How the device works
1. SIMPLE
Common law regime not subject to the capping of tax loopholes
For any customer with land profits
2. EFFICIENT
Double tax impact on TMI + social security contributions (CSG / CRDS)
Uncapped deduction of maintenance, repair and improvement work from property profits
Deduction of land deficit from overall income within the limit of €10,700 per year
Carryover of the DF surplus over the following 10 years
Loan interest and similar costs deductible from property income
Rental of unfurnished property for 3 years
Immediate and powerful tax impact of up to 53% of the investment amount
3. ACCESSIBLE
Total price from €110,000 in cities like Marseille, Tours, Nîmes, Bayonne, Metz, Toulon...
Withholding tax (PAS)
According to the PAS systems, it is possible to obtain 150% deduction of work expenses if:
A work expense incurred in 2024 will be deducted 100% from 2024 land income and 50% from 2025 land income, which gives an effect of 150%
A works expense paid in 2025 will be deducted at 50% from 2025 property income
These imputation rules do not apply :
to acquisitions made from January 1, 2025
for so-called emergency work
So-called non-controllable charges (taxes, insurance, loan interest, etc.) will be deductible in 2024 from the moment they become due.
To know
Work paid in 2024 benefits from a “ 150% effect ”. This transitional measure is an economic incentive aimed at maintaining the activity of the building trades and work orders in 2024.
A double opportunity to support a work load in 2024
The opportunity to create, in 2024, a land deficit carry forward.
Even though ordinary 2024 property income will not be taxed, it is appropriate, with regard to the rules of the SAS and the carryover of Land Deficit (1 • paragraph of 3 of I of article 156 of the CGI) to create during the year 2024 a deficit carried forward to land income for the following 10 years .
The opportunity to preserve, in 2024, an existing deficit carryover.
A works expense incurred in 2024 is intended to preserve existing old loss carryforwards. To avoid the automatic and therefore confiscatory imputation of the existing deficit carryover to the 2024 property income, the taxpayer must bear, in 2024, a work expense at least equal to the declared property income .
Example: The certain efficiency of the 150% effect and the creation in 2024 of a carry-forward deficit
Customer profile:
Recurring property income of the investor: €20,000
Rental real estate investment of €200,000 made in 2024 including €150,000 of work
Recommendation :
HERITAGE STRATEGY
Pay a works expense in 2024 rather than 2025
To optimize the 150% effect, pay in 2024 an amount of work ≥ 2 x (2024 land income + €10,700)
Pay a works expense in 2024 to preserve an existing deficit carryover
If you have any questions regarding the specifics of the system, do not hesitate to contact us at amm@capitalconseils.net .
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