Rental Income Allowances
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Nigel Bright
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Rental Income Allowances
I found the information below on the FrenchProperty.com website: http://www.french-property.com/guides/f ... omodation/
They say if you buy or have a property that you use for letting you can off-set the running costs below against the rental profit, if you adopt the régime réel income tax regime.
I have used the relevant running costs in the past, when filling in my French tax return for Non Residents without any query by the tax people, all except the cost of insuring the property. The local people at Ceret said it is not allowed. Does anyone know different?
[i]These costs include general management costs, the costs of property insurance, local property taxes, the costs of a managing agent, guardian, caretaker, or gardener and the costs of insurance taken out against the risk of non-payment of rent by the tenant.
Also deductible are the interest costs associated with the purchase, repair or improvement of a rented property or a property purchased with a view to it being let. It is irrelevant whether these interest costs arise from a secured or unsecured loan.
You can also deduct the fees associated with taking out a loan, as well as life insurance premiums payable to guarantee the loan
Whilst the costs of improvement, repair and maintenance of the property are deductible, works to increase the size of an existing property, or add additional units, are not ordinarily deductible.[/i]
They say if you buy or have a property that you use for letting you can off-set the running costs below against the rental profit, if you adopt the régime réel income tax regime.
I have used the relevant running costs in the past, when filling in my French tax return for Non Residents without any query by the tax people, all except the cost of insuring the property. The local people at Ceret said it is not allowed. Does anyone know different?
[i]These costs include general management costs, the costs of property insurance, local property taxes, the costs of a managing agent, guardian, caretaker, or gardener and the costs of insurance taken out against the risk of non-payment of rent by the tenant.
Also deductible are the interest costs associated with the purchase, repair or improvement of a rented property or a property purchased with a view to it being let. It is irrelevant whether these interest costs arise from a secured or unsecured loan.
You can also deduct the fees associated with taking out a loan, as well as life insurance premiums payable to guarantee the loan
Whilst the costs of improvement, repair and maintenance of the property are deductible, works to increase the size of an existing property, or add additional units, are not ordinarily deductible.[/i]
Brighty
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HH
