Getting a vehicle as an inheritance is a process that often raises more questions than joys for heirs. Immediately after the opening of a hereditary case, a lot of legal and financial dilemmas arise associated with the registration of property rights. The main stumbling block for most citizens is the tax issue.
Many people mistakenly believe that owning a car automatically obliges them to pay the state a percentage of its market value. However, the legislation of the Russian Federation in this matter is quite clear and transparent. In this article, we will discuss what payments you will have to make, and what myths you should forget.
It is important to understand that the tax legislation is changing, and what was relevant five years ago may no longer be valid. Therefore, when planning the budget for the registration of inheritance, it is necessary to rely on the latest norms of the Tax Code, currently in force.
Personal income tax on inheritance of a car
The most common fear of heirs is the need to pay personal income tax (NDFL) from the property received. Under the current legislation, income received by way of inheritance, fully released tax-free. This rule is enshrined in paragraph 18 of article 217 of the Tax code of the Russian Federation.
This means that if you received a car from a deceased relative or even a stranger, you are not required to give the state 13% of the value of the car. This rule applies to all heirs, regardless of the degree of kinship. It doesn’t matter if you are a close relative or a distant acquaintance.
However, there are nuances that concern not the fact of inheritance, and the subsequent sale of inherited property. If you decide to sell the car immediately after registration of ownership rights, other rules for calculating the taxable base will come into force. Here you will have to take into account the period of ownership and the cost of purchase.
⚠️ Note: Exemption from personal income tax applies only to the cost of the car itself. If there are other assets in the inheritance, such as copyrights or patents, the income from them may be taxed according to the general rules.
Thus, there is no direct tax on the receipt of a car as a gift or by inheritance in Russia. This greatly simplifies the process of inheritance acceptance, although it does not eliminate other mandatory costs, which will be discussed below.
Do not try to underestimate the cost of the car in the documents for the notary – inheritance tax is still not taken, and problems with the law may arise when selling.
State duty for the issuance of a certificate of inheritance
Although the inheritance tax is abolished, the procedure for issuing documents with a notary is paid. For the commission of notarial acts, a state fee is charged, the amount of which depends on the degree of kinship between the testator and the heir. This is not a tax, but a fee for the services of the state to formalize the transfer of rights.
For close relatives, the tariffs are significantly lower than for all other categories of citizens. The first preferential category includes spouses, parents, children (including adopted) and full-fledged brothers and sisters. For them, the legislator has set a reduced rate to minimize the financial burden on the family in a difficult time.
All other heirs, including distant relatives, friends and common-law spouses, pay the fee at a higher rate. The calculation is made based on the estimated or cadastral value of the vehicle at the time of death of the testator. The notary is obliged to warn you about the right to choose the lowest of the values for calculating the fee.
Below is a table with the current rates of state duty:
| Category of heirs | Fee rate | Maximum amount |
|---|---|---|
| Close relatives (spouses, parents, children, full-born brothers/sisters) | 0.3% of the value | 100,000 rubles |
| All the other heirs. | 0.6% of value | 1,000,000 rubles |
It is important to note that these amounts are limit amounts. If 0.3% or 0.6% of the cost of the car gives an amount less than the maximum, you pay the calculated percentage. There are also categories of citizens who are completely exempt from paying the state duty, for example, minor heirs or persons with mental disorders.
Transport tax after inheritance
Another important aspect that is often overlooked is the current transport tax. The obligation to pay it arises from the new owner from the moment of registration of the car in the traffic police, but there are important nuances concerning the period between the death of the owner and the entry of heirs into the rights.
Tax authorities continue to charge transport tax on the car until it is removed from the register or re-registered for a new owner. However, according to the explanations of the FTS, the tax should be charged in the name of the actual owner. After the death of the owner, the accrual shall cease in the month of his death.
If the tax office sends claims for payment of tax for the period after the death of the owner, such claims can and should be challenged. Heirs are liable for the debts of the testator only within the value of the inheritance, but the tax itself as a mandatory payment for possession should not be charged to the "dead soul."
Transport tax It is regional, so its rate depends on the engine power and the region of registration of the car. Once you have the car yourself, you will be the payer of this tax on a general basis.
Estimation of the cost of the car for a notary
To calculate the state duty, the notary must provide a document on the assessment of the cost of the car. Without this document, the registration of the inheritance is impossible. You have the right to apply to both public and private appraisal organizations licensed for this type of activity.
The cost of appraiser services varies depending on the region and urgency, but usually ranges from 1000 to 5000 rubles. It is important to understand that a notary is suitable for a report on the valuation of market value or data on cadastral value (if it is determined for this type of vehicle), but most often it is a market valuation that is required.
The assessment is made on the date of death of the testator, not at the current time. This means that if the car was an old model and at the time of death cost little, and the duty will be calculated from this amount, even if now similar cars are more expensive due to rising prices.
Can I use a certificate from the Internet?
Just a screenshot from the ad site (Auto.ru, Avito) for a notary is usually not enough. An official document (Evaluation Report) with the seal of the organization and the signature of the appraiser with a qualification certificate is required.
Some heirs are trying to understate the cost in the report to reduce the state duty. This is risky, as the notary may request verification or use their own databases. In addition, the undervalued cost can create problems in the subsequent sale of the car.
Benefits and exemption from payment of state duty
The legislation provides for a number of categories of citizens who are entitled to benefits when paying a state duty for issuing a certificate of inheritance. These benefits are social in nature and are aimed at supporting vulnerable segments of the population.
Minor heirs, as well as persons suffering from mental disorders over whom guardianship is established, are completely exempt from paying the state duty. This is an unconditional right that is realized when providing relevant documents (birth certificate, certificate of disability).
There are also benefits for certain categories of citizens living in the same residential premises with the testator and continuing to live there after his death. However, the application of this exemption to vehicles is limited and more often applies to residential real estate.
⚠️ Note: The benefits are not automatically applied. You must provide the notary with documents confirming your right to the benefit before the payment and issuance of the certificate.
If you belong to a preferential category, but the notary requires payment, refer to articles 333.35 and 333.38 of the Tax Code of the Russian Federation. Proper execution of documents will allow you to save significantly on the procedure of inheritance.
☑️ Documents for beneficiaries
Tax on the sale of an inherited car
The situation changes dramatically if you decide not to keep the car, but to sell it. In this case, you receive income that is potentially taxable on personal income tax. However, there is an important rule about the term of ownership.
According to the current amendments to the Tax Code, the minimum term of ownership of the object of immovable and movable property obtained by inheritance for exemption from tax is 3 years. This means that if you sell a car that has been in your property for less than three years, you will have to pay tax.
The tax is 13% of the amount of income. However, the basis for calculating is not the full cost of sale, but the difference between the sale price and the purchase price. Since you did not pay anything in the inheritance, the basis is formally the entire amount of the sale. But you can take advantage of the property deduction.
The amount of property deduction when selling movable property is 250 000 rubles. If you sell the inherited car for less than this amount, you do not need to pay tax at all. If more expensive, the tax is paid only on the excess amount.
Let's take an example of calculation:
- 🚗 You sold the car for 600,000 rubles.
- 📉 The deduction is 250,000 rubles.
- 💰 Tax base: 600 000 - 250 000 = 350 000 rubles.
- 💸 Tax amount: 350,000 * 13% = 45,500 rubles.
If you have owned a car for more than three years, then when selling it, you are completely exempt from paying tax and are not even required to file a 3-NDFL declaration. This makes waiting a lucrative strategic decision for many heirs.
The 3-year tenure period for an inherited car is a key factor in avoiding tax on the sale.
Frequently Asked Questions (FAQ)
Do I have to pay tax if the car was received by will from a non-relative?
No, the fact of obtaining a car (taxable income) is not subject to personal income tax, regardless of who was the testator. You pay only the increased state duty to the notary (0.6%), but not income tax.
How is the term of ownership calculated for sale without tax?
The term of ownership is calculated not from the moment of registration in the traffic police, but from the date of opening the inheritance (the day of death of the testator). This is an important clarification that can reduce the waiting time for a tax-free sale.
What happens if you don’t pay the tax after you have inherited it?
The tax office will charge penalties for each day of delay. In the future, the amount of debt can be recovered in court, and the car can be arrested by bailiffs, which will make it impossible to sell or operate.
Can I sell my car before I inherit it?
No, you are not the owner until you receive a certificate of inheritance and registration with the traffic police. Any transactions made before that point will be considered illegal. First the design, then the sale.