Question to an expert
How will the construction costs be taken into account when calculating the capital gain realized on the sale of shares in a real estate company (SCI)?
When a person sells the shares of an SCI of which he is a partner, he may realize a capital gain which must then be taxed. The taxable capital gain is the subject of a fairly complex calculation taking into account the previous results of the company on which the partner has already been taxed. As a result, it is not strictly equal to the difference between the sale price and the purchase price.
The question has recently arisen as to whether the acquisition price of the shares used to calculate the capital gain should be increased by the construction costs of the building borne by the SCI, which would decrease the most- taxable value. If the solution is clear when a person sells a building (in which case the cost of construction must be taken into account), it was not in the event of a transfer of shares in an SCI.
It is therefore interesting to note that according to a judgment of March 31, 2021 of the Administrative Court of Appeal of Paris, the purchase price cannot be corrected for construction expenses, which relate to the building more than to shares of the company that owns them. This solution must be kept in mind when it comes to choosing the methods of acquiring a building, directly or through an SCI.