“I will no longer deduct the land deficit”

“My wife and I, both teachers, experienced a tax audit two years ago. It all started when we received a registered letter with a request to document dozens of documents, from our children’s birth certificates to invoices for the work we did after acquiring a rental property. We immediately returned the requested goods.

Unfortunately, the verdict is: a tax settlement of approximately 20,000 euros. We have been accused of several mistakes. The tax reduction associated with our Pinel investment was challenged due to the fact that the investment did not meet the energy conditions required to take advantage of the tax benefit. Then the administrator questioned the amount of land deficit that we deducted from our total income. The dispute was mainly based on notary fees withheld as admissible expenses from the rent.