Start signal. All taxpayers with real estate assets of more than EUR 1.3 million must complete their property tax return (IFI) at the same time as their income tax return. The deadline is between May 24 and June 8, depending on the department of the residency. So there is still a good month for the 140,000 households involved to roll up their sleeves. Because in contrast to the return, which is largely completed in advance by the Tax Authorities, the IFI really asks the taxpayer to do substantive work.
On January 1, 2022, he must estimate his own assets and debts, calculate the tax to be paid and complete his tax return online. A delicate exercise: you have to find the right balance between a tight assessment to prevent your taxable assets, and therefore the tax owed, from being inflated, and a clear understatement that can lead to recovery. “Do not hesitate to use all available means to evaluate your property, recommends Patrick Janel, the private management manager of the consultancy Equance. The Patrim site of the tax authorities, so that you can consult recent sales in your area from your VAT number .
Discounts and exemptions
The main residence benefits from a reduction of 30%: the taxpayer therefore only registers 70% of its value in its tax return. Other real estate (second home, rental home, parking lot, warehouse, etc.) can benefit from a discount in certain cases. “There is no precise rule for real estate investment, but rather a market practice,” specifies Marion Calmette, deputy director of asset engineering at Société Générale Private Banking. Case law has accepted a discount because leased assets are not as liquid as empty.”
The discount, usually between 10% and 15% of the property’s value, is justified because the owner probably couldn’t sell it at market value since it is occupied. The same reasoning for co-owned properties: a family home of brothers and sisters can also legitimately be the subject of a reduction.
Professional real estate properties are exempt from IFI, while forests and woodlands and rural properties that are leased are 75%. “The real difficulty is in estimating the representative value of the real estate assets held through a company,” specifies Marion Calmette.
The latter’s shares can be excluded or exempt from IFI when it is a professional property, but the conditions that must be met are many.” Conversely, the declaration is extremely simple for SCPIs, these investment collectives that invest in real estate, as company directly the taxpayer provides the amount to be declared in his tax return.
Liabilities and donations
It then remains to assess the debts. “Only debts that correspond to assets covered by the IFI can be deducted,” explains Sandrine Quilici, director of wealth engineering at Pictet Wealth Management. % of the debt incurred to finance them can be deducted as liabilities.” It is also necessary to count the loans of the main residence, rental housing and the property tax of the various properties. “Beware of debts that fall within a entered into a business for the sole purpose of reducing equity, so its valuation at the IFI, adds Sandrine Quilici. The legislator accurately lists the obligations that are considered fictitious in order to prevent abuse.
And the taxpayer’s job doesn’t stop at calculating net taxable assets – assets minus liabilities. It is up to him to assess the amount owed to IFI by applying the scale per tranche, at rates up to 1.5%. He will receive an assessment notice in August and must pay the tax authorities before September 15. However, it is possible to make a donation: donations to foundations recognized as being of public benefit or to research or higher education institutions give rise to an IFI reduction of up to 75% of their amount, within the limit of a tax benefit of 50,000 euros. You must make the donation before submitting your tax return. In 2020, 18% of taxable households opted for this solution instead of paying this tax.
Finally, the total amount of income tax 2021, including social contributions and any special contribution for high incomes and IFI 2022, on the other hand, may not exceed 75% of the total that the taxpayer will receive in 2021. , the deductible is charged to the IFI.
The practical case
A couple with a main residence worth 2.1 million euros. The credit will be refunded. After a 30% reduction, it falls under the 0.70% marginal bracket. IFI: 3,647 euros.
Agnes Lambert