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Is it possible to transfer a car without drawing up a deed of gift?

The donation procedure means that one person wants to give another a gift. According to the law, there is no need to draw up a deed of gift for a car. Documentary registration of transactions is necessary when donating real estate or vehicles. The new owner will need a written gift agreement, since he will need to re-register the car in his name (clause 15.5 of the vehicle registration regulations), and the document will also be useful in case of litigation (it is almost impossible to challenge a gift deed in court).

The agreement will relieve the donor from paying income tax (Article 217 of the Tax Code of the Russian Federation). The rules on an imaginary transaction specified in paragraph 2 of Art. 170 Civil Code of the Russian Federation.

Who manages the property?

Dispose of property in accordance with Art. 209 of the Civil Code of the Russian Federation, only the owner of the car has the right. In addition, he must be of legal age and capable. Also, the donor must be mentally healthy and sober. If it turns out that the donor was drunk or took pills before donating the car and did not understand what he was doing, the deed of gift may be cancelled.

Who is not forbidden to give the car?

The car can be given as a gift to a close relative: parents, children, grandparents or grandchildren, spouse, a friend, or even a stranger, the main thing is to write everything down in detail in the contract. The design of deeds of gift for relatives and strangers will vary.

Is it possible to issue a deed of gift without notarization?

The deed of gift does not have to be notarized. Specialists are contacted only for the legal purity of the donation procedure and the correct execution of documents. A notary can not only certify a gift agreement, but also draw it up. Both services are paid.

When is an assessment required?

The car needs to be appraised only if the donor will have the deed of gift certified by a notary, since the state duty is calculated as a percentage of the market value of the car (Federal Law No. 135 “On Valuation Activities”). For the assessment procedure, you will need all the documents for the car, as well as information about the operation of the car (whether it was involved in an accident, what parts were replaced, etc.).

Sample and form of car donation agreement

It is not difficult to draw up a form for a car gift agreement between relatives and without special knowledge. However, it is better to work according to an already completed sample, using donation forms that comply with legal norms. View a sample deed of gift. View the vehicle donation agreement, 2020 form in pdf format:

• without a notary;
• with a notary.

Documents for the procedure

There is no standard package of documents for the donation procedure, but the gift agreement must indicate information about the parties to the transaction and about the object. To do this, you will need the passports of those who give and accept the gift, and documents for the car (PTS and registration certificate, insurance policy and a certificate confirming that the car has no encumbrances).

What serves as proof of ownership?

A deed of gift is not only the basis for taking ownership of a car, but also a document that must be presented to government agencies. Therefore, documents that can confirm ownership are useful:

• vehicle registration certificate;
• vehicle registration certificate;
• purchase and sale agreement concluded between the previous owner and the donor;
• passport;
• a certificate from the Register of Pledges confirming the absence of an encumbrance;
• act on the estimated value of the car.

Do you need your spouse's consent?

If the husband and wife do not have a prenuptial agreement, property acquired during marriage is considered the joint property of both spouses, and it does not matter to whom it is registered.

According to Art. 35 of the Family Code of the Russian Federation, spouses can use and dispose of common property by mutual consent. If one of the spouses makes any transactions with property, it is assumed that he acts with the consent of the second spouse. When donating a car, the documentary consent of the second spouse is not necessary (Clause 3 of Article 35 of the RF IC). Some formalize consent for the gift of the husband and wife and have it notarized; the document can only be useful in the event of legal proceedings.

Agreement and acceptance certificate

There is no standard car donation agreement; it is drawn up at your own discretion. The main thing is to indicate:

1. all data about the parties and the vehicle;
2. under what conditions the car is given as a gift;
3. car cost;
4. date of transfer of the car.

If the contract is certified by a notary, the agreement also needs to specify who will pay for the specialist’s services.

The law does not require drawing up an act of acceptance and transfer to the gift agreement. But it may be needed to confirm the fact of the car being donated; it records the date of transfer and the presence or absence of complaints about the condition of the car. The acceptance certificate confirms that the current condition of the car suits the recipient of the gift, this will reduce the likelihood of future legal disputes.

How to re-register a vehicle: step-by-step instructions

1. First, the donor must communicate his intention to the person to whom he is going to give the car.
2. Then prepare the documents, discuss the specifics of the procedure and draw up an agreement.
3. After which the new owner registers ownership of the car with the traffic police and receives title documents.

The gift agreement will no longer be needed, but it is recommended that both parties keep it. When the tax office sends a notification about the accrual of tax on the car, you can use the deed of gift to check for what period it was calculated.

Vehicle registration

Anyone who received a car as a gift must register ownership of the car with the traffic police within 10 days from the date of signing the deed of gift. Otherwise, the new owner may be fined.

Documents for registering a car under a gift agreement with the State Traffic Inspectorate:

• passport;
• original deed of gift;
• confirmation of relationship (if the donor is a relative);
• PTS;
• vehicle insurance;
• receipt of payment of state duty;
• statement.

Traffic police officers must register the car on the day the documents are submitted. The procedure will take no more than three hours. It happens that the new owner of the car has not re-registered the car in his name, but the fine and transport tax continue to be paid to the previous owner of the car. In this case, the donor can deregister the car based on the donation agreement.

State fees and expenses for notary services

There is always a fee for contacting a notary. How much it costs to issue a deed of gift for a car depends on the value of the vehicle, as well as on the family ties of the giver and recipient of the gift (Part 2 of Article 22.1 of the Fundamentals of Notaries, Article 333.33 of the Tax Code).

According to paragraphs. 2 p. 1 art. 22.1 The basis defines the notary tariff for certifying the donation of movable property:

• if there is a relationship between the parties to the donation - 0.3% of the cost, but not less than 200 rubles;
• in the absence of relationship - 1%, but not less than 300 rubles.

If the notary himself draws up a gift agreement, this will also have to be paid. Prices for such a service vary in regions. The cost of a deed of gift for a car in Moscow is about 5 thousand rubles. If this family lived in Novosibirsk, they would pay more for everything; the service of drawing up a deed of gift costs 6,100 rubles there, and 9,500 rubles in Magadan. In some regions, you can draw up a deed of gift cheaper: in Rostov-on-Don - for 4,500 rubles, in Samara - for 4,400 rubles, in Lipetsk - for 4,100 rubles.

You can draw up a contract yourself and not pay anything for it. But the notary will not correct errors in the contract.

The lower the value of the donated car, the less it will cost to register a deed of gift with a notary.

Registration of a car received through the donation procedure

Within ten days after the deal is concluded, the car must be registered with the traffic police.

To carry out the procedure, its new owner must provide:

• relevant statement;
• passport or other identity document;
• deed of gift;
• a receipt confirming payment of the state fee;
• MTPL insurance policy;
• documents confirming family ties between the donor and the donee (if the parties to the transaction are relatives).

A citizen who has received a car free of charge must submit a corresponding declaration to the tax police .

Taxation

Whether the tax is paid on a car transferred into ownership by gift or not depends on the degree of closeness of family ties, as stated in clause 18.1 of Art. 217 Tax Code of the Russian Federation. If a father gives a car to his daughter, no tax is paid. And if an uncle gives it to a niece, or the recipient of the gift is a stranger. you need to pay 13%. The tax must be transferred to the budget next year after the year of receiving the car as a gift.

The new owner will have to pay tax when selling the donated car to another person if he has used it for less than three years.

Questions and answers

The procedure for donating a vehicle usually does not take much time, but it has its own characteristics and controversial issues.

1. Is it possible to give a car to a minor child? Can. The structure of the deed of gift will not differ from a similar document for an adult. If a car is given to a child under 14 years of age, the agreement is signed on his behalf by his legal representative.
2. Are there any differences when gifting to a relative, spouse, or friends? Giving gifts to close relatives - children, spouses, parents, grandchildren, brothers and sisters - is more profitable than to strangers: the amount of state duty when certifying an agreement with a notary will be less. Also, for transactions between relatives, you do not need to pay tax on the gift of a car.
3. Is it possible to obtain documents abroad? Documents are processed only in Russia. If the donor is a foreigner, or the person cannot come from abroad to complete the transaction, he entrusts his authorized representative to carry out the donation procedure. The power of attorney must be certified by a notary.
4. How to draw up a donation agreement for a car without title? Without ownership of the car, only the donor's authorized representative can participate in the donation procedure. Other cases of participation of persons who do not have the right to own a vehicle in such transactions are prohibited.
5. Is it possible to give a gift if the car was purchased on credit? The rights to a car purchased on credit are limited: it is prohibited to sell, exchange or give it away. You can donate a vehicle only after repaying the loan debt.
6. Is it possible to give a gift after entering into an inheritance? If a person has inherited a car, he can legally register ownership, and therefore, he can dispose of his possession as he pleases. Including giving as a gift only after receiving a certificate of inheritance.
7. Who can challenge a transaction and within what time frame? You can challenge the transaction within three years from the date of signing the gift agreement. The deed of gift can be challenged by any of the parties to the transaction for various reasons:
   The contract was filled out with errors.
8. The other owner of the car did not consent to the donation.
9. The car was bought on credit and this fact was hidden from the recipient of the gift.
10. The giver or recipient of the gift is incapacitated or mentally ill.
11. The document was drawn up under pressure.
12. Is it possible to donate a part (share) of a car? You can donate a share of a car if other vehicle owners agree to this and the terms of the donation are described in detail in the agreement. Donating a share only means the right to own it, since it is physically impossible to divide the car into parts.
13. Do I need to deregister a car when giving it as a gift? Deregistration of a car occurs simultaneously with its registration to the new owner after the transfer of the car.

What tax must be paid if the parties to the transaction are not related?

If the owner of the car is not your relative, then you will have to report to the tax office, namely, file a tax return for the next year and pay a tax in the amount of 13% of the value of the gift.

Article 217 of the Tax Code of the Russian Federation directly states that a gift transaction is not subject to taxation if it is made between close relatives.

To avoid misunderstandings of the concepts of close relatives, you should refer to the Family Code of the Russian Federation.

These are:

• spouses;
• grandmothers (grandfathers) regarding grandchildren and granddaughters;
• parents and their children;
• sisters and brothers, including those who have only one common parent (mother or father).

Therefore, if a person makes a gift of a vehicle to his wife, husband, son or daughter, then such a transaction is completely exempt from taxation.

The nuances of giving a car to a child who has not yet reached the age of 18 are as follows.

• if the son or daughter is not even 14 years old, then only his representatives (one of the parents or a guardian) can be the second party to the contract;
• if a teenager is between 14 and 18 years old, he can independently make a transaction, but only if his guardians give written consent to it.

In any case, a person will be able to dispose of a car only after reaching adulthood.

When donating a car to other persons who are not immediate family, you must pay tax on the transaction. Its size is equal to 13% of the total cost of the vehicle for residents of the Russian Federation and 33% for non-residents. However, social tax deductions in this situation are not provided for by law.

Pros and cons of the scheme

The donation procedure, like other transactions related to the transfer of ownership, is regulated by the Civil Code. Compared to purchase and sale transactions, donation has the following advantages:

• A simple procedure for registering and transferring property.
• It is not necessary to have the transaction certified by a notary.
• You can even give a car to a child or a stranger.
• Close relatives may not have to pay gift tax.
• The recipient of the gift has no obligations to the giver.

Unlike purchase and sale transactions, the fact of donation will be almost impossible to challenge in court.

Another disadvantage of donation is that if you register a transaction with a notary (draw up a deed of gift and have it certified), you need to pay about 10,000 rubles.

The deed of gift for the car is in writing, but this is not a mandatory requirement. The new owner needs the contract to register the car. It is also not necessary to have the agreement certified by a notary. Before donating a car, the owner needs to prepare for the transaction: take into account all the nuances of drawing up the contract and, just in case, keep a copy of it.

What requirements must be met to issue a deed of gift for a car?

Despite the fact that the law allows you to sign a deed of gift with any person, there are a number of rules, failure to comply with which prohibits the conclusion of a gift transaction.

These requirements are contained in the main legislative act regulating the issues of registration of deeds of gift. This is the Civil Code of the Russian Federation, Chapter 32, Article 575 (https://www.consultant.ru/document/cons_doc_LAW_9027/e9b1f2aeabf3c6b71fea f2170dd49d4d1c70d5d5)

According to this document, in order to donate a car to a relative or other person, it is necessary that: