You can find out about the pros and cons of an apartment donation agreement and its types, as well as what is better to draw up: a deed of gift, a will or a purchase and sale on our website.
Registration required
Why are all transactions recorded?
First of all, this is necessary so that citizens can legally feel like newly-minted owners.
It would also be nice for the state to know what procedures are carried out between citizens and perhaps gain information about the well-being of citizens.
One way or another, all registration authorities maintain a so-called register, into which information about registered transactions .
But if you think that after completing the registration procedure your actions end, you are deeply mistaken. The fact is that now, upon concluding an agreement, they are simply obliged to carry out tax legalization of the entire procedure.
As you know, every transaction allowed by civil law is taxable and only in some cases can this situation be avoided (if you and the donee are relatives).
You can find out how much a gift to a close relative will cost in our article.
In other situations, you need to pay tax . But in order to competently fulfill your civic duty, you need to be able to properly fill out a tax return, which has a clearly established Form 3 of personal income tax. We will talk more about this in the following paragraphs.
Personal income tax declaration form 3.
Sample of filling out 3 personal income tax when donating an apartment.
Find out about the features of registering a deed of gift for an apartment from a notary, the MFC or Rosreestr.
What are the consequences of late declaration or non-payment of tax?
Many citizens neglect the rules to pay taxes. They believe that if they violate the requirements of the law, they will save their money. But this is far from true.
In a situation, if you neglect the requirements of the law, it is likely that you will not find yourself in the most pleasant situation.
Namely, be prepared for the fact that the tax authority may take you to court.
The court will most likely take the side of the tax authority if you do not have compelling reasons for non-payment. This means that you will be forced to pay the amount.
So, you will need to either pay the amount of tax, and if penalties were accrued, then they too, or the collection will be applied to your property. Agree, this is unpleasant, so try to avoid such situations.
All in your hands. Do not delay payment, because a three-month period is a very realistic period for paying the cost of the donation transaction.
Conceptual apparatus
What is and why do you need form 3 personal income tax when donating an apartment? As you remember, donation is a transaction that falls within the competence of civil transactions.
One way or another, this procedure is taxable, unless it has some nuances. What does a donation consist of and why is tax required ?
Donation is a transaction that is regulated by the civil code .
In addition, this is an action that implies the transfer of property from one legal possession to the ownership of another person.
The transaction is two-sided and the donor, the person who alienates the property and the donee, who accepts the property, participate in it on completely equal rights.
The deal has a number of other features. For example, it is absolutely free . This means that the donor, without any mercantile interest, transfers the property into someone else’s ownership, without claiming any reward.
This is what makes the deal remarkable. You can learn more about all the nuances of the transaction in Chapter 32 of the Civil Code.
But we are still interested in the question related to Form 3 of personal income tax. What kind of paper is this, how is it filled out , and most importantly, is it really necessary?
Form 3 of personal income tax itself is a kind of tax return, typical for submitting information when carrying out transactions.
This document is recognized as special and is submitted to the tax office directly at the place of registration of the citizen in order to notify the state of his income or, conversely, expenses.
Entrepreneurs, lawyers, notaries and other persons who are not officials, that is, do not work for government agencies, are required to submit such documents.
It is also customary to submit a document using this form when it comes to a sale or purchase transaction or a gift.
Refusal to submit this document to the tax authority is equivalent to an administrative violation and can cause many problems.
Read on our website about whether it is possible to sell, transfer or return a donated apartment, as well as how the donor can revoke the deed of gift in a timely manner.
Responsibility for late submission of a tax return
According to Art.
119 of the Tax Code of the Russian Federation, if the deadline for submitting the declaration is violated, the payer is held accountable. He is charged a fine of 5% of the unpaid amount for each month of delay. The minimum fine is 1,000 rubles, the maximum is 30% of funds not transferred to the budget. Case study:
The citizen received an apartment as a donation, the cadastral value is 2,000,000 rubles. The amount of personal income tax payable is 260,000 rubles. at a rate of 13%. He was 1 month late in paying his taxes, for which he was held accountable and ordered to pay a fine of 5%. The total amount was 13,000 rubles.
Due to missing the deadline, instead of 260,000 rubles. he had to pay 273,000 rubles.
Important! For failure to provide a document, there is also administrative liability under Art. 15.5 Code of Administrative Offenses of the Russian Federation. Sanctions include a warning or a fine of up to 500 rubles.
Methods for filling out the form
How to fill out 3 personal income taxes when donating real estate? In order for the filling out to be competent and correct, it was accepted the first time and you do not spend a long time carrying your papers back and forth, we will give a number of practical tips that will certainly help with your problem.
So, first of all, if you have never seen what a tax return looks like, you don’t know exactly how to fill it out, and in general you doubt that you understand anything in this matter, then it is better not to tempt fate.
Contact a specialized office , which is obliged to help you fill out such an important document, based on the situation.
Of course, you should remember that this assistance is provided on a paid basis, but it helps to significantly save time that would have been spent delving into the issues of drawing up the form.
If you still feel that the task yourself
- You will need a number of documents to fill out. These include a passport, deed of gift, documentation from the tax code, access to the Internet.
- If you are the person to whom the apartment was given as a gift, you can fill it out only after the transaction has been registered and after you have received the ownership documents. Previously, this action of filling out the form could not be carried out.
- from the official website of the tax service or search on the Internet. You are encouraged to fill out the form by computer rather than by hand.
When filling out, follow these steps :
- enter the number of the inspection you contacted;
- indicate in the taxpayer characteristics section the option other person;
- in the available income tab, select the income of an individual taken into account as a result of concluding contracts of a civil nature or nature;
- indicate the source of payments received by selecting from the list listed.
Once completed, the document is printed in several copies, with your initials, date of completion and signature.
You can find out whether there is a difference in the cost of registering a deed of gift for an apartment owned for less than three years in our article.
Determining the value of land
Information on the value of a land plot can be obtained from the Rosreestr authorities. At the same time, the interested party may apply to the authorized body for an expert assessment. The result will be issued to the initiator in the form of an extract. The final cost depends on a number of factors. First of all, this is the characteristics of the territory itself and its location. This takes into account the quality of the land and its purpose.
The presence of linear structures and means of communication, environmental conditions and economic benefits for the user also play an important role. The calculations are based on the cadastral value of the site.
Step-by-step instruction
Drawing up a declaration in actions looks like this:
- Collect a package of documents.
- Check to see if you have taken ownership.
- .
- Fill it out.
- Take it to the tax office.
- Pay the tax.
Find out on our website how much it costs to formalize a deed of gift for an apartment, including from a notary.
Attached documents
The payer must attach documents to the tax return that will confirm the validity of the payments. Otherwise, the information may not be accepted. First of all, the payer provides his passport. In this case, a copy of it from the pages with biographical data and information about the place of registration is also suitable.
Next, you must provide your tax payer identification number. It is assigned to a person by the Federal Tax Service. A gift agreement signed by the parties will also be required. The list of data is completed by documents relating to the site itself. These include: a certificate of ownership or an extract from the Unified State Register, as well as a cadastral passport of the plot, indicating its location, total area and boundaries.
Features and nuances in design
Is 3rd personal income tax required when donating an apartment to a close relative? If the apartment is donated to a close relative, this is reflected in the contract and, in principle, you can prove your relationship, then the donor and recipient are exempt from thirteen percent tax .
However, the question of filing 3 personal income tax or not in this case remains open. And since the state does not receive income from your transaction, you can file either a zero declaration or not file it at all.
Is it applicable when donating a share of an apartment?
It doesn’t matter which part of the apartment we are talking about, or the entire property, as in the above-mentioned situation, the tax is not paid and only you have the choice of whether to file or not.
Is it necessary to submit a declaration when donating an apartment from a legal entity to an individual? An individual or a legal entity undoubtedly needs to pay tax , which means drawing up Form 3 of personal income tax and then submitting it to the tax office is a mandatory step.
What income code should I write down? It is worth indicating the apartment donation income code 4900 . However, if you have any doubts about the information you found on the Internet, leave the space for the entry empty and ask tax officials about this issue.
How to fill out 3 personal income tax when donating income code
You will also need your tax office number - this is a 4-digit code. Find it out at your branch at your place of registration. Most likely, these 4 digits should match the first four digits of the TIN. IMPORTANT! 1. When buying a car, be sure to make a copy of the contract for yourself! This may be useful to you in the future to receive a tax deduction. 2. When selling a car, you must keep your copy of the contract! It is also recommended to make a copy of the PTS.
The list of types of state control in which a risk-based approach is applied has been expanded. Now this list also includes checks for compliance with labor legislation requirements carried out by the labor inspectorate. The Tax Service has changed its position regarding filling out field 101 “Payer Status” in payments for the transfer of insurance premiums. Now it is recommended for legal entities to use the status “01”, and individual entrepreneurs – “09”. From 01/01/2021, insurance premiums in case of temporary disability and in connection with maternity must be paid to the Federal Tax Service.
Terms of a transaction
To conclude a deed of gift, certain conditions must be met:
- property is donated free of charge;
- property is transferred without conditions;
- the donor must have full legal capacity at the time of the transaction;
- the parties must understand the legal consequences of the transaction;
- the donor should not be under pressure (physical or psychological pressure);
- property documents must be originals;
- the object of the donation must be the private property of the donor;
- an object in joint ownership is donated with the consent of the spouse (other owners);
- third parties should not claim rights to the object;
- the object should not be under an encumbrance (pledge, arrest, mortgage).
For a transaction to be carried out legally, all the described conditions must be met. In many cases, it is impossible to independently check all the nuances. Therefore, it is advisable to seek help from a notary. Before drawing up the contract, he will conduct checks on the object and documents, explain the pros and cons of donation in a particular case. If any doubts arise, the deed of gift will not be certified until the defects are eliminated.
What is the code for the type of income in the 3-NDFL declaration
- CFC profit - code 21;
- dividends - code 22;
- interest - code 23;
- royalty - code 24;
- income from the alienation of property - code 25;
- income from the alienation of shares and similar rights, more than 50% of the value of which is represented by real estate located in another state - code 26;
- income from the provision of independent personal services - code 27;
- income from employment - code 28;
- directors' fees and other similar payments received as a member of the board of directors or any other governing body of the company - code 29;
- income from personal activities as a theater, film, radio or television artist, musician or athlete - code 30;
- income from public service - code 31;
- other income - code 32.
How to reflect the donation of shares in 3 personal income taxes for 2021
Upon acceptance, the declarant will be given, most often on the spot, a notice of the occurrence of tax liability and the need to pay tax. So the two-month period must be calculated from the date specified in the notification. But at the same time, there is no need to rush to pay the tax.
Determining the value of property received under a gift transaction As is known, the value of the property received by the donee as a gift is of particular importance when calculating the amount subject to payment of income tax, since it is his actual income - economic benefit. At the same time, based on the Information Letter of the Ministry of Finance of the Russian Federation, No. 03-04-05/3074 dated January 28, 2015, it is the market value (Article 7 of the Federal Law No. 135) of the subject of donation that is subject to determination for income tax purposes (Chapter 23 of the Tax Code), on the date of conclusion of the agreement under which this item was alienated. Determining the market value of the donated item is based on the market value of similar property benefits existing on the date of the donation.
