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SEASONAL RENTALS: WHAT MUST THERE BE DECLARED?

SEASONAL RENTALS: WHAT MUST THERE BE DECLARED?

Which status to choose to make a real estate in seasonal rental

An owner renting his main residence or a second home in the Luberon to supplement his income can make tax deductions. But the limits imposed by the administration are strict

 

The practice is now common. To make profitable a real estate, many owners put it in hiring during the periods of holidays, the summer but also the winter. This may concern a second home and also more and more often the main residence. While this solution has the advantage of offering additional income, it nevertheless imposes some obligations towards the tax authorities.

 

Tax return

 

All income from seasonal rentals must be declared. That said, "these revenues are taxable only in excess of € 760 per fiscal year by integrating charges borne by the tenant such as water, electricity or maintenance of a swimming pool" real estate.

 

Possible Deductions

 

By renting a property, an owner obtains the right to make certain deductions. Two regimes are possible.

 

The simplest solution is to declare in micro BIC. This scheme, available for rents of less than EUR 32,600 per year, provides for a 50% flat-rate allowance. For example, in case of leasing for 5,000 euros over a year, only 2,500 euros will be added to the taxable income of the owner. "It is important to remember that in this framework no other deduction of load will be possible," warns the specialist.

 

The other option is to switch to the actual plan. All charges related to the lease are then deductible: borrowing interest, maintenance, works, advertising ... This framework is however much more constraining. "It is therefore imperative to keep an accounting book that is advised to be validated by a notary, a tax lawyer or an accountant. Moreover, this system is set up for at least two years and is renewed for periods of two years, "said the same professional.

 

It is therefore essential to carry out simulations beforehand and be advised by a professional.

 

What if the owner is partially occupied?

 

If the property is rented only temporarily and the landlords occupy it for part of the year, it is necessary to be vigilant about the deductions. In fact, expenses are deductible only pro rata temporis of the letting. Thus, for a leased property 3 months out of 12, the annual expenses will only be deductible to one quarter of their value.

 

It is possible to deduct the expenses corresponding to empty periods not occupied by the owner. But it is necessary to be able to prove in case of control that everything has been implemented to rent the property. For these exceptional cases, it is in any case advisable to contact the administration to take stock of the allowable deductions because each case can be dealt with on a case by case basis.

 

What precautions should be taken in the case of a principal residence?

 

Landlords wishing to rent their principal residence during their absence are subject to the same declaration and deduction rules. However, if the purchase was made via an ELP or a PTZ, the administration may require a repayment of the aid because these devices are not intended to finance rental property.