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Taxation of the rental of a property held by an SCI
Renting an SCI
In most situations, we are in the presence of an SCI formed between the members of the same family. The SCI is subject to the regime of partnerships, subject to income tax on its results taxed in the name of the partners (in proportion to their rights in the share capital) and not to the SCI.
Naked rental
Rents are taxed at income tax in the category of property income in the hands of the partners in two ways:
• Either in a "micro-land" regime under three conditions: the partner is also the direct owner of at least one building given for bare rental, none of the buildings held by the SCI is in an investment (excluding DUFLOT PINEL or SCELLIER), and that the amount of rents received does not exceed 15,000 euros. A flat-rate allowance of 30% representative of all property charges reduces the amount of rents. Only 70% of the rent amount will be taxable. No specific declaration to file.
• Either in real regime: taxable rents are determined after deduction of the various property charges for their real amount (management and custody costs, maintenance, repair and improvement expenses, provisions for condominium fees, insurance premiums, local taxes, loan interest). A 2044 declaration must be filed.
Furnished rental
Rents withdrawn from such an activity are qualified as commercial. The SCI is taxed for all its results at corporation tax unless cumulatively the furniture does not belong to one of the partners, the furnished rented housing is the subject of separate agreements, and the SCI rents the furnished premises at the same price as the bare premises.
If the SCI rents both bare and furnished premises, what about it? The tax authorities admit that if the amount of revenue from furnished rentals does not exceed by more than 10% the amount of revenue collected for bare rentals, the SCI does not switch to corporation tax.
Naked rental
Rents are taxed at income tax in the category of property income in the hands of the partners in two ways:
• Either in a "micro-land" regime under three conditions: the partner is also the direct owner of at least one building given for bare rental, none of the buildings held by the SCI is in an investment (excluding DUFLOT PINEL or SCELLIER), and that the amount of rents received does not exceed 15,000 euros. A flat-rate allowance of 30% representative of all property charges reduces the amount of rents. Only 70% of the rent amount will be taxable. No specific declaration to file.
• Either in real regime: taxable rents are determined after deduction of the various property charges for their real amount (management and custody costs, maintenance, repair and improvement expenses, provisions for condominium fees, insurance premiums, local taxes, loan interest). A 2044 declaration must be filed.
Furnished rental
Rents withdrawn from such an activity are qualified as commercial. The SCI is taxed for all its results at corporation tax unless cumulatively the furniture does not belong to one of the partners, the furnished rented housing is the subject of separate agreements, and the SCI rents the furnished premises at the same price as the bare premises.
If the SCI rents both bare and furnished premises, what about it? The tax authorities admit that if the amount of revenue from furnished rentals does not exceed by more than 10% the amount of revenue collected for bare rentals, the SCI does not switch to corporation tax.
Good to know
Capital gains on disposal are calculated from the initial purchase value, net of accounting depreciation, etc. this is the black spot of an SCI at the SI.
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