Spouse's consent to donate a car

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 2021

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.

How to give a car to your daughter?

Many parents give their children expensive gifts, including cars. To prevent someone else from taking advantage of your daughter’s right to use and own a car, it is advisable not just to purchase a car for her and draw up documents in her name, but to draw up a gift agreement in her name.

The document must clearly indicate what exactly is being given, who is accepting the gift, and under what conditions, if any. It is important to understand that it is not always possible to demand back the donated property. This is both an advantage and a disadvantage. Since the daughter is a close relative, she does not need to pay tax.

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.

Giving a car to a minor

Parents and other relatives have the right to give a car to a minor. But he still won’t be able to use it, but no one forbids accepting the car as a gift.

If the donor is a grandmother, grandfather, aunt or uncle, then the minor's parents or guardians will accept the property as a gift instead.

True, they will be able to dispose of the car in terms of selling or renting only with restrictions (before selling or renting, they will have to ask for the child’s written permission and notify the guardianship authorities), the owner will still be the child.

At the same time, if the deed of gift is drawn up for a minor, then it is possible to discuss the conditions, the fulfillment of which will lead to the receipt of the gift. Thus, the document indicates that a minor will be able to use the car, for example, after finishing 11th grade, university, or marriage.

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. The calculation and payment of tax 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, except for the 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.

In what case do you not need to pay income tax?

Transfer and Acceptance Certificate

When donating a vehicle, it is not necessary to draw up this paper. But it will indicate that the car was transferred to the donor in good condition and he has no claims against the benefactor. Therefore, it is better to play it safe and draw up the document. The transfer deed indicates:

the name of the car, its model and other identification features;
how much does the donated item cost?
where is the car located?
how it will be transmitted to the new owner;
within what time frame the right to the vehicle will be transferred to the grantee;
the presence of deficiencies in the vehicle that can reduce the safety of its use;
a mandatory point that there are no claims to the subject of the donation;
date of preparation of the paper and signatures of the participants.

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 find a car donation agreement in the form of a pdf file here.

Car donation agreement form

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.

Donation agreement for a third party

You can give a car to a person who is not related to the donor. When drawing up a contract, we are guided by Art. 572 of the Civil Code of the Russian Federation.

If the gift is transferred immediately, the transaction is concluded orally, but if the property is only promised to be transferred as a gift in the presence of certain circumstances, then the written form of its conclusion, especially between strangers, is mandatory.

It is best to sign the deed of gift form and negotiate the terms of its preparation in the presence of a notary. Particular importance is also attached to the order in which the gift is received.

Thus, the donor can note that the car will become the property of the new owner only after he performs certain actions (help with work, refusal of something important for the donor).

If the transaction is concluded between strangers, then in addition to the notary’s services, you will also have to pay 13% of its value, i.e. car prices. So, if a car, for example, costs 2 thousand dollars, then approximately 220-230 dollars will have to be paid as tax.

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:

Sample deed of gift

When is it impossible to draw up a gift deed?

The transaction cannot be completed if:

the car does not belong to the donor (he took it on credit, rented it or already sold it, but did not have time to draw up documents for the new owner);
the donor is a minor (it is impossible to donate property belonging to a child not only without his written consent, but also without the consent of parents, guardians, and guardianship authorities).

Any restrictions imposed on the property (seizure, pledge) are also an obstacle to concluding a transaction.

How to issue a deed of gift for a car in 2021?

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.

Motives for registering a donation

A car given to a spouse, say, by his parent, will not become the subject of division during a divorce and the bailiffs will not be able to confiscate it if the spouse has large overdue debts. Of course, if they do not have a marriage contract, which states that any property received, including gifted or inherited, will be included in the category of jointly acquired property. The husband and wife themselves can give each other a car, so that if something happens, they definitely won’t share it. A deed of gift for a car is beneficial when, for various reasons, they do not want to leave the vehicle as an inheritance. In addition, donation is possible only during life, and the benefactor will personally make sure that the car fell into exactly the hands into which he wished to transfer it. After death, you won’t know, you never know how the property will be disposed of, because the will can be challenged.

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?

No one forces the parties to the agreement to have the donation certified by a notary. There is a desire not to bother with the legal subtleties of registration and extra money - please. Notaries also need to earn their red caviar.

But why significantly overpay the intermediary when it is cheaper and faster to complete the matter yourself? You can check the cleanliness of the car using the public databases of the State Traffic Safety Inspectorate, the Ministry of Internal Affairs and credit institutions on the traffic police website without leaving home, draw up a donation using the sample, sign it and drive up with the documents to the MREO without the accompaniment of a notary clerk.

Valuation of a car received under a gift agreement for sale

A donated and registered vehicle will need to be appraised before sale. Several options are available:

Contact an official dealer or conduct an assessment by specialists at the car dealership.
Evaluate without involving appraisers, by comparing prices for a similar car on thematic websites. Some automotive websites even have valuation calculators, where after entering all the parameters of the car you can get an approximate cost.
Set your own price.

Independent professional experts will evaluate the car most adequately, but their services will cost several thousand rubles.

What tax will you have to pay?

Why is it recommended to give a car only to a close relative? No, the point is not only and not so much that such an expensive gift can embarrass a less close person. Taxes.

Only when a deed of gift for a car is issued by close relatives will you not have to pay tax, but in other cases it will be 13% of the transaction amount. It's a lot.

Think about it for yourself: for example, a car costs two hundred thousand rubles, which means that you will have to give 26 thousand to the country’s treasury.

Moreover, this responsibility falls on the shoulders of the recipient of the car - does he need it, such a “gift”? When selling, the amount of tribute to the state is much less and the seller is obliged to pay it. That's why, if you are at least cousins to each other, it is better to draw up a purchase and sale agreement.

We invite you to read: Court decision. Errors in the decisions of district courts. 10 requirements for a court decision. || What is a judge guided by when making a decision in a civil case?

Donating a car or bequeathing it: pros and cons

The advantages that a donation agreement for a car provides under the Civil Code of the Russian Federation:

It is not difficult to draw up the document;
it is not necessary to notarize;
ownership of the car passes to the new owner quickly;
the recipient does not owe anything and does not owe anything to the donor;
a deed of gift drawn up in accordance with the law is almost impossible to challenge.

Disadvantages of a car donation agreement between loved ones:

the donee, who is not related by blood to the donor, pays tax;
it is difficult to challenge the deed of gift;
the donor completely loses the right to the donated car.

Positive aspects of the will:

the testator owns the bequeathed car until his death;
he can change or cancel the terms of the will, or even the entire will;
heirs do not pay taxes on a car received under a will.

Negative aspects of the will:

heirs have to wait a long time for the bequeathed car;
the obligatory share of other heirs can reduce the rights of the recipient under the will, for example, when the testator has nothing else to leave besides a car.