OUR ADVICE – Little known to most property owners, land deficit is nevertheless a formidable tax tool that allows you to absorb the burden of maintaining your property by exempting your income from tax. Here are the steps to follow.
This article is from “Figaro Magazine”
To take advantage of the scarcity of land, “you must rent bare accommodation and opt for taxation under the real land regime” recalls Bernard Delorme, a notary in Cholet and a member of the Monassier group. The government has even developed a “super deficit” of land, set aside for energy renovation spending, to encourage landlords to renovate their heat screens. But it is not certain that this “gift” is not poisoned.
With the real mode option, you can deduct any rental fees that your tenant doesn’t pay back from your rent each year. This applies to interest on the loan if the accommodation was purchased on credit, but also to property taxes, management fees, non-residential owner’s insurance, etc. and repairs, maintenance and upkeep, housing improvements. Once all the fees are deducted from the property income, if the difference is positive, it is taxable…