Donation of Land to a Non-Relative

Everyone likes to receive gifts, especially valuable ones, such as land. But they bring not only joy, but also expenses. One of them is income tax.

Real estate (and other gifts of value) are considered income received. Therefore, tax must be paid on its value.

Further in our article we will look at what tax is on the gift of land and what are the conditions for paying it, as well as who is exempt from it.

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Do I have to pay for the donated land?

The specifics of paying personal income tax (personal income tax) are determined by Chapter 23 of the Tax Code. According to paragraph 18 of Article 217, inheritance received is not taxed, except for:

• income from works of science and art;
• rewards for inventions.

Gifts worth more than 4,000 rubles are taxed. Its size depends on what exactly is being donated.

According to Articles 224 and 225 of the Tax Code, real estate donated as a gift is taxed at a rate of 13% of the value (30% for non-residents). As you can see, calculating the amount of tax after the changes has become much easier.

Who is taxed?

According to paragraph 18.1 217 of Article 217 of the Tax Code, close relatives, which include:

• spouses;
• children, including adopted children (we talked about how to correctly register a gift deed for children here);
• parents (adoptive parents);
• brothers and sisters with whom at least one parent is common;
• grandparents;
• grandchildren.

No, you don’t need to pay, because the mother is the parent, and they are exempt from paying tax on gifted land. Other relatives (aunts, cousins, etc.) pay it on a general basis. Diplomats and members of their families also do not pay tax on land donations.

As a result of the transaction, the donee receives property, and the donor does not acquire material assets. Therefore, the person who received a valuable gift pays personal income tax.

It may happen that the tax service will require payment of tax under the land donation agreement. This happens because Rosreestr, after registering the transfer of ownership of the land, sends a notification to it. But it does not contain information whether a donation occurred or a sale (we discussed in detail the question of what is more profitable - donation or sale of a memory in a separate article).

Then you need to send an explanation. It is written in free form, a copy of the deed of gift for the land is attached to the letter, the tax must be asked to be cancelled.

For residents of Russia, the tax rate is 13%, for others – 30%. A resident is a person who has spent at least 183 days in the country in a year. That is, foreigners living in the Russian Federation for a long time pay a lower rate.

Personal income tax is calculated based on the cadastral or market value of the land. The latter can be determined based on the cost of neighboring plots.

Information about the first is contained in the certificate of cadastral value, which is obtained from Rosreestr.

In the latter case, you can choose the method of receipt:

• personally;
• by mail;
• electronic version by email;
• through MFC.

In all cases, obtaining the document is free.

When contacting the Rosreestr office, it is enough to present your passport and fill out an application, which will be issued on the spot. Moreover, information about the cadastral value is open to everyone, so the donee can receive the document even before the land is transferred to him.

After 5 working days (about 10 if the application was submitted to the MFC) the certificate will be ready. Regardless of the submission method, you will have to receive the paper version at the Rosreestr office or wait by mail.

The cost is multiplied by 0.13 and a figure is obtained, which will be the tax.

Do I need to pay tax on the gift of land?

According to the Civil Code, a deed of gift is a civil contract under which ownership rights to a land plot are alienated from the donor to the donee free of charge. The deed of gift must be drawn up in writing, since the land is an expensive property (more than 3,000 rubles).

Despite the gratuitous nature of the transaction, it is taxable. How much tax is paid on donated land and how to correctly report what is received on a donated plot to the Federal Tax Service?

Legislation

According to it, a plot of land received as a gift is the income of a citizen.

That is why, when receiving such property, it is necessary to pay tax to the budget and report on the property received.

The donor does not have to pay any taxes and file a declaration. So, if the land were transferred into the ownership of another person through a purchase and sale agreement, then it would be the donor who would be responsible for paying personal income tax. In the case of a deed of gift, he does not receive taxable income.

Tax rate in 2020

The tax on a land plot received as a donation is equal to personal income tax.

The personal income tax in Russia is the same for everyone and is 13%. There are no plans to increase the tax rate for 2020.

The tax base is the cadastral or market value of the land plot. It is not necessary to indicate the value of the land plot in the deed of gift itself, but when calculating the correctness of tax calculations, Federal Tax Service specialists usually rely on the cadastral value.

The cadastral value of land is usually as close as possible to the average market value and depends on its location and the quality parameters of the general condition of the site.

Here is an example of calculating tax on a gift:

We must not forget that after registering ownership of the plot, the donee will have to pay land tax for it. This type of tax is municipal; its rate and tax base are determined at the municipal level.

For agricultural land it does not exceed 0.3%, for the rest - 1.5% of the cadastral value.

In what cases is it not necessary to pay tax on donated land?

Gift agreements are most common among close relatives. This is due to the fact that transactions between them are not subject to taxes.

The donee is completely exempt from taxation if he has blood ties with the donor (father/mother and child, grandparents and grandchildren), collateral (brother/sister, including step-sisters) or legislative (spouses, adoptive parents, guardians).

If the donee, who had family ties with the donor, receives a request from the Federal Tax Service to pay tax, he needs to come to the tax office at his place of residence and bring documents confirming the relationship. Then the Tax Service will withdraw its demands, recognizing their illegality.

Procedure for paying tax on gift of land

If the taxpayer received a land plot as a gift, then he is obliged to pay personal income tax by July 15 of the year following the registration of the deed of gift.

It will not be possible to hide the fact of receiving property under a deed of gift: such a transaction must be registered in Rosreestr when re-registering land ownership in favor of the donee. Information from Rosreestr is received by the Federal Tax Service as part of the information exchange.

Therefore, in case of failure to submit a tax return on time and non-payment of tax, fines and penalties will be charged for each day of delay.

It is worth considering that if in the year the taxpayer received the land as a gift, he paid for his treatment or education, he has the right to reduce the tax base by these expenses.

For example:

Tax return, rules for completing and submitting it

Many Russians are already familiar with this reporting form, as it is submitted when returning expenses from the budget for the education of children, the purchase of real estate, etc.

The declaration is submitted to the Federal Tax Service at the place of residence (not at the place where the land was received) before April 30 of the year following the reporting year. So, if a deed of land was drawn up in 2020, you need to report on it in 2017.

A sample of its completion can always be found at the stands at the Federal Tax Service..

On the title page, fill in the taxpayer’s full name, address, TIN, passport details and contact information, and date of filing.

The declaration must contain information about the value of the land plot and the amount of tax that needs to be transferred. In section 1, information about the price of the plot, the tax rate is filled in, and as a result the tax amount is calculated. It is duplicated in section 6 if the taxpayer did not make expenses during the reporting period that could reduce the tax base.

The declaration is sealed with a signature on each completed sheet. It needs to be extended.

In addition to the tax return, the Federal Tax Service will need to provide the following documents:

• deed of gift (there is no requirement for its mandatory notarization);
• cadastral passport, on the basis of which the tax inspector will check the correctness of the calculation of the taxable base;
• certificate of ownership in the name of the donee;
• passport;
• TIN.

You must take 2 copies of the declaration with you to the inspection; the specialist will put a stamp on one of them with a mark of acceptance and the date of submission.

This will serve as confirmation that the taxpayer has reported within the deadlines established by law..

When submitting documents in person, you do not need to have them notarized.

Features of paying tax on a gift of land if the donor is a legal entity

Russian legislation directly prohibits the execution of land donation agreements between commercial entities. Only an individual can act as a recipient of a gift from a legal entity.

Today, large organizations often practice the transfer of ownership of a site in gratitude for dedicated work. Who pays taxes on such transactions?

For legal entities, concluding gratuitous transactions does not carry any tax consequences: neither in terms of payment of VAT nor income tax. There is no basis for their calculation.

Whereas an individual will have to declare the received plot of land in the general manner and pay a tax of 13%. There will be no benefits in this case, since family ties with a legal entity are impossible.

What is better - donation or inheritance?

Citizens often wonder what is better: transferring land by gift or drawing up a will for it.

It is worth considering that the closest relatives are the heirs of the first priority and will inherit the property of the deceased in any case, even in the absence of a will. A document expressing the last will will be required only when transferring land to legal entities or friends.

Let's try to compare the costs associated with entering into an inheritance and receiving land by gift. They will differ depending on the relatives of the participants.

Table. Comparative analysis of the costs of registering land by deed of gift (land donation tax) and through inheritance

Let us give an example of calculation for land with a cadastral value of 250,000 rubles.

We can come to the conclusion that there is no clear answer to the question of what is more profitable: a gift or an inheritance..

For immediate relatives, it will obviously be cheaper to draw up a land donation agreement. Whereas for other categories the rate of state duty for inheritance is much lower than personal income tax.

Thus, after completing the donation transaction, the party that received the land as a gift is obliged to pay personal income tax. The tax is determined taking into account the market/cadastral value of the land and a rate of 13%. If the donee is a close relative of the donor, then he does not pay tax.

Source: https://zakonguru.com/nedvizhimost/zemelnyj/darenie/nalogooblozhenie.html

Examples of personal income tax calculation

Example 1:

The plot worth 167 thousand rubles was donated to the citizen of the Russian Federation by his uncle. In this case, he must pay personal income tax at the rate of 13%. This will amount to 21 thousand 710 rubles.

Example 2:

Another plot, the cadastral value of which is 231 thousand rubles, was donated to a non-relative. The income tax rate will also be 13%. That is, you will have to pay 30 thousand 30 rubles.

Example 3:

The plot was donated to a non-citizen of the Russian Federation who spent less than 183 days in Russia in the year it was received. The cadastral value of the plot is 270 thousand rubles. He must pay 30%, that is, 81 thousand rubles.

How to pay?

If it is necessary to pay income tax on the donated land, a 3-NDFL declaration is filled out. It must be sent to the territorial branch of the Federal Tax Service no later than April 30 of the following year.

For example, if real estate was donated in 2020, the declaration must be completed by April 30, 2020.

This declaration is submitted to the tax office at the place of registration.

You can submit it:

• in person at the branch;
• by mail (by a valuable letter with a list of attachments);
• or through the Federal Tax Service website.

The declaration is filled out on site or at home on a special form. It is necessary to indicate:

1. Full name of the department to which it is submitted.
2. Full name, passport details and TIN.
3. Address and phone number.
4. Cost of the plot.
5. That it was received as a gift.
6. Information about the donor.
7. Tax amount.

The declaration can be submitted in three ways:

• personally;
• by mail;
• or on the Internet (via the website of the Federal Tax Service or State Services).

Each method has its pros and cons. If you submit the declaration personally to the inspector, he can immediately review it and point out obvious errors. On the other hand, it may require additional documents and not accept the declaration without them, without giving a written refusal.

In addition, you can send a letter from another city if you are not at your place of registration. After sending a letter, the delivery process can be tracked by number through the Russian Post website.

How to fill out a declaration for a donated plot:

If over the past year a person had other income subject to taxation, all of them are indicated in one declaration. Personal income tax is calculated for each type separately, then the amounts are added up.

After checking the declaration, the tax inspector issues permission to pay the tax and indicates the date by which this must be done.

These documents must be prepared before filling out the declaration:

1. Passport.
2. Deed of gift.
3. Certificate of cadastral value of land.
4. Certificate of ownership.

A certificate of ownership is issued by Rosreestr after registration. If lost, a duplicate can be obtained there.

Stages of filing a tax deduction

A person has the right to receive a property deduction from the Federal Tax Service or from an employer after receiving a notification from the Inspectorate about the right to a benefit in the current year. The most common option is to present the deduction on the same return as income.

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When planning to use a deduction from an employer, a package of documents and an application to receive the document are provided to the Federal Tax Service. The possibility of obtaining a deduction arises if there are several types of benefits, which entails an overpayment of tax.

Deadlines for personal income tax payment

The land deed tax must be paid by July 15 of the following year. That is, until July 15, 2020, if the plot was received in 2020. This can be done at any bank branch.

If income tax is not paid on time, penalties may be charged (1/300 of the Central Bank refinancing rate). In case of prolonged non-payment, a fine (from 20% to 40% of the cost) and seizure of property and bank accounts may be imposed.

Then you need to send a response and attach evidence of relationship. They can serve as birth, adoption, and marriage certificates. You don’t have to wait for such a requirement, but immediately send a letter to the tax authorities.

When receiving a plot of land as a gift, you will have to pay income tax. Only close relatives are exempt from it.

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A land donation agreement is a document that is almost always concluded between relatives, but there are also cases of conclusion between strangers. The article describes the difference between the two types of agreement and the process of concluding it.

General information on the deed of gift for a land plot

The donation is formalized as a gratuitous transaction, that is, when it is completed, the party who gives does not receive a profit. As a result, the transfer of property to the new owner is formalized with the re-registration of all property. An important nuance can be noted that the donation of a plot occurs only during the lifetime of the owner.

Upon conclusion of the contract, ownership is transferred instantly to the new owner. Regulation of all procedures is provided if the adjacent real estate is donated along with the house. Then you will have to pay the property rate according to the given dimensions of the real estate that was donated. The tax on donation of land at the conclusion of this transaction is 0 or 13%, depending on the relationship of the citizens.

It is also necessary to point out an essential distinctive feature of the land, as a gift from one person to another - its complete indivisibility. That is, this fact means that receiving a plot under this agreement gives it the exclusive right of ownership; on the part of the recipient, it will be impossible to take away the plot through the court using any documents.

The law establishes restrictions on those who cannot be the donor of a plot:

• persons of minor age;
• people who are unable to adequately perceive the situation;
• citizens who do not have legal rights to land;
• officials in government agencies;
• workers of social and medical services, in the case of the object of donation in the person of wards.

Legal entities are also prohibited from making real estate donations. But there are exceptions, in the event that the company acts on the side of the citizen in the process of concluding an agreement. In case of receiving a plot from an organization or individual entrepreneur, a timely payment of 13% of the personal income tax rate is also required.

The law establishes that if the gift amount is less than 4,000 rubles, there is no tax payment, but this point does not apply to plots because of their higher value. Also, when filing the appropriate declaration, it is possible for the donor to withhold tax, but for this it is necessary to draw up a 3-NDFL declaration.

Combining several types of deductions in one period

Benefits in the form of income tax reduction are provided depending on the emergence of the right to receive them. Deductions are applied within the limits of the income received and the limits on the maximum amount established for each type.

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Resident of the Russian Federation Nikolaev V.V. received an apartment in 2020 from a person not closely related to him. The value of residential property under the contract was absent and was accepted for tax purposes according to cadastre data in the amount of 2,800,000 rubles. The amount was reflected in the declaration submitted in 2016.

1. The amount of the taxable base was determined: D = 2,800,000,225,000 = 3,025,000 rubles;
2. We determined whether the taxpayer has the right to a deduction and determined the amount of the benefit: B = 2,000,000 120,000 = 2,120,000 rubles;
3. Provided tax benefits: C = 3,025,000 – 2,120,000 = 905,000 rubles;
4. We determined the amount to be paid to the budget: N = 905,000 x 13% = 117,650 rubles.
5. Conclusion: The taxpayer applied the property deduction in full and the social deduction within the limit established by law.

Differences in types of gift agreement

Payment of the tax rate on a gift transaction is provided only if the parties to its conclusion do not have family ties. As for taxation when donating a land plot, the standard tax applies here, that is, 13%.

So the Tax Service adopted changes in 2006, according to which the tax is taken only from strangers with the status of the donee. It should be clarified that the procedure for executing a transaction in both cases, both for an agreement with relatives and with strangers, is completely identical.

When making a transaction of this kind with relatives, the state provides a benefit that provides exemption from paying the personal income tax rate. Now let’s look at who is the donor’s relative in this case:

• children, both natural and adopted;
• parents;
• blood relatives on the paternal and maternal lines of the parents of the donor of the plot;
• sisters and brothers of the donor by blood line;
• husband or wife.

Among other things, it is possible to give a gift to a minor child, but this case requires acceptance of the gift by the responsible party:

• father or mother of the child;
• the child's guardian;
• guardianship and trusteeship authorities under whose supervision the child is.

At the age of 14, a child has the right to sign a personal liability agreement in connection with the receipt of a passport identification card. Then the document contains a column indicating the signature of the person responsible for the child. This document states that the actual owner of the plot until the gifted person comes of age is his guardian, but in this case he is not allowed to take any legal actions.

Such measures are inherently a means of storing them for a while in order to retrieve them later. After reaching the age of majority, he has the right to carry out all operations with his plot.

Now let's decide on the tax on donated land. A report to the tax payment regulation service is submitted by the recipient in a situation where he is a stranger to the donor.

There is also a case when the tax service accidentally sends a document for payment, but the agreement was concluded between relatives. Then you need to submit documents confirming your family relationship to the tax service.

The following approved algorithm applies when the parties to the agreement are not listed as relatives:

1. Submit an appeal to the tax service in whose jurisdiction the client is located.
2. Submission of the corresponding declaration before the beginning of May of the following year after the donation procedure.
3. Next, a declaration is received from the tax service, and the citizen is obligated to pay tax until the end of July of the given year.

If the recipient does not have resident status, you will have to pay 30% as income tax instead of the standard rate.

Residence is quite easy to obtain; you just need to live in the Russian Federation for more than 200 days a year. The gift tax for a land plot is calculated in the declaration itself according to the cadastral data regarding the plot indicated in it.

For a significant discrepancy in the value of the tax, an additional fine is imposed on the citizen, for violating the law and submitting incorrect information.

Local authorities in the area where the transaction was concluded in this case estimate its value according to the cadastre. So they are obliged to accurately assess the value and its discrepancy from the market value, which cannot be more than a fifth of the average at the place where the land donation agreement was concluded.

Taxation on gifts

- the recipient of the apartment is obliged to pay income at the market value of housing in the amount of 13%;

- the recipient is obliged to submit to the Tax Inspectorate (FTS) a declaration in Form 3-NDFL, which will reflect the income.

We can conclude that a person who has received an apartment or other living space as a gift is obliged to pay 13% of the cost of the housing received to the budget of the Russian Federation. Those. The recipient party has no privileges in a gift transaction, but only an obligation to the state; a gift agreement between close relatives exempts them from paying tax.

So, we found out that, according to Article 228 of the Tax Code of the Russian Federation, namely paragraphs 7, 1 and 2, non-relative donees must pay gift tax after signing the deed of gift and registering the ownership right.

Each citizen must handle tax calculations and payments independently. In case of non-payment, penalties established by current legislation may be applied.

Today, tax rates when concluding a gift agreement are:

• 13% – for residents of Russia;
• 30% – for non-residents of the Russian Federation.

Citizens who live in Russia for more than 183 days are recognized as residents of the state.

At the same time, not only Russians, but also citizens of other states can act as residents! This category may also include stateless persons who live in the Russian Federation, as well as persons who have a residence permit in the country.

As you can see, even our compatriots who live abroad most of the time will be considered non-residents of the Russian Federation.

With regard to the amount of tax on gifted real estate, the legislation today provides for several important rules that every donee needs to know. So:

1. the tax is charged on the total market value of the property;
2. in the case of a gift, a tax deduction is not provided for a non-relative;
3. persons using social benefits under other types of taxation are required to pay the gift tax in full;

It is worth noting that the Tax Code of the Russian Federation does not specify a package of documents that are taken as the basis for determining the actual value of gifted property for calculating tax.

The best option for a non-relative would be to pay tax on the market value of the apartment. This approach will help avoid litigation and accrual of arrears.

Documents required when paying tax

When concluding an agreement, the following documents are sent to the tax service:

1. The agreement under which the land was donated. The document guarantees the acceptance of the required cadastral value of the received gift.
2. A cadastral passport of the plot is provided. This document in the form of an extract can be ordered from the state real estate register; the cadastre will be verified in accordance with the legal framework.
3. A certificate of re-registration of property, which is issued when a transfer has taken place from one owner to another.
4. The completed document indicating the exact amount that must be paid to the citizen is submitted to the Tax Service for detailed verification.

After the donation, if it occurred between strangers, a declaration must be filed.

In this case, the filing must occur strictly before the end of April of the year when the transfer of ownership to another citizen occurred; the regulation of the issue is described in Article 221 of the Tax Code of the Russian Federation. So, if the donation agreement is not submitted or the tax is not paid on time, sanctions are imposed.

Termination of such an agreement is a complex process, and if there is no consent of the recipient party, you will have to go to court. Receiving as a gift not only a plot, but also property, requires payment of property tax.

Usually, when filing an application, the court, if there are compelling reasons, almost always makes a decision in favor of the donor of the plot.

Tax calculation and payment

Tax payment is required when concluding a gift agreement between strangers. For correct payment, a 3-NDFL declaration is drawn up:

1. The first page contains information about the payer, such as full name, passport details, registered place of residence of the citizen.
2. Then a simple tax calculation occurs, that is, the amount of the cost of the site is multiplied by the tax rate, which can be 30 and 13%. The indicators are contained in columns 1 and 2 of section 1.

Tax calculation example:

1. The cost of the plot is 55,000 rubles, then the tax for a citizen of the Russian Federation will be 55,000 × 13% = 7,150 rubles.
2. In the second case, for a non-resident 55,000 × 30% = 16,500 rubles.

The declaration is submitted no later than April 30 of the year of the transaction. Payment of the tax must take place no later than July of the same year. For payment to the Tax Code, the documents described above are provided.

How to draw up a deed of donation of a dacha?

To formalize a dacha donation agreement, the parties have two ways:

• do it yourself and draw up an agreement in simple written form;
• contact a notary.

Each method has its pros and cons. To understand how best to proceed in the specific case of registering a deed of gift for a dacha, let’s consider both options.

A donation agreement for any property can be drawn up in simple written form. So the deed of gift for a dacha can be drawn up by the parties independently. To do this, you can familiarize yourself with the standard form of the document. The mandatory clauses that the parties must include in the dacha donation agreement are:

• data of the donor and recipient. For each of them, you must indicate your full name, residential address, and passport details;
• information about the subject of the donation. It is necessary to indicate the address or location of the dacha, area, number of floors, characteristics of the plot of land on which it is located. The absence of correct and comprehensive information about the subject of the gift makes the contract automatically void;
• date of transfer of the gift, if it is not planned immediately. A gift deed may contain a promise to transfer the gift in the future;
• signatures of the donee and the donor.

In order to ensure that all the characteristics of the property and the data of the parties to the transaction are indicated correctly, it is necessary to prepare the following documents in advance:

• technical passport of the dacha;
• cadastral plan of the land on which it stands;
• passports of the donor and recipient;
• certificate of state registration of the donor's right to the dacha;
• a document of title according to which the dacha is the property of the donor.

The correspondence of the data specified in the documents and the gift agreement is the key to the correct preparation of the deed of gift.

After signing the donation agreement for the dacha, it is necessary to register the ownership. To do this you need:

1. Contact the registration authority at the location of the dacha.
2. Write an application for registration and submit documents. Upon receipt of the papers, an employee of the registration authority will issue a receipt and inform you of the date of application for the completed certificate.
3. Pay the state fee for registration.
4. On the appointed day, submit a receipt to the registration authority and receive a certificate and documents submitted there.

The donee is required to pay tax on income received as a result of a gift at a rate of 13% of the cost of the dacha. If the donee is a close relative of the donor, then he is completely exempt from paying tax.

If the parties decide to draw up a dacha donation agreement with a notary, then they have this right.

The notarized form of the deed of gift is not required, but is possible, since it is not prohibited by law. The parties apply for its registration in order to:

• eliminating errors in document preparation;
• certification by a notary as a guarantee of the correctness of the deed of gift;
• reducing the grounds for challenging a gift agreement.

The notary draws up the contract independently. To do this, he will need documents for the dacha and identity cards of the parties to the transaction. The notary also carries out state registration of rights independently. As a result, in the process of drawing up a gift agreement by a notary, additional costs will be required from the parties:

• payment for specialist services. For assistance in drawing up an agreement, the notary charges a separate fee;
• state fee for notarization of the gift agreement;
• state fee for registration of rights, which is paid to the notary, and he already pays it to the registering authority;
• tax on income received from a gift, if the parties to the agreement are not close relatives of each other.

Obviously, the cost of registering a deed of gift from a notary will significantly exceed a self-executed agreement.

Tax on gift of land to non-relatives and relatives

Any property can be the subject of a donation. This includes land. It should be remembered that the law provides for a tax on the gift of land.

Land plot as a gift

A plot of land is the same real estate object as any building. The only difference is in the purpose.

The territory can be used not only for construction, but also for agricultural activities. The procedure for donating to other persons in this case is carried out according to general rules.

First of all, the parties must have documents on hand that confirm their legal capacity to enter into transactions. For the donee, this is a passport.

If such person is an incapacitated or minor person, then confirmation of the competence of the legal representative will be required. In turn, for the donor the list of documents is much larger.

In addition to the passport or power of attorney of the legal representative, other data must be provided. First of all, this is a document confirming the owner’s legal capacity to make transactions with property.

This may include a certificate of ownership, an agreement of exchange, gift or sale, an extract from the Unified State Register, a cadastral passport. The recipient also needs to request a certificate of absence of debt for the maintenance of property and other encumbrances.

After this, the parties negotiate and determine the terms of the transaction. The result is fixed in the contract.

The document must include the following information:

1. Date and place of detention.
2. Information about the parties to the transaction.
3. Subject of the agreement. In this case, this will be a description of the land plot - its area and location.
4. Rights, obligations and responsibilities of the parties.
5. Paintings and details of the parties.

The contract can be drawn up independently or with the help of a qualified specialist. It should be noted that if the deed of gift concerns part of the land plot, then notarization is a prerequisite.

After signing the agreement, it must be registered with Rosreestr. This also applies to ownership of land.

To do this, you will need to draw up an application with the appropriate content and send it to the registration authority.

The text of the appeal must indicate:

1. Name and address of the Rosreestr authority.
2. Information about the initiator - name, where he lives, contact phone number.
3. Information about the donated property - type, purpose, location, volume, grounds for transfer, that is, a gift agreement.
4. Request for state registration.
5. List of attached documentation.
6. Date of application and signature of the applicant.

The signature of the applicant must be placed on the document. Otherwise, the application will not be valid.

The application is accompanied by the initiator’s passport, an agreement in three copies, as well as a receipt for payment of the state fee. The cost of the service for an individual will be three hundred and fifty rubles.

This amount is specified in Article 333.33 of the Tax Code of the Russian Federation. Information can be submitted in person, sent by mail, online, through the MFC or an authorized representative.

The deadline for fulfilling the requirements is seven working days, and if the information was sent through the MFC - nine.

Taxation

Property transactions are mostly taxable. That is, participants must pay a certain amount of money. Its size is calculated based on the total value of the property, taking into account the rules established by the Tax Code of the Russian Federation. This condition is mandatory. You will need a receipt for payment later when filing your tax return.

In what cases is there no tax?

Article 217 of the Tax Code of the Russian Federation specifies cases when tax is not paid. However, clause 18.1 determines that tax is not paid if the issue concerns the gift of property.

At the same time, it depends on the type of material assets being transferred. This rule does not apply to real estate, vehicles, shares, stocks.

That is, in case of donation of a land plot, it will be necessary to pay tax.

Consular employees and members of their families are also exempt from payments if they are recipients of a gift.

Circle of close relatives

The Tax Code of the Russian Federation also defined categories of persons who are not required to pay a percentage of the transaction. In this case, we are talking about close kinship between the parties to the agreement. These include spouses (husband and wife), parents, sons and daughters, both natural and adopted, grandparents and grandchildren, brothers and sisters, including only one parent each, that is, not full-blooded.

Tax rate

The amount of tax depends on the total value of the property, since in this case a percentage of the specified amount is taken. At the same time, the amount of income tax for residents of Russia, that is, those who resided in the country for more than one hundred and eighty days a year, will be 13% of the value of the gift, for non-residents - 30%.

Calculation of the amount

Calculating the tax amount is quite simple. It is necessary to determine the cost of the entire site as a whole. After this, the result obtained is taken as one hundred percent. The amount of payment is calculated from this amount. The final result will depend on the status of the payer. If he is a resident of the Russian Federation, he must pay 13 percent; if not, 30 percent.

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.

Filing a tax return

In accordance with the requirements of the current law, in case of receiving a gift, it is necessary to send a declaration to the tax authority.

However, this rule applies only to stocks, shares, interests, vehicles and real estate. A declaration is not sent for other gifts.

The document is filled out in Form 3-NDFL based on available income documents. In the case of donating a land plot, this will be a tax payment receipt.

The tax return consists of the following parts:

1. Title page. All information about the payer himself is reflected here - his name, where he lives, passport details.
2. A section that specifies the amount of tax that must be paid, its calculation and classification.
3. An application that contains data decryption.

The tax return must be completed using the standard form only. You cannot use regular office paper in this case. The document can be prepared in two ways: on paper and electronically. The responsibility for sending the declaration rests with the taxpayer. There are several ways to do this.

The most common of these is personal presentation. This option involves self-reporting to the tax authority. This method is most convenient for those who do not know how to prepare a declaration. In this case, a person can be provided with assistance in drawing up a declaration by specialists from the tax authority.

It should be noted that the legislation does not prohibit the mailing of information. In this case, it would be correct to send the letter by registered mail, with notification of delivery to the addressee.

An inventory indicating the list of documents to be sent must be attached to the application. This option is used extremely rarely, since it eliminates the possibility of correcting errors immediately.

In this case, a person cannot turn to tax specialists for help.

Another option is electronic filing of information. This method involves registering on a special website of the tax authority. That is, you need to create a personal account on an information resource.

In this case, a person gets rid of the need to appear in person and can fill out a declaration without leaving home. To do this, it will be enough to fill out a special electronic form and send it via the Internet to the tax authority.

In terms of its content, it is a 3-NDFL document.

The payer may entrust the transfer of data to an authorized person. This option is not prohibited by law. The legal representative will have to have a power of attorney, which confirms his right to perform actions of this nature.

The tax return must be submitted within the deadline established by law.

Violation will entail the application of sanctions to the unscrupulous payer, which are expressed in the form of a monetary fine. According to the requirements of the Tax Code of the Russian Federation, its amount can range from one thousand rubles to thirty percent of the unpaid tax amount.

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.

Deadlines

The current legislation defines deadlines regarding tax payments. They can be divided into two types. The first is to contact the tax authority, the second is to deposit the calculated amounts of money.

Appeals to the tax office

If a land plot is received as a gift, the recipient is obliged to contact the Federal Tax Service and provide the necessary declaration before the third of May of the year following the year the gift was received. For transactions of this nature, separate deadlines are provided.

Tax payment

Submitting data within the prescribed period does not mean that the tax must be paid immediately.

A person has some time to make the required cash payments. The tax must be paid no later than the sixteenth of July of the year following the reporting year.

You can deposit the amount in several ways.

The first is self-payment. In this case, a person personally comes to the bank branch along with his passport and deposits the required amount. In return he will receive a receipt.

The second option is remote. In this case, a person uses information resources on the Internet. Here we are talking about the State Services portal. To do this, you need to register on the site, that is, create your personal account and activate your account.

After this, you can make various payments related to government services, including taxes. The person will receive a notification about the successful completion of the operation, which will serve as confirmation of payment of the tax.

The specified message is saved in the transaction history.

Sample documents

Sample land donation agreement

Sample application for registration of ownership rights Sample cadastral passport for a land plot

Sample certificate of ownership

Source: https://pravo.estate/nalogi/na-darenie-zemelnogo/

Gift deed for a dacha between close relatives

A deed of gift for a dacha between close relatives is drawn up according to general rules. No specific features arise due to the fact that the parties are close relatives of each other. If it is certified by a notary, then the state fee for certification is paid at a reduced rate. In addition, there is no tax on gifts between close relatives.

Thus, the agreement for donating a dacha can be drawn up in simple written form by the parties to the transaction or certified by a notary. The costs of compiling it will always vary. After registration, the deed of gift for the dacha is presented together with other documents to register ownership. Tax is not paid only in case of transfer of a gift in favor of a close relative.

Donating real estate to relatives: what are the differences?

Let us immediately note that in relation to real estate, a deed of gift is one of the types of transactions in which the owner of the property transfers ownership of it free of charge to the donee at the time of signing and registering the agreement or at a certain time, which must be indicated in the contents agreement.

Thus, the legislator recognizes as income the benefit that the recipient received without spending his own funds on the object. Simply put, a person receives the desired property without allocating money for it and thus saving his money, saving it for future spending.

After registering the donated apartment or house in the Unified State Register of Real Estate and obtaining ownership rights, the new owner, in accordance with Article 217 of the Tax Code of the Russian Federation, namely, paragraph 18.1, does not have to pay the established tax only in 2 cases:

1. The gift agreement was concluded between persons who are classified as close relatives or family members.
2. Consular employees and members of their families are not subject to tax (according to the terms of the Vienna Convention on Diplomatic and Consular Relations).

All other new property owners will have to pay tax.

The first question of people who are offered to receive an apartment, house, garage, dacha or any other real estate as a gift, whether from strangers or acquaintances, is whether it is necessary to pay tax to a non-relative who received an apartment as a gift {q} As we have already mentioned, a deed of gift for such the object creates an obligation for the recipient individual to pay income on profit, after which the person receives ownership upon registration and can dispose of the gift at his own discretion (donate, sell, etc.).

In 2020, there are still no benefits for the payment of this tax by non-relatives. At the same time, very often unscrupulous citizens try to reduce the actual amount of taxation by covering up the gift purchase and sale transaction, allowing them to receive a tax deduction from the purchased real estate. But, if such a fact is disclosed, the transaction is considered void.

But who definitely doesn’t need to worry about taxes when accepting real estate as a gift is the relatives of the donor! But, in order for this condition to apply to the parties to the transaction, both the donor and the donee must be included in the category of close relatives, the list of which is established in the Family Code of the Russian Federation, namely in Article 3.

According to the norms established there, the following are exempt from tax on a donated apartment:

• grandparents, and grandchildren;
• brothers, sisters (both full and half-blood);
• adopted and natural children, as well as their parents.

Other relatives (uncles, aunts, as well as cousins ​​and brothers) are required to pay income tax, equal to non-relatives.

At the same time, although a close relative does not pay tax and does not fill out the corresponding 3-NDFL declaration, but, according to the norms of the Tax Code of the Russian Federation, he is obliged to pay property tax on the property received as a gift.

We invite you to read: When is the next tax amnesty