Gift deed for grandchild is taxable

Article 14 of the Family Code of the Russian Federation considers grandchildren and granddaughters as close relatives. Citizens falling under this category have a number of privileges when registering an inheritance without a will. By participating in gift agreements as recipients, grandchildren and granddaughters have the opportunity to be exempt from paying personal income tax. Most often, questions related to how to issue a deed of gift for a grandson or granddaughter worry grandparents who want to transfer real estate to loved ones without unnecessary difficulties. This procedure is being implemented within the framework of a set of articles of the Civil Code of the Russian Federation.

Gift from grandmother to grandson or granddaughter

You can get rid of paying personal income tax, as well as secure the gift transaction as much as possible if the grandson or granddaughter is an adult citizen of the Russian Federation. Otherwise, there is a need for legal representatives. The main thing is to make sure that there are no illegal intentions on the part of persons representing children under the age of majority.

Another category of difficulties associated with minors is that the donor simultaneously acts as a guardian. The law prohibits the implementation of transactions under such circumstances. However, correct and timely actions related to the involvement of guardianship authorities will allow this situation to be resolved.

How to issue a deed of gift to a grandson or granddaughter

Gift deed is a transaction for the gratuitous transfer of property. The procedure is regulated by Art. 152 of the Civil Code of the Russian Federation, and implies the absence of taxation for close relatives. Grandsons and granddaughters fall under this category, as evidenced by certain provisions of the Family Code.

The donation can be made orally, without contacting a notary. However, there is an exception to this rule: if the agreement and the actual transfer of property are carried out on different dates, then all the features of the transaction must be documented. This is stated in paragraph 2 of Art. 574 of the Civil Code of the Russian Federation.

Note!
If the promise to donate property within a certain time frame is broken, but a deed of gift is previously concluded, then the donation will still take place.

A written agreement is required if real estate or automobile equipment is given as a gift. Recording the transfer of a gift is not a legal requirement, however, a deed of gift is included in the list of mandatory documents for registering movable or immovable property with the relevant authorities.

Unlike a purchase and sale agreement, a deed of gift does not require notarization. It is carried out voluntarily and is aimed at obtaining guarantees that the transaction is correct. In this case, it is necessary to carry out the certification taking into account the rules set out in Article 163 of the Civil Code.

The agreement is not a mandatory element of the gift transaction, but experts recommend taking care to draw it up. In addition to the standard details, it should include:

information about the gift - description, technical features, cost, presence of defects;
nuances of the transaction - date and method of transfer, accompanying actions of the donee.

Note!
If a gift has features that could cause harm to the recipient, then this aspect should be covered in the document in as much detail as possible. Otherwise, upon the fact of harm caused, liability may be applied to the donor within the framework of the law.

Required documents

How to draw up a deed of gift for an apartment? Deed of gift and deed of gift - what is the difference? What is better – a deed of gift or a will for an apartment? How much does it cost to issue a deed of gift for an apartment? Read about this and more in our material.

Briefly about the main thing

7 The recipient deceived the donor or threatened violence. Any agreement, including a gift agreement, must be concluded in the good will of the parties. If the donee misled the donor or made threats in order to receive the apartment as a gift, then the transaction can be challenged.

Important! You can only be fined if the inspectors have sent a notice of delay. If you realized that you did not pay the duty before the tax authorities, pay off the debt and penalties as soon as possible. Then no one can punish you.

Under donation according to Art. 572 of the Civil Code of the Russian Federation is understood as the gratuitous transfer of property (property rights) from one person to the ownership of another. Based on this, it is necessary to highlight the characteristics inherent in this transaction:

Terms of a transaction

When the deed of gift does not contain data on the price of the property, the amount of income in the declaration is indicated according to the market price of the apartment received. When comparing prices, tax authorities in most cases are guided by the cadastral value of the property.

If there is a need to sell the property before the minimum period of use has expired, the owner will have to pay tax. However, in this situation, the state stands on the side of the citizen. At the legislative level, tax incentives are provided that significantly reduce the tax on the sale of an apartment or house.

The concept of “sole housing” implies the absence of additional square meters. That is, the person who is the seller under the purchase and sale agreement should not own other real estate.

Sales tax

Previously, the tax was directly calculated based on the inventory value of residential premises. But in August of this year, the cadastral revaluation of private and commercial housing construction was completed. This means that real estate tax from January 2021 will directly depend on the cadastral value of a particular property.

May 10, 2021 vektorurist 60

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What documents are needed to formalize a deed of gift for an apartment for a grandson?

As noted earlier, to transfer a gift in the form of real estate, it is recommended to draw up a gift agreement. It is necessary for the subsequent registration of property rights, and in accordance with this, the donor is obliged to prepare a package of documents. It includes the following:

civil passports of the parties to the transaction;
title documents for the transferred apartment;
extracts from the BTI and other technical documentation;
if the property is divided into several owners - written consent (or oral, requiring the participation of all owners when registering property rights);
if one of the owners died - a death certificate;
certificate of residents who have permanent or temporary registration in the transferred apartment;
if instead of the donor or donee, an official representative participates in the transaction - the original general power of attorney.

The main document - the gift agreement, is drawn up taking into account the standards noted in Art. 432 Civil Code. You will need to create two copies: one is transferred to the registrars, and the second remains with the donee.

Ksenia Cherkasova, head of the appraisal department, answers:

To avoid claims from your daughter or grandson in relation to your apartment, when purchasing a new property you should register ownership of your daughter and her son, as a minor, in equal shares. You may find it necessary to allocate a share in the property rights to your daughter’s husband.

Next, the responsible tenant must make changes to the social tenancy agreement, that is, discharge the daughter and grandson from your apartment while simultaneously registering permanent registration in the new apartment. After this, you should receive from your daughter and grandson a written refusal to participate in privatization and, on the basis of the Law of the Russian Federation of July 4, 1991 N 1541-1 “On the privatization of housing stock in the Russian Federation,” draw up an agreement for the transfer of the apartment into your ownership with subsequent registration in Rosreestr and registration of a certificate of ownership.

Having become the owner of real estate, you will have the right to dispose of it yourself: sell, donate, transfer to other persons by will and perform other actions provided for by the civil legislation of the Russian Federation. During your lifetime, neither your daughter nor your grandson will be able to in any way lay claim to your apartment without your consent. The daughter, as a direct heir, will have the right to inherit your apartment only after the death of the owners, along with other first-line heirs. And only in the absence of a will, where other persons will be indicated as heirs.

Donating an apartment to grandchildren

Transferring an apartment to your grandchildren as a gift is the best way to avoid taxation of the transaction. At the same time, the procedure has some difficulties. They are associated with two factors: the peculiarities of the legal circulation of real estate and the legal status of the donee. If the rules are violated, the deal can be canceled at any stage.

Since the transfer of property rights requires mandatory registration, payment of the state fee is a mandatory condition. Most often, it is assigned to the donee, and in accordance with Article 333.33 of the Tax Code, the amount will be 2 thousand rubles.

Since the transfer of property to a relative is not subject to personal income tax, the above-mentioned agreement must contain information about the existence of family ties between the parties involved. Most often, birth certificates of a grandson and a parent are sufficient. If one of the documents is missing, then you can prove the relationship in court or contact the registry office at the place of registration. Most often, this organization stores copies of documents in the archive.

Another feature that should be taken into account when drawing up a contract is the presence of people registered in the apartment. The owner is obliged to note whether these are present. It should also be indicated whether they are required to register or can reside after the transfer of ownership rights without changing their place of registration.

Gift to a minor grandson or granddaughter

If the donee is a minor child, then his age becomes the decisive factor. In this case, the concepts of “minor” and “minor” should be correctly distinguished.

The category of minors includes citizens under 14 years of age. A legal representative will participate in the procedure for donating property subject to state registration instead of a child. Minors (from 14 to 18 years old) can independently take part in such transactions, but they will need written permission from their parents or other legal representatives.

Difficulties may arise if the donor (grandparent) is the legal representative of the donee (grandson or granddaughter). It is legally prohibited for one person to participate simultaneously on both sides of one transaction. In accordance with this, the donor is obliged to contact the local guardianship authorities with an application. The goal is to appoint a temporary guardian who can represent the interests of the child during the transaction and related actions.

Violation of the rules noted above will not allow state registration of the donated object - movable or immovable property. Once the registration arrangements are completed, the donor may revoke the temporary guardian and continue to perform his duties.

Is it possible to be exempt from tax if the gift occurs between cohabitants?

It's always nice to receive gifts, especially if it's an apartment or a house. The only problem is that such gifts are of great interest to the tax service - after all, income received in the form of donated real estate is subject to personal income tax (clause 18.1 of Article 217 of the Tax Code of the Russian Federation).

Who must pay tax when donating real estate and how much?

The rules for calculating tax on donated real estate cannot be called simple: they have recently undergone a number of changes, so now there are more nuances. Let's look at the main ones, taking into account the latest clarifications from the Federal Tax Service.

Is gift tax subject to tax and who must pay the tax? Citizens are required to declare all their income, including items received as a result of legal transactions. Therefore, the obligation to pay tax payments falls on the recipient, since he has income in the form of received property.

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The gift agreement is signed by both parties. Civil legislation provides that it can be drawn up in the form of a simple written agreement, or in the form of a notarial agreement. The form of the documents is chosen by the parties. In the future, when the deed of gift is signed, it will need to be registered with the registration authority - Rosreestr.

Terms of a transaction

The above-mentioned persons pay tax payments on a general basis, despite existing family ties. Pensioners do not have benefits when donating. Only if he is one of the close family members, then the benefit applies. To confirm the relationship between the parties, it is necessary to have an appropriate document, according to which the chain of relationship can be established.

Legally, the law provides for a situation where a child aged 14 to 18 years can donate an apartment that belongs to him. But in practice this is almost impossible to achieve. Art. 54 Federal Law No. 218 of 2015 provides that trustees or parents of a child donor must obtain permission to make a gift from the guardianship department at their place of registration. Specialists from the guardianship department will most likely give a written refusal to such an application, since as a result the child’s financial situation will worsen. With this refusal, parents must go to court to have it declared illegal. But as of 2021, there is no positive judicial practice in such cases. That is, the parents will be refused in court.

Taxes on gifts to a grandson or granddaughter

Receiving property through a gift is income that does not require payment of personal income tax, unlike purchase and sale transactions. However, this rule has an exception. Donated real estate and transport are subject to taxes.

Clause 18.1 of Article 217 of the Tax Code indicates exemption from the tax burden in situations in which the donor and recipient are close relatives. The Family Code, in turn, determines that there is a close relationship between grandparents and grandchildren. This confirms that there is no need to pay personal income tax.

In some situations, the donee may be faced with the need to pay property taxes. The parties are informed about this at the stage of registration of property rights. If this obligation has arisen, then when calculating the amount of taxes, the cadastral or inventory value of the housing is taken into account. When determining the specific value, the rules specified in Article 406 of the Tax Code are also taken into account. The rate ranges from 0.1 to 2 percent of the used value of the property.

How to pay gift tax in 2021

Also, the following nuance is important. If a close relative-donee decides to sell the property received as a gift in the first 3 years after the right to register the property, he will be required to pay a 13% tax ! In the same situation, other relatives and third parties will have to pay a mandatory fee. Thus, the transfer of a house, cottage, apartment or any other piece of real estate between distant relatives entails the mandatory payment of personal income tax.

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Who must pay gift tax

If the donee ignores these instructions, the tax inspectorate may file a claim against him in the judicial authorities. Thus, if the total amount of tax is less than 50,000 Russian rubles, the decision on this case will be made by the magistrate at the debtor’s place of residence.

You can reduce the amount of tax by indicating the figure mentioned in the BTI documents (in most cases, it is less than the market one). You should not underestimate the price of the apartment being donated when drawing up a deed of gift - this will raise suspicions of tax evasion.

the court indicated that the tax code does not clearly state on what value taxes must be paid when donating real estate. but there is a review of the judicial practice of the Presidium of the Supreme Court of the Russian Federation on October 21, 2015. in p.

From what price of an apartment should tax be calculated?

Personal income tax can only be calculated from the cadastral or market value of the donated apartment - clause 6 of the review of judicial practice, which was approved by the Supreme Court of the Russian Federation on October 21, 2015. in the donation agreement you can indicate either the cadastral value, or the market value, or not indicate it at all. I wrote about the market value below.

With annuity – can be given as a gift with the consent of the annuitant. The donee will assume annuity responsibilities.
With the ones registered, you can give them as a gift, you don’t need to obtain consent. Lifetime tenants should be included in the contract.
Mortgaged apartment - you will have to obtain the consent of the lender. If we are talking about a mortgage, it will be necessary to replace the borrower as in the transaction for the DCT of mortgage housing.
With arrest - you can’t give it as a gift. First you need to remove the arrest.

As a general rule, it is impossible to cancel a transaction of donating an apartment without a reason after registration of rights. This requires serious reasons, which are provided for by law. The donor's desire alone will not be enough in this case.

Is it possible to cancel a donation?

After this, the package of documents will be taken for registration, and each participant in the transaction will be given a receipt. The receipt will indicate the date when the result can be received. As a rule, the procedure takes 5-14 business days.

If you do not want to pay tax, the transaction can be formalized as a purchase and sale agreement with a conditional transfer of funds. In this case, if the donor sells real estate that is more than three years old, he will not have to pay tax. If the premises are less than three years old, then tax will need to be paid provided that it costs more than 1 million rubles.

If the recipient is a Russian resident, then he pays income tax at a rate of 13%. Non-residents pay a similar tax at a rate of 30%. The tax base for donating an apartment is determined in accordance with the current market value of the object, which is compared with its cadastral value. When determining the amount of tax levied, the value of the apartment indicated by the parties in the deed of gift may be taken into account.

Tax on the sale of an apartment

Finally, after a few days, an extract from the Unified State Register is issued - from that moment the gifted person becomes the full owner of the apartment. Subsequently, the citizen must pay personal income tax in the amount of 13% if he does not have the right to tax exemption.

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