Starting in a real estate investment opens up rights to tax reduction, including tax incentives. Which tax relief devices are available to you in 2020? We take stock of the laws related to real estate investment and tax tax.
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- Real estate investment to tax tax Tax
- in Pinel law
- The Censi-Bouvard device
- The conditions of the Censi-Bouvard system:
- Tax tax with an investment in the old
Plan de l'article
Real estate investment to tax
In 2020, devices allow you to benefit from a significant tax reduction , to finance your real estate purchase. We’re talking about the Pinel Law, an incentive to real estate investment in the new.
Tax tax in Pinel law
Investors know this well, it is THE most popular tax system in recent years and extended until 2021. Replacing the Duflot law, he arrives in the right line of other devices such as the Borloo law, the Robien law or the Scellier law. Its principle is simple:
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- You buy new housing;
- You rent your home in accordance with the tenant’s rent and income ceilings;
- You can benefit from a tax reduction corresponding to a percentage of the purchase price of the home;
- You collect 12% on a rental over 6 years, 18% on a rental over 9 years and maximum 21% on a rental up to 12 years.
Conditions apply in the Pinel tax tax device:
- Location : Pinel zoning must be respected at the time of purchase of the property: zone A, zone A Bis and zone B1;
- Duration of the rental : it is strictly regulated, and more advantageous than the Duflot law;
- Status of the dwelling : the tenant must make your dwelling its principal residence;
- Rents : a resources/income limit is to be respected under penalty of being liable to the tax authorities.
- Standards : Accommodation must meet the latest standards in force to be eligible Pinel.
The attention of the future owner of an eligible accommodation in Pinel is particularly drawn to the fact that failure to comply with these conditions can have serious consequences. Think about anticipating : unpaid rent, conditions of granting, rental conditions, presence or not of a tenant, evolution of the rental market, etc.
The profit to be earned when embarking on a real estate investment in tax is very advantageous for investors. In addition, you can invest in a maximum of 2 dwellings per year , with a ceiling of 300,000 euros of investment, and 5,500 euros per square meter (living area).
The Censi-Bouvard device
This measure is complementary to the status LMNP (Unprofessional Furnished Lessor) and allows in particular to invest in a housing located in a service residence. Student residence, tourist residence or EHPAD… You will recover the advanced VAT when purchasing the accommodation.
The conditions of the Censi-Bouvard device:
- You must make your new real estate purchase before December 31, 2021
- ; Your commitment: renting the accommodation for 9 years;
- The limit of the cost price of the property must be a maximum of 300 000 euros;
- In return, the tax benefit will be 11% of the price of your investment without taxes;
- This tax reduction is spread over 9 years;
- If you comply with these conditions, you will recover 20% VAT .
The rate of return of the device is interesting for real estate investors. Moreover, rental management is done externally: a bonus for you.
Tax tax with an investment in the old
Thanks to the Malraux law and the Historic Monuments Act, if you are heavily taxed, you can tax tax at a height advantageous for you.
The Malraux law you makes it possible to invest in old housing and part of the heritage. You carry out work to rent, then you deduct from your total tax income all expenses you have incurred for your work (up to a limit of €100,000 per year).
The Historic Monuments Act is aimed at the greatest fortunes, strongly imposed. Passionate about catering? Launch into this investment that allows you to deduct the amount of the works, but also the interest on the loan associated with it. It is good to know that this scheme does not provide for a tax reduction ceiling . You are also not obliged to rent the accommodation but can live there.
is up to you to choose the right tax product for your situation. Before embarking, it is strongly advised to be advised It in order to fully understand the ins and outs of the taxation of these devices.