Microfoncier or real regime, the calculation is done mainly according to the level of the costs incurred.
by Nathalie Coulaud
The landlord is subject to a particular taxation which has a significant impact on profitability. It all depends if he wants to rent empty or furnished accommodation.
If he praises him empty, he can benefit from a diet called “microfoncier”. In this case, it benefits from a reduction for charges of 30 % and is only imposed on 70 % of the rents received. The declaration system is simple, because there are no supporting documents to produce, but this regime is intended for donors receiving less than 15,000 euros annually.
For donors who earn more or prefer deductions according to the costs actually incurred, it is possible to choose the real regime.
In this case, a certain number of costs are deductible from rents received as the remuneration of the guards, the costs of the real estate agency for the search for the tenant, the drafting of contracts and even the contributions paid to union chambers of owners who give personalized advice. The work to maintain or restore the building or accommodation, rental repairs, work improving the comfort of the tenant is also deductible.
land deficit
The choice between the microfoncier and the real regime is made each year at the time of the declaration of income, which allows the lessor to choose according to the work he carried out in the year. Local taxes can also be deducted from rents as well as loan interest. And if in total all the costs incurred in the year exceed the amount of the rents received, it is possible to create a “land deficit”.
The costs incurred first come into deduction from the rents collected and, if the amount of rents is not enough to absorb them entirely, the remaining sum then deduces the overall taxable income of the year up to 10,700 euros (this limit is now increased to 21,400 euros for energy renovation work).
This can allow a lessor to strongly decrease his income tax, a significant advantage when carrying out work.
If the accommodation is rented furnished, income is considered to be commercial and no longer land income. The “Micro-BIC” regime (industrial and commercial profit) intended for income below 72,600 euros in annual income allows you to benefit from a flat-rate reduction for charges of 50 %, in particular to cover the wear of furniture.
The real furnished diet allows you to deduct costs to the real as well as a sum for the depreciation of the property. The latter must be constant and can represent 2 % per year for fifty years, for example, duration admitted by the taxman
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