If your heritage account for more than 1.3 million estate, you are liable for the tax on the real estate asset.
Emmanuel Macron has confirmed on December 10 that it does réinstaurerait not the ISF (impôt de solidarité sur la fortune) next year. On the other hand, the IFIS (tax on the real Estate asset), in place since January 1, 2018, will continue to be set by individuals with a heritage of important real-estate.
What should you declare ?
Technically, the taxable asset to the IFI incorporates all of the real estate : principal and secondary residences, rental apartments, land, walls of shops, offices… “Only those that are used in the context of a professional activity out of the taxable base for this tax”, explains Jean-François Desbuquois, associate attorney at law firm Fidal. If you have subscribed for units of REITS (real Estate Investment trusts) and OPCI (undertaking for Collective Investment in real Estate), you will need to add the fraction of the real estate they hold.
once your asset value is calculated, you défalquez your liabilities, that is to say, all of your credits. Attention, all the debts are not deductible. “Only those subscribed by the person liable for the acquisition of goods or in the interest of the taxable asset (maintenance, improvement,…) are taken into account to the extent of the taxable portion of the property,” says Christophe Chaillet, director of wealth planning at HSBC France. The family’s debts, contracted from your loved ones (parents, spouse…) can only be deducted if they fall within the scope of “normal”, that is to say, if they are repaid by monthly instalments with interest.
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Another point to be aware of : credits in fine (repayable in full at maturity) are now fiscally considered as depreciable. Their deductibility is therefore no longer integral, but partial, the fraction credited with being regressive with the time.
Finally, the amount of all the liabilities taken into account is capped for taxpayers who report more than five million euros. “For them, the fraction of the loans that exceeds 60% of the value of their taxable asset, is deductible only for half of it”, specifies Jean-François Desbuquois.
Decrease its taxable base
the value of The taxable asset to the IFI is assessed as of January 1st, if you want to reduce your tax in the year 2019, you therefore have until 31 December to lower your taxable base. First of all, don’t forget to apply discounts, some of which are legal, such as that of 30% on the value of the primary residence. Other discounts are allowed by the inland revenue, which allows taxpayers to apply for abatements on their real estate assets to “liquidity”. Thus, property held through an SCI (société civile immobilière) with multiple partners, or are housed in a large joint, will be less liquid than those in which you are the sole owner. In practice, the more the sale may be complex and long, the more the discount is high, it goes from 5% to 25% on average.
another strategy, which may not apply if you help a child or parent in need, is to make him a donation of the temporary usufruct of a rental apartment. Advantage for him : “it will affect the rents, and will thus be able to supplement his income students or his pension,” explains Christophe Chaillet. Advantage for you : the housing will come out of your taxable base to the IFIS for the duration of the break, since it is the beneficiary who is liable to pay this tax.
Finally, if you want to put a stake in the property before the end of the year, to avoid increase in your wealth in a taxable purchase of the shares of GFF (Groupement Foncier Forest) or GFV (Groupement Foncier Viticole). The first benefit of abatement of 75% on their taxable value, the latter from 75% to 101 897€ and 50% beyond.
A specific rule for property abroad
If you are a resident for tax purposes in French and have a house or an apartment in a country other than France, these assets are taxed at the IFI (tax on the real estate asset). On the other hand you will escape this tax if you are non-resident French tax.
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The IFIS, the Tax on the real Estate asset, the ISF version Macron
Tax on real estate asset: make a donation, the inland revenue you will make it The wealth tax on the estate has brought in more than expected in the last year With the reform of the ISF, donations to associations collapsed in 2018
To encourage taxpayers fortunate to get back in the hexagon, the rule of the impatriation has been put in place. “It is only for people who have not been French tax residents the French during the five calendar years preceding that of their return,” says Christophe Chaillet, director of wealth planning at HSBC France. Benefit for them : when they pay their taxes in France, their immovable property held abroad go out of their taxable basis to the IFA for five years.