How to return income tax when buying a car

When buying a car, unlike the housing tax deduction to impossible. The current legislation does not provide this opportunity. Another thing is that when you buy a car can you take care of getting rid of the need to pay tax in case of its subsequent sale. The procedure for obtaining a tax deduction when selling a vehicle the same as any other tax deduction.

You will need

• - confirmation of the acquisition of the machine;
• - certificate of state registration of the vehicle;
• - tax Declaration under the form 3 personal income tax (not in all cases);
• - confirmation of all income received for the year in which you sold the car, and paying personal income tax;
• - the statement on granting of a tax deduction (not in all cases).

Instruction

1. When buying a car, retain the document proving how much you cost. Depending on the situation, it is the invoice and receipt from the dealership, the contract of sale, Bank documents confirming the transfer of money (will not be superfluous to specify in the payment that the payment for the purchased machine), receipt of a buyer or other evidence. The import of foreign cars bought abroad, keep a certified translation of all papers confirming the transaction and the cost of the car and customs papers confirming the payment of import duties on foreign cars.
2. Keep your existing documents, confirming the cost of the car for three years. They will come in handy if you decide to sell the car before the expiry of that period, provided that for it you will receive an amount less than was spent during the purchase. But in practice most often the case. Exception - foreign cars, especially purchased overseas for resale in Russia.
3. When these conditions are met after the vehicle complete the tax return. The deadline for filing is April 30 of the year following that in which the transaction took place. Optimally reflect the transaction, indicating who sold the car (need to enter in the Declaration the name of the buyer - the physical person or name of legal entity). However, income enter as zero. To the Declaration and attach copies of the documents confirming your expenses and sales. Because they indicate the incurred loss tax you should not pay.
4. If the documents have not survived, but the car did you have the ownership of less than three years, all is not lost. You have the right not to pay tax on the portion of the proceeds from the sale of up to 125 thousand rubles. inclusive. In other words, if the car sold for that amount or less, tax free. But submit a Declaration and a statement on the granting of deduction have.
5. If you sold the car, which is owned less than three years, more than bought the right to tax deduction of up to 125 thousand rubles applies to such transaction. For this purpose also it is necessary to submit to tax inspection the Declaration 3-NDFL and an application for granting a property tax deduction.
6. If the car did you have in the property for three years or longer, don't try anything. Tax deduction you are entitled to automatically. However, keep certificate of vehicle registration and documents confirming the date of its sale within three years after the calendar year in which the sales were made. If tax will appear to you questions in connection with this transaction, a demonstration of the documents listed above will remove all claims to you.