Furnished rental: change tax in 2018

The project of Finance law for 2018 plans to increase the thresholds in the regime of micro-BIC. The landlords renting a property furnished should they opt for this plan?

Regarded as less restrictive and more cost-effective than the rental naked classic, carried by the platforms of line rental for short tourist stays (Abritel, Airbnb, and others), the furnished rental has the wind in its sails from the owners donors. Fiscally speaking, the regime that applies to income derived from the rental differs according to the type of tenancy is practiced: the rents collected in the framework of the furnished rental must be declared as industrial and commercial profits (BIC), while those renting empty land revenues. "In both cases, one can choose between the regime of real or simplified regime, the micro-BIC or micro-foncier", recalls Eric Ninu, commercial director iSélection.

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new thresholds for the micro BIC

from next year, new provisions should apply. Article 10 of the draft Finance law for 2018, provides a significant increase in the ceilings of turnover or revenue of the simplified micro-BIC. Objective announced by the government: to simplify the lives of entrepreneurs, whether they are craftsmen, merchants or professionals. Result: for rental furnished, the threshold is increased so 33 200 euros to 70 000 euros per year for the furnished rentals off rentals classified and 82 800 euros to 170 000 euros per year for the furnished rentals that are seasonal that are classified.

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The micro-BIC applies automatically as long as the amount of the gross rent received does not exceed a certain threshold, 33 100 euros a year in 2017, is still more than 2 700 euros per month. The taxable profit, determined after an abatement of 50%, or 16 € 550 rent ceiling is imposed on the income tax. In addition, if the rents are lower to 23 000 euros, plus 15,5% of social contributions (rising to 17.2% next year subject to the vote of the Finance bill), calculated on the amount of the rents after abatement.

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The plan real most interesting tax - ...

These new thresholds will encourage donors to opt for the micro-BIC? Not sure at all. "The micro-BIC is certainly more simple in practice, but the scheme real is fiscally much more interesting, reminiscent of Maud Velter, associate director and legal director of the group Lodgis specialises in furnished rentals.

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The system allows real-to depreciate the value of the property (excluding land), the loan interests, if any, as well as the fees and charges (insurance, agency fee, etc) of the rents received over 10 years ago." In total, this amount can quickly exceed the amount of the 50% reduction expected in the case of the micro-BIC. As a result, a slate of tax cleared, while maintaining the cash flow of the rents collected. On the other hand, the necessary administrative measures, tax and accounting, are much more time-consuming: it is better to have recourse to an accountant.