficulties.

Detailed flock on the topic:

What is a general power of attorney for a car and how to formalize it correctly

How to transfer a car from husband to wife?

Before you transfer the car to your spouse, you should choose the appropriate method for performing this procedure. It is impossible to conclude a purchase and sale transaction between spouses; it does not comply with the law. To transfer the rights of use, you can issue a general power of attorney, but in this case there is no need to re-register the car, or a deed of gift, after which it is necessary to make changes to the registration data of the vehicle.

When drawing up a general power of attorney, the owner of the vehicle does not change, but the spouse receives the right to drive the car, as well as perform legally significant actions in relation to it. In this case, fines for violating traffic rules will be issued to the owner, that is, to the spouse. It is also he who undertakes to pay the transport tax. The difference between a general power of attorney and an ordinary one is that it is certified by a notary.

The deed of gift provides for the transfer of transport free of charge. It is the basis for changing the owner’s data in the traffic police.

Division through court

In most cases, the division of jointly acquired property is carried out with the help of the court. Each spouse has the right to draw up and submit a statement of claim. Considering that the car is not divided into two parts, the judge can make the following decision:

  • the vehicle becomes the property of one of the spouses, and the other is paid monetary compensation equal to half the cost of the car;
  • sale of a car with subsequent division of the proceeds between spouses;
  • the car remains in common use of the spouses, who agree on the rules and procedure for its use.

The issue of dividing a car during a divorce in 2021 may be complicated by the choice of the person to whom it will be given ownership. If only the husband has a driver’s license, then he can count on getting a car. But when each spouse has rights, the judge will assess the extent to which ownership of the car is necessary. For example, if one of the spouses receives the main income by using the car as a taxi, then the car will be given to him. They will also take into account the presence of minor children who need to be transported to educational institutions, as well as the distance of their place of residence from work, etc.


How not to share a car with your second spouse during a divorce through the court.

The lawsuit must be filed in the place of residence of the defendant. If this is not possible, then at the location of the disputed property. Such cases are within the competence of city and district courts of general jurisdiction.

Vehicle valuation

Before going to court, it is advisable for spouses to determine the value of the vehicle at the time of the proposed division. If the car was purchased shortly before the trial, was not involved in an accident, and both spouses agree on the cost, then it will be the starting point for division. For example, the price of a car is set at 850 thousand rubles. If she remains the property of the husband, then he will be obliged to pay his wife monetary compensation in the amount of 425 thousand rubles.

If the vehicle was purchased a long time ago, then you will need to invite an independent expert to evaluate it. It is necessary that he is an active member of the SRO of appraisers and has insurance.

First of all, the specialist will request the title documents for the car, the agreement under which the car became property. Then he will carry out a visual inspection and evaluate the technical characteristics to determine the average cost of similar cars on the market. At the end of the examination, the specialist draws up a report in which he indicates the cost and calculation procedure.

Why can’t you transfer a car from husband to wife by concluding a purchase and sale transaction?

If a vehicle was purchased during marriage, it is considered joint property (exceptions can be specified in the marriage contract). When drawing up a purchase and sale agreement, the seller undertakes to transfer the property to the buyer upon receipt of payment. When it comes to a married couple, money obtained through joint income belongs to both. Thus, when drawing up the DCT, they will become the owners of what is already their property.

If a couple needs to share transport, it is recommended to draw up a division agreement. It must be written, it can be executed both during marriage and after divorce, the property is divided in half.

Legislative basis

When studying the issue related to the property of spouses, it is worth turning to the civil and family codes. The regulations state that any property acquired during marriage is community property. The exceptions are:

  1. Personal items – clothing, shoes, electronic devices.
  2. Property acquired before marriage belongs to the person who bought it.
  3. Items given or inherited.

As for a car, it is an indivisible property . This means that it is common property, but can only be registered in the name of one of the spouses.

Please note that the absence of a driver's license is not a limitation for registering a car. A person who does not have a license can own a vehicle but not drive it.

How to transfer a car to my wife using a deed of gift?

Re-registration of a car in the name of a wife on the basis of a deed of gift is regulated by the Civil Code of the Russian Federation. Procedure steps:

  1. The owner signs the deed of gift
  2. The new owner is preparing a set of papers. You will need a civil passport, PTS (if paper) STS, an application to the traffic police, the gift agreement itself, compulsory motor liability insurance
  3. State duty is paid
  4. The owner applies to the State Traffic Inspectorate office in person or through State Services, goes through the standard re-registration procedure, and receives an STS
Important! The service will be denied if there is an encumbrance on the vehicle or it is listed as stolen.

When transferring a car to your wife using a deed of gift, you should draw it up correctly. The document is drawn up in three copies (one for each of the parties, and one for the State Traffic Inspectorate). In order for the deed of gift to be valid, it is recommended that the following information be included in it:

  • data of the parties
  • address and date of signing
  • information about the vehicle
  • information about the DCP (or other proof of ownership)
  • procedure for transferring property
  • signatures
Important! If the deed of gift is made for a spouse, no tax is paid and filing a return is not required. It is not necessary to indicate the cost of transport in the document.

Is it possible to register a car in the name of my wife by power of attorney?

A general power of attorney gives the attorney a wide range of powers and must be certified by a notary, unlike an ordinary one. After drawing up the document, the car is not deregistered. The owner of the vehicle is still the spouse, but the spouse receives the right not only to drive the vehicle, but also to dispose of it, for example, to repair it.

The law does not stipulate a single form of the document, but when drawing up it is recommended to use the form provided by the notary. To transfer a car to your wife under a general power of attorney, you need:

  • passport
  • STS
  • PTS

A power of attorney is invalid if it does not contain the following information:

  • owner and trustee details
  • information about the vehicle
  • list of powers vested in an attorney
  • document validity period
  • signature and initials of the parties
Important! After issuing a power of attorney, there is no need to contact the State Traffic Inspectorate and make changes to the vehicle’s registration details. But it is necessary to enter the spouse’s name in the MTPL.

What documents do you need to collect to re-register a car in your wife’s name?

To re-register a car to your wife, you should prepare documentation in advance. The exact list depends on the reason for re-registration. For example, if the procedure is carried out by deed of gift, it is necessary to submit it to the traffic police along with other papers. If by general power of attorney, the power of attorney itself is required. The standard list, which is needed in any case, includes:

  • application (the form and sample form are issued at the department, you can also fill out an application at the State Services)
  • car owner's passport
  • PTS (if paper)
  • STS
  • document confirming ownership
  • OSAGO
  • receipt received after payment of state duty

How much does it cost to re-register a car for my wife?

When re-registering a car to a spouse, the owner pays a state fee. The cost of the procedure depends on the method of re-registration. When transferring a car between spouses, there is no need to change the license plate number, so the registration fee is not paid. However, if the car is registered after deregistration, you will still have to pay for the license plates.

When drawing up a general power of attorney, there is no need to re-register the car, therefore payment of state fees is not required. But the power of attorney itself, drawn up by a notary, is paid for.

Traffic police fees in force in 2021:

  • STS – 500 rubles
  • recording the owner’s data in the PTS (if it is paper) – 350 rubles
  • GRZ – 2000 rubles
  • duplicate PTS (completed, lost or damaged) – 800 rubles

Price

Re-registration of a car is not free. Minimum payments required to change ownership:

  • Fee for notarization of an agreement on the transfer of rights to property – from 1000 rubles ;
  • The fee for entering information into the PTS is 200 rubles .

If any additional manipulations are carried out, for example, changing license plates or obtaining a new STS, you will also need to deposit money.

Re-registration of a car by one of the spouses to the other is a fairly simple process, but it is important to follow certain rules related to both the sequence of actions and the preparation of documents. If the husband decides to re-register the car in his wife’s name, then he needs to decide whether this will be done through a sale or through a gift deed.

Both options have their advantages and disadvantages. As for the cost of the procedure, it is not free, but not expensive either. You will only need to pay for the services of a notary and pay a fee for correcting the documentation for the car.

How to transfer a car to your ex-wife?

The procedure depends on whether the couple was able to agree on the division of property. As we have already said, you can divide jointly acquired property by drawing up an agreement; it must be notarized. The agreement and the standard set of papers for re-registration of the vehicle must be submitted to the traffic police.

If the spouses are just planning to divorce, it is permissible to sign a prenuptial agreement. By law, it can be signed both before marriage and during marriage. Re-registration of the car to the wife under a marriage contract is carried out after the document is certified by a notary.

If the couple fails to reach an agreement, the car will have to be divided in court. Having a court order, you can contact the traffic police to obtain a new STS.

When the car is not divided

Partitioning a car in some situations provided by law is impossible. Actually, this rule applies to any property. If the car was inherited or was given to one of the couple, then the second spouse does not have rights to the car. Even if the transaction occurred during the existence of the family. True, if money from the general family budget was invested in the repair or improvement of the vehicle, then in the event of division of property the object will be recognized as joint property.

If one of the spouses bought the car before marriage, then it will also remain personal property.

How can I re-register a car in my wife’s name after my husband’s death?

Another reason for changing vehicle registration data is the death of the owner. In such a situation, it is impossible to re-register the car in his wife’s name without deregistration. To become the owner of a car, the spouse must have a certificate of inheritance; it is issued by a notary six months after the person’s death.

Having received the certificate, the spouse must collect the papers, buy compulsory motor liability insurance, contact the State Traffic Inspectorate and register the vehicle. A fee must be paid for a new STS, entering new data into the PTS (if it is not electronic) and obtaining license plates.

Important! After the death of the owner, the vehicle is deregistered by the State Traffic Inspectorate, and the license plates become invalid. Therefore, re-registration of a car in the name of a spouse without changing the license plate after the death of the spouse is impossible.

If there are two cars in the family

It happens that both spouses use cars. Each to their own, but they are common property. The division of such cars through the court will be accompanied by a mandatory expert assessment of the value, unless each spouse agrees to simply take the car they drive and not claim the second one.

Should the car go to the parent with whom the children stay?

Not really

This option is most often used if the car has a significant initial cost difference. In this case, after determining the price, each party can keep their car. But the owner of the more expensive one will be obliged to pay monetary compensation in the amount of the difference between the cost (exactly half).

Is it possible to transfer a car to my wife at the MFC?

Flagship MFCs provide services to the State Traffic Inspectorate. The car owner can visit the MFC to register or re-register the vehicle. You should make an appointment on the mos.ru website by logging in, selecting the appropriate branch, and entering the PTS number.

What is needed to transfer a car to your wife at the MFC:

  1. Make an appointment
  2. Prepare a standard set of papers
  3. At the chosen time, visit the branch, fill out an application and submit documentation
  4. Pay the state fee
  5. Provide the car for inspection and verification of VIN, body markings, chassis and numbered parts to the inspector
  6. Get a new STS

How to register a car in the name of a spouse at State Services?

An application to the State Traffic Inspectorate can be completed online at State Services. The user must log in to his account and fill out the electronic form. Procedure:

  1. In the catalog of services, find the category “Vehicle registration”
  2. Select the action “Change vehicle owner data”
  3. Fill out the form indicating the details of the vehicle and the new owner
  4. Select the branch where the new STS will be issued, time of visit
  5. Pay the state duty online (you can also pay it later at the bank or through a terminal)

At the selected time, the applicant must visit the selected unit with documents, provide the car for inspection by an inspector, and receive a new vehicle.

Contact our company and we will save your time. Experts will tell you how best to re-register the car in your wife’s name, help you correctly assemble the package of papers and carry out the registration steps for you. With us, any procedure at the traffic police takes no more than 30 minutes.

Arbitrage practice

As an analysis of judicial practice shows, dividing a car may be impossible due to its alienation.
Therefore, if the subject of a property dispute is a car, the plaintiff first needs to petition for the seizure of the object in order to prevent its sale. There are many examples of litigation that ended in nothing for the plaintiff after the sale of the car. The division of a car during a divorce in 2021 can be carried out through a personal agreement between the spouses or through the court. As a rule, in such a situation, one of the parties receives ownership of the car, and the other is paid monetary compensation in the amount of half the cost of the vehicle.

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