Particularity of furnished rented properties: rents must be declared in the category of industrial and commercial profits (BIC) and not, as for empty rented properties, in that of property income. The tax conditions depend on the type of rental you did last year.
For long-term rentals, as long as the amount of rent you collected in 2023 has not exceeded 77,700 euros, you are automatically covered by a simplified tax regime: the micro-BIC. You do not have to submit a specific declaration.
Simply enter the amount collected on your declaration (lines 5ND to 5PD). The amount of your taxable rent will be determined on a fixed basis by the tax administration, which will be responsible for applying a 50% reduction to the amounts declared. Don’t deduce it yourself!
You cannot deduct anything more, even if you have carried out significant work. But in return, with the micro-BIC, you only pay income tax (progressive scale) and social security contributions (17.2%) on half of what you have earned, whatever the reality of your charges.
Amortization
Beyond this limit of 77,700 euros, or if you opted for the real regime at the latest when filing your income tax return last year, you come under a real regime which, as its name l indicates, allows you to deduct all of your expenses for their actual amount.
In addition to current property charges (loan interest, maintenance work, insurance, etc.), this plan allows you to deduct acquisition costs and depreciate, each year, the accommodation and furniture, that is to say, to deduct a fictitious charge corresponding to the loss of value linked to time and use of the goods. The practice of depreciation generally makes it possible to obtain an accounting and tax result close to zero, and therefore not having to pay tax (neither income tax nor social security contributions) for a long period of time.
But, in this hypothesis, your reporting obligations are much heavier, comparable to those of a small business, whether you practice furnished rental professionally or not. You must prepare a declaration of results prior to your annual income tax return itself – to be transmitted before May 18 to the corporate tax service – in order to then be able to complete your income tax return..
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