In the world of real estate investment, there are different ways to take advantage of the tax system to amortize its investment. As the name suggests, the holiday rental is unprofessional for a population of individuals wishing to invest in cement. Conditions relating to the investor profile are then required. The purpose of the investment must also obey certain rules for the qualification. Finally, the investor will receive a tax cut.
Purpose of the tax exemption
The purpose of the tax exemption holiday rental unprofessional is behind an initiative of legislators willing to support the efforts of private real estate investment. Schematically, it all starts with the acquisition of a building in a residential service. As the property is for lease, commercial lease for a term of 9 years will then be signed with an operator of the residenceIt is this provider who will pay rent to the investor's net operating expenses.
The interest of the investor to build wealth by taking advantage of tax cuts that will absorb some or all of the investment. All taxpayers are eligible for this classification. Thus, the motivations of investors can be very diverse, creating wealth at retirement supplement through a savings scheme.
Leaseback as an investment.
An investment is a substantial capital investment in order to benefit from future appreciationIn the case of the holiday rental unprofessional, be aware however, that the investment is not guaranteed. Indeed, any price drop in real estate will inevitably affect the value of the property.
The capital is available, however, because the investor may sell the property at any time. Calculations also show that the investor can expect a rental yield of about 4%In the long run, real estate speculation is permitted, in the hope of future gain.
Nature of the building
To enjoy the tax exemption, the property is subject to certain rulesInitially, the building will serve as a residence services. It will also be new or refurbished over a period of less than 15 years.
The classification of residential service requires a well to provide at least three of the following services: reception, breakfast, linen supply for residents and regular cleaning of public areas.
Generally, three categories of residence are listed among the residences of Service: student residences, tourist homes, and establishments providing accommodation for the elderly.
The tax benefits
The tax benefits of the holiday rental business is not classified in the category of business profits. The investor can then deduct all expenses from the rental of taxable income (interest credits ...).
The great attraction of this approach remains the tax reduction under the Act Bouvard Hundred granting an abatement equal to 25% of the value of the investment without exceeding € 300,000This reduction will be spread over a period of 9 years.
As for the return on VAT, rents will be subject to VAT at 55%In practice, VAT will be refunded with the start of the rental of the building. |
