Professional furnished lessor
The activity of direct or indirect rental for furnished or intended to be furnished accommodation is implemented on a professional basis, when the following three conditions are met
The 3 important conditions
- At least one member of the tax household must be registered in the trade and companies register as a professional rental company;
- The income from this activity by all members of the tax household must exceed 23,000 euros including VAT per year;
- These receipts must exceed the professional income of the tax household.
Please note: since January 1, 2017, people who meet the first two conditions - or who fail to be registered with the RCS rent their premises to passing customers who do not elect domicile - must be affiliated with "Security social security for the self-employed" (ex RSI) and pay the corresponding social security contributions.
The main advantages of the professional furnished lessor status
The main advantages of this status are:
- Taxation in the industrial and commercial profits category, which helps amortize the accommodation, but also the furniture.
- Allocation of deficits on the total income throughout the year, without any amount limitation.
- VAT recovery (under certain conditions);
- Benefiting from the professional capital gains system (under certain conditions);
- Exclusion of the leased property (considered to be a professional property) of the wealth tax (IFI) field.
- I own an apartment that is not my principal residence. I put it on sale in order to acquire my principal residence. Can I benefit from a tax exemption on real estate capital gains knowing that I am not the owner of my main home?
- I buy a property for which the mandate of sale provides that the payment of real estate agency commission is the responsibility of the seller. Why is this commission included in the base for calculating notaire fees?
- I am a tenant of my principal residence and owner of my second home. I want to sell it so I can buy a new home that I will assign to my main home. This residence is worth 300.000 €, but I still have 100.000 € of credit to refund. [...]
- I am a partner of an SCI that was incorporated in 1950 for a period of 50 years. No extension has been made at the end of the term, but SCI is still active today. Is it possible to regularize a posteriori?