Table of contents:
- What is exchange
- What is important to remember when concluding an exchange agreement
- How to draw up a barter agreement
- What documents are needed to conclude an exchange agreement
- Will the barter agreement save you from having to pay taxes?
- What to remember
2023 Author: Malcolm Clapton | [email protected]. Last modified: 2023-07-28 10:38
It is possible to get ownership of property without money.
What is exchange
Anyone has practiced similar deals back in the sandbox. For example, when he gave another child a car with a radio control and took a cool plastic spatula for himself. Although the parents were unlikely to be pleased with such an exchange, they had to put up with the decision.
In adulthood, everything is the same, only with documents. An exchange agreement is concluded when one property is exchanged for another. For example, one person gives a car and gets a boat. Or people change apartments, instead of each looking for a buyer for their property and an option to purchase. The latter scheme was common in the Soviet Union, where apartments could not be bought. You may remember the movie "For Family Reasons", where young spouses and mother-in-law are trying to exchange housing in order to leave. This is exactly it.
By default, it is assumed that the goods to be exchanged are of equal value. But it is possible that one of the participants in the transaction pays extra to the second. For example, when a three-room apartment in the center is exchanged for a one-bedroom apartment on the outskirts, but with a surcharge.
Both individuals and legal entities can be participants. Transactions involving the exchange of goods for services do not apply to barter agreements. That is, it is possible to render them to each other mutually, but on different conditions.
What is important to remember when concluding an exchange agreement
The same rules apply to exchange contracts as to sales contracts, with the exception of those relating to cash payments. Each of the participants acts as a seller of his property and a buyer of someone else's. Only the number of body movements is reduced. Instead of two deals - one. And, accordingly, only one contract is concluded.
The property is transferred to the new owners at the same time after they have fulfilled their obligations. However, when it comes to real estate, the transfer of ownership must be registered with Rosreestr. If one of the parties is in no hurry to fulfill its obligations, then the second party to the transaction may refuse to transfer the property, return it to itself and additionally demand compensation for losses.
How to draw up a barter agreement
The exchange agreement, like the purchase and sale agreement, can be concluded in a simple written form. It is not necessary to certify it with a notary. An exception is made for shared ownership. If not all owners participate in the transaction at once, and some of them want to exchange their part of the property, then the participation of a notary will already be required.
At the beginning of the document, as always, the participants in the transaction and their passport data are indicated. What information needs to be specified further, let us consider the example of a car exchange.
Subject of the transaction
This clause specifies what is actually subject to exchange.
The subject of exchange is an equivalent product, namely:
- The car owned by the No. 1 seller on the right of personal property. Ownership is confirmed by a technical passport.
- Vehicle owned by No. 2 seller. Ownership is confirmed by a technical passport.
In the first paragraph, we have already indicated that the goods are of equal value. For persuasiveness in the description of each of the cars, it does not hurt to add a price.
If the cars are not the same and a surcharge is expected, this also needs to be prescribed.
Seller No. 1 pays rubles when the car is handed over - the difference between the cost of the cars being exchanged.
Terms of transfer of property
Indicate how many days are given for the actual exchange of property. These can be different dates for each participant in the transaction.
The transfer of the exchanged goods is made within days from the date of signing the contract.
If something remains unfinished, but you really want to point it out, you can do it. Often, for example, a line is added to the document stating that the goods specified in the contract have not been sold to anyone, have not been pledged or arrested.
What documents are needed to conclude an exchange agreement
The same as for the sales contract. For example, when selling a car, this is, in addition to the passports of the participants in the transaction, the passports of vehicles.
Will the barter agreement save you from having to pay taxes?
With some exceptions, tax must be paid on the income received from the sale of property. An exchange agreement will not save him: part of the transaction qualifies as a sale of property. The income was received from it, just not in money, but in other property. And the state does not care whether it is expressed in money or in kind.
The amount of income is determined based on the value of the property received from the other party to the contract. But at the same time, the taxpayer gives his property a certain value and can claim tax deductions, depending on what changes.
For example, when selling real estate that has been owned for less than a certain number of years (read more about this in a separate material, there are many nuances), you can apply one of two deduction options and reduce income:
- The amount once spent on the purchase of real estate.
- For 1 million rubles.
Then you have to look at what is more profitable. Let's say a person owns a house in a village worth 1.2 million rubles. Once he bought it for 400 thousand. When exchanged for an equivalent income, it is equal to 1.2 million. A person can pay tax on 800 thousand (1.2 million minus costs of 400 thousand) or from 200 thousand (1.2 million minus a million). The second option is clearly more profitable.
What to remember
- An exchange agreement is concluded when two people agree to give each other their property and receive someone else's. They don't want to transfer money back and forth, so they just change.
- The exchange represents two transactions of purchase and sale of each object, but in one contract. And the rules apply to the document the same as when buying and selling.
- If one person behaves contrary to the agreement, the other can cancel the exchange and demand compensation.
- The contract can be drawn up in simple written form. But if you are not confident in your abilities, it is better not to skimp on the services of a lawyer or notary in order to take into account different nuances.
- You will not be able to avoid taxes when exchanging. The same rules apply as for the sale of property.
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