Taxation of property income
The rents obtained from properties rented unfurnished are taxable in the category of property income. Two separate regimes are applicable to determine their amount subject to tax. These two regimes are: the microfoncier regime and the real tax regime.
The microfoncier regime
The microfoncier regime is a simplified regime for declaring and taxing rents from your unfurnished rentals. It consists in determining your taxable property income by applying to your annual gross rental income a standard allowance for charges of 30%. You are therefore taxed only on 70% of your rents. In return, you cannot deduct your fees and charges for their actual amount.
You automatically fall under this regime if you simultaneously meet two conditions. The gross amount of rents (excluding charges) collected by your tax household must not exceed 15,000 euros per year and you must not own any rental property subject to a device excluding the application of the microfoncier (the Robien device, for example).
Note: you are exempt from filling out a property tax return when you are covered by the microfoncier regime. You must report your annual gross receipts directly on your total income tax return.
The real tax regime
The real tax regime consists in determining your taxable property income by subtracting from the rents generated by your unfurnished rented property the expenses that you have incurred during the year to collect or keep them (management fees, insurance, work expenses , co-ownership charges, loan interest, etc.). If applicable, you can also benefit from a specific deduction (in the event of an option for the old Cosse device, for example) or deduct a fraction of the price of the rented accommodation in the form of depreciation (in the event of an option for the Robien device, for example), in addition to taking into account your actual loads.
Good to know: when your deductible charges exceed your rents, you notice a property deficit. It is chargeable to your other taxable income for the year up to 10,700 euros (except the part related to the deduction of your loan interest), and the excess is chargeable to your property income for the following ten years.
Good to know: when your deductible charges exceed your rents, you notice a property deficit. It is chargeable to your other taxable income for the year up to 10,700 euros (except the part related to the deduction of your loan interest), and the excess is chargeable to your property income for the following ten years.
You automatically fall under this regime when your tax household receives more than 15,000 euros in rents per year or you rent a property within the framework of an exclusive device for the application of the microfoncier regime. You can also opt for its application when you fall under the microfoncier regime. The option is valid for three years, and is then tacitly renewed from year to year, as long as you do not report it.
The application of withholding tax
Since January 2019, property income has been subject to tax and social security deductions at source. The tax authorities take a deposit from your bank account each month, or each quarter as an option. Its amount is calculated by applying your rate of withholding tax, plus the rate of social security contributions (currently 17.2%), to your last declared taxable property income. The down payments paid one year are regularized at the end of the following year, when the tax administration calculates the final tax and social security contributions due on your rents.
VANEAU Immobilier
Tel : 01 48 00 88 75
contact@vaneau.fr
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