Declaration of income: already think of 2024!

When completing your 2023 tax return, it is also better to worry about your 2024 return… Because it is of course your income and expenses for this year that the latter will relate to.

Several changes are already known. For example, the tax benefit granted in return for a forestry investment made by individuals has been adjusted. It previously took the form of either a tax reduction or a tax credit, depending on the nature of the investments (the difference: with a tax credit, if the tax payable by the taxpayer is less than the tax benefit, the tax administration pays the excess). For operations carried out since 1^er January 2023, this advantage is, in all cases, granted in the form of credit, regardless of the operation (purchase, work, insurance).

For works and purchases of wooded land, the rate of the tax credit will also be increased to 25%. For insurance contributions, the limit of expenses taken into account is raised from 6 euros to 15 euros per hectare.

In addition, in order to encourage owners to quickly undertake thermal renovations in the accommodation they rent out, the limit for charging the land deficit to overall income has been doubled. It went from 10,700 euros to 21,400 euros when the deficit results – at least up to 10,700 euros – from energy renovation work.

Bitcoins, SMEs, renovation

This measure applies to work paid for between 1^er January 2023 and end of 2025, the estimate may have been accepted since November 5, 2022. The works must allow the accommodation to go from an energy class E, F or G to a class A, B, C, or D, at most no later than December 31, 2025. Owners will have to have an energy performance diagnosis carried out before and after the work, to prove the change in rating.

Another novelty: until now, gains made on the sale of bitcoins or other digital assets were automatically subject to the one-time 30% flat rate levy (the “flat tax”, 12.8% tax on income and 17.2% of social contributions), without the possibility of opting for taxation at the progressive scale of income tax.

For winnings collected in 2023, the rules change: it becomes possible to be taxed on the scale. This option will have to be exercised a posteriori, during the declaration of income for 2023 which will be carried out in the spring of 2024. It will be independent of that exercised for other investment income and capital gains from the sale of securities.

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