IFI (TAX ON REAL ESTATE ASSETS) : STRATEGIES
The IFI is now limited to real estate. Also, the reorganization of your taxable wealth can be an important issue. To reduce it, you can sell some of it and anticipate the transmission to your loved ones. As the value of your real estate assets is appreciated on January 1 of the tax year, all the solutions implemented in 2018 will have their effects for the IFI of 2019.
Sell or reallocate real estate assets
If your wealth is mainly invested in real estate, you can sell some of it and reinvest the proceeds on assets or investments now exempt from IFI. However, a coherent heritage strategy should not be considered solely in terms of the IFI. Indeed, it is sometimes preferable to pay a few thousand euros of IFIs (the upper end of the scale is 1.5%), rather than pay a tax on the capital gain and to separate from goods providing a additional income. Especially since the IFI may not be intended to last.
If you have investment properties, an alternative is to adopt the status of Rented Furnished Business (LMP). Your rented goods are then considered as professional and leave the IFI. For this, your furnished homes must earn more than 23,000 euros per year and generate more than half of your professional income. This solution is therefore particularly aimed at pensioners whose pensions are not professional earnings.
Anticipate the transmission to his relatives
To reduce your taxable wealth, you can also anticipate your estate and give real estate to your children. Each parent can give up to 100,000 euros to each child, with no fees to be paid, every 15 years. Be careful, however, to preserve the rights of your heirs.
In addition, by donating real estate instead of selling it, you write off unrealized gains. However, if you only give the bare ownership of property to your children, you remain indebted to the IFI on their freehold value.
Give temporarily the usufruct of a property
Another way to help a child while reducing his taxable wealth, is to temporarily transfer the usufruct of a rental property. No longer being the bare owner of the property, it is leaving your taxable estate during the dismemberment. Your child will then receive any income for you and will be taxed on the rents collected.
Donation rights are limited to 23% of the full value of the property per 10-year dismemberment period. They benefit from the allowance of 100,000 euros between parents and children. A solution to put in place with a notary.
Tel : 01 48 00 88 75