Charlie Cailloux, legal counsel for Individual to Individual and the PAP.fr websitehelps us today to declare our rental rents, if we are a lessor.
franceinfo: What is the deadline for reporting?
Charlie Pebbles: Depending on your department, you have until the end of May or the beginning of June. As soon as you have Internet access, you must complete this declaration online. If this is impossible for you, you can continue to use the paper declaration but in this case, you have until May 19 to send your declaration.
And so now is the time to declare your rental income if you are a landlord!
Exactly ! If you rent unfurnished, you must declare in the property income category, if you rent furnished, you must declare in the industrial and commercial profits category. In both cases, you are not taxed on 100% of the rents you receive, we take into account the charges you had to pay for the rental of the accommodation. These charges are deductible from your rent.
The charges, are these the works for example?
Yes works for example, but also property tax, loan interest (very important), insurance costs, condominium fees. You deduct these expenses for their real amount and you thus limit your tax base. Below 15,000 euros in empty receipts, and 72,000 euros in furnished accommodation, you can also benefit from a flat-rate scheme (which is much simpler since you benefit from a flat-rate allowance but often less financially attractive).
And precisely, can we say that the furnished rental is more interesting than the empty rental or vice versa?
It is often said that furnished rentals are much more interesting because with the help of an accountant you can depreciate the value of the accommodation (in addition to the charges, you can deduct a percentage of the value of the property each year and reduce enormously taxation).
But be careful, if you earn more than 23,000 euros in furnished rentals and these rents are your main source of income, you will be considered as a professional furnished rental company, which triggers the payment of social security contributions.
Another point to take into account (even if it is not a tax issue), furnished rentals require more management (tenants leave more often, there are more vacation rentals, more repairs to do). You have to do your calculations!