How To Transfer Property Free Of Charge

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How To Transfer Property Free Of Charge
How To Transfer Property Free Of Charge

Video: How To Transfer Property Free Of Charge

Video: How To Transfer Property Free Of Charge
Video: Property Transfers and Property Taxes 2024, March
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If you decide to transfer any real estate or other property for free use or ownership, such an action is still a commercial transaction and requires special registration. How to do it?

How to transfer property free of charge
How to transfer property free of charge

Instructions

Step 1

If you are going to donate property to someone, for example children, make a donation agreement. To do this, it is better to contact a notary for qualified legal assistance. The agreement must reflect the following provisions: the property that you are going to donate, the donee's consent to accept this property (it is also necessary). Remember that you cannot donate property to minors on behalf of their representatives.

Step 2

After the conclusion of the contract and the completion of the donation transaction, the one who received the property as a gift is obliged to pay income tax. It accounts for 13% of the value of the property, most often an apartment or other type of housing. However, if the donor and the donee are closely related, and these are spouses, grandchildren, parents, grandfathers, grandmothers, children, brothers, sisters, then they are exempt from paying tax. You will only need to provide the tax authority with a certificate stating that you are close relatives.

Step 3

The parties can also conclude an agreement on the free use of some property, that is, on the provision of a loan. In this case, the contract reflects the period of use of the property and the responsibility of the parties. The contract can be unlimited, that is, the property is provided for use for an indefinite period. After the conclusion of the transaction, income tax must be paid, since the free use is considered to be income. The tax is payable regardless of whether the borrower is an individual or a legal entity.

Step 4

Any paperwork for the transfer of property as a gift or free use is best done in a notary office. There are a large number of subtleties and nuances, the knowledge of which will help to avoid the emergence of controversial situations.

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