Real Estate 'Borloo old'

property "Borloo old" is a tax very interesting!

Real estate Borloo former applies only to rentals naked in the former. After a binding contract with the ANAH (Agence Nationale de l'Habitat) in which you must respect the resources of the tenants, you will get a valuable tax deduction on your income property. In case of decay, your rental is eligible for additional funding in order to provide safety standards in force. But you do not have the right to rent your apartment benefiting from a device "Borloo old" to a descendant or ascendant.

The capital of a real estate investment "Borloo old" is not always guaranteed. It is subject to fluctuations in the real estate market in the area where your property. Investing in real estate is always an element of risk simply geography.

Money invested in real estate "Borloo old" is available but you need to rent your property for a minimum of six years. This period is extended by three years if your work is funded by the ANAH.

Real estate "Borloo old" reports from 3% to 8% per annum, depending on the location and size of housing. Although rents are lower than the local market, the profitability of the device "Borloo old" is interesting because of the tax exemption.

Income property real estate "Borloo old" are subject to income tax (PIT). For intermediate housing, rents are taxed at 70%, and for social housing up to 55%. In case of vacant housing back on the market, you will receive an additional 30% deduction on your income property.

The capital gain property to a device "Borloo old 'is taxable at 16% plus the 12.1% social. The capital gain property benefits from a reduction of 10% per annum from the fifth year of ownership of the property. Add to this a reduction of 1,000 euros forfeit your rental income. In fifteen years, the exemption is total.

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What to do with 4400 euros in taxes to pay?

Here are several solutions to transform the tax you pay in a more profitable investment for you.

Choose the tax exemption is one possibility, the state allows you to pay your taxes indirectly by investing in a product useful for the community.

Here are three interesting solutions:

The Finance Act 2009 gives you a beautiful gift with the Act Bouvard Censi, since the Leaseback (renting dwellings Non Professional) which is the best way to provide income in the long term (through tax-free and amortization) was enhanced with This tax reduction of 25% of the HT off furniture with legal fees.
(Depreciation for not more than the furniture).

The obvious advantage of the law Bouvard Censi is that the tenant or lessee is a professional who must make his case to fill all the apartments. It will pool the lease of his building global, it will maintain the residence and you must pay rent on a quarterly basis, that your apartment is rented or not (commercial lease of 9 years).

It is therefore very important to choose a good manager to ensure the sustainability of your income and good management.

We must emphasize that the location of your investment is important is the location that will make your manager will easily fill is also the location that will only run you will make a good deal and your pension will be sustainable.

You must be very careful about the location so as not to block your investment and the creation of your assets.

Never forget that you have an envelope of possible credit which is generally between 33% and 42% of your annual income.

It is therefore essential to choose the goods you want to get as soon as the envelope is full, it's over for a while.

That's why we ask you to set a record flash your goals and savings opportunities and to know what you have already set up to create your future additional income.

Here are three ways to reduce your taxes, for example, € 4,400 per year. (The excess reduction carried forward to future years)

1) The law Dutreil:

With the Cooperative Growth Fund, whose purpose is to help local businesses to grow, thanks to aid that transmits their holding as a loan over 5 years.

Your subscription allows you to reduce your taxes in the year of 25% of the amount of your subscription:

Example for € 4 400 tax you must purchase € 17 600.

So your tax year will be zero.

For 5 years you capitalize on your investment of dividends and 3% in 5 years you get your capital + 3% / year, equivalent to a yield of 8%
(This is no entry fee, no exit fees or management)

Same benefits through the FIP or FCIC, except that it is a lot of entry fees and management.
(Between 6 to 10% on subscription, often hidden costs. You do not know the amount of your capital at the exit and the term is on average 8 years).

2) The law Girardin industry:

It's an investment "one-shot", which aims to develop the local economy and DOM TOM.

Our partner can usually buy from € 10 000, exceptionally authorize a subscription from € 3,000 tax:

Example:

For a tax of € 4,400 of your subscription will be € 3,520 + € 61 fee
You pay your taxes now at a discount so you can not use a lot of cash now to cancel your taxes tomorrow.

You must keep your share for 5 years, but you will not offset the long term, the only gain is the delta between your investment and tax, usually between 22% and 38%, depending on the date of your investment, is not neutral.

This gives you the margin without using much of your cash.
Another advantage is that you can take, even if you have more possibilities of debt.
And finally, you can still diversify your investments with:

3) Act Bouvard Convention Bureau:

Your residence near Versailles, the company currently manages forty residences Convention Bureau in France.

The Studio 23.93 + 3.55 m2 m2 terrace and parking for a budget airline fees not act € 94 555 tax (VAT € 98,203 legal fees).
Recovery of VAT € 15 496
A monthly rent of € 289.92 HT
Charges: Property tax, condo fees and accounting approximately € 757 annual
Funding for over 20 years at 4% of your effort will be monthly during the period of tax reduction of € 200 and € 400, but by placing VAT
Is: Your average savings effort will be only € 139 monthly (€ 1,668 annually)
And your annual gain tax will be € 2,156 (or € 19 402 to 9 years)
For a term annuity of € 4,630 annual
The more your home equity by about € 105 505.
In short, you get an income tax and VAT of 6.58%
Your manager will pay the rent by 65.73%
And with your savings in 20 years will be only 27.68%
Of course throughout the period of credit, your family or beneficiaries have a life insurance protection with a disability amount.

Ask the financial projection of your personalized simulation.

Do not wait, time is working for you, regardless of the time in real estate is always a good time, especially when it is the tenants who pay the state more than 70% of your purchase.

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Support a photographer or an artist can help reduce your tax burden

A few words on a legal provision that may be of corporate executives or professionals know: Article 238 bis AB of the Tax Code

Under this provision, companies that acquire works by living artists benefit from favorable tax provisions: it can register the acquisition in their annual report for expenses, which will then reduce all their tax base.

Conditions of application of this tax benefit:
. the work must be exposed in a "publicly available" (waiting room, reception, etc ...)
. the deduction can not exceed 5 per 1000 turnover by year (it is
possible to distribute the load over 5 years maximum) and can not exceed the total payments withheld under some tax cuts.

Attention also must be it a "work of art" under the tax provisions: for photographs, for example, there will be an original print signed and numbered, limited of 30 prints of the same work all formats ...
This does not therefore apply to certain collections can be found on the market and certainly offer beautiful photographs, but numbered up to 1 / 1500, 2 / 1500 etc ... in case of tax audit, you may well see your discount rejected on the grounds that the notion of a work of art is not present.

Entrepreneurs and professionals who want to decorate your space and to support the artists, you can at the same time get a tax deduction ...

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The bearing current account: low pay and unfavorable tax

Banks offer the current account paid since March 2005. Operation is identical to the other bank and is subject to the same rules. Can be associated with this account check book, bank card and charges and in case of negative balance, the bank charges will be levied to pay current account holder.

Money that is paid on a current account is guaranteed no loss, except bank failure. In this case, the legal guarantee of deposits to cover you up to 70,000 euros, all accounts combined. Be careful if your current account is paid at a bank which France is a branch, this money into this account depend on the country of the headquarters of the bank.

You can withdraw money from your checking account paid when you want it and using it means for you: cash withdrawal, transfer or check. Deposits of money are also free and easy to achieve. The only constraint is that the banker calls the "value date". If you put money in your account, it will only be available two to three days later.

The remuneration paid to a current account is relatively small. In addition it involves only a few people in that rate, between 0.5 and 1% requires large investments of money to get interest interesting. The interest shall also be paid until a certain threshold set by the bank.

Interest paid to a current account are subject to income tax. You must indicate in the statement of income and you will be taxed according to your traditional tax schedule. By cons, if you choose to levy a 16% flat rate, plus the 11% social, the bank will retain 27% of the amount of interest before being credited to your checking account paid. These payroll taxes are payable in November each year after receipt of a notice of special tax.

Finally, know that you can deduct any bank charges relating to your current account paid.

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Tax exemption by the FCIC and FIP

How not to pay taxes or at least reduce them!

There are indeed ways to reduce your taxes or not pay. This information is not illegal, just to be well informed.
It's just one solution among many tax exemptions!

The goal is not to defraud the tax authorities, but to inform you about what we say openly avoided ... We may rail against taxes, we must admit they are needed. How else would we have our public services, our highways, etc.. ?

Even if you are taxed very little, it is certainly interesting for you. The principle is very simple: the French state since 1997 enables you to invest in some 160 funds, and already more than 3 billion euros have been invested by people who are very knowledgeable. This still represents an overall tax savings of 750 million euros!

This placement is nothing special: they are FCPI and FIP! You may have heard everything and anything about these investments?

It is true that at the launch of these, and especially during the first two years, the management of FCIC has not been very successful and the precursors of these investments were somewhat cooled. Thereafter, everything is back to normal and the situation remained relatively stable.

It has a rule for this type of product! "First come, first served! ". Yes, it is the principle of mutual fund in Innovation (FCIC) and the Local Investment Fund (PIF).

You must buy your shares before December 31st of the year.
Example: You want to reduce your taxes for 2009, so you need to invest before 31 December 2008. You will get a reduction equivalent to 25% of your bet.

I recommend you not to place the amount in FCPI to cancel your taxes if you have the necessary amount.

Example: Your income tax in 2008 likely will be 1200 euros. To reduce it to zero, given that the deduction is 25% of the amount invested, you need to place 4400 euros.

Some would say it's a lot and must have the funds! True, but you should see it in the long term (between six and twelve years).
You can go forward but it will pay a fee. Attention! To qualify for the tax reduction, you must keep the innovation funds five years. If you sell your shares before the deadline, so you should repay the FISC!

And that's not all capital gains will be tax exempt while that after five years. The FCIC provides this second tax benefit (excluding CSG, CRDS and social security contributions).

You do not have the amount available to reduce your taxes to zero? It does not matter, then put the amount you have and you will have the corresponding tax benefit!

Example: you have 2000 euros to invest, it will make you 500 euros in less tax.

Imagine that you take the option to pay your taxes: you pay your 1200 euros that will benefit the community, but you choose to never see them again!

In the second option, you save money and invest the money for your taxes, you earn interest. Some years later, you get money from your taxes, your bet and your interests.

What more?

Tip: Take the necessary information in trade magazines, Internet, etc.. To review the various programs of the past years, and preferably invest in companies that have performed well.

The goal is not for you to earn a lot but to shelter money from your taxes and recover a little more if possible.

You can now subscribe to most of FCPI via specialized sites.

Of course, it is also possible to go through a bank or directly by a management company, but you will have additional costs of around 5% against 1 or 2% live on sites, and you'll certainly less choice ...

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Deduction of actual costs: How and why?

Each taxpayer taxed on income has the ability to deduct business expenses in two ways. The automatically which is a 10% reduction or deduction of expenses if it is more interesting for him. In this case certain rules must be respected.

-The details of the charges must be stated on the last page of the tax return for the current year in the "other information". If this space is too small, it is possible to add a note to the statement attached that includes all the explanations.

-Supporting documents must be kept by the taxpayer for 3 years. It is therefore very important to keep the bills for travel expenses, the cost of vehicle maintenance, etc ...

-Taxpayers may deduct only the expenses related to professional activity. The costs for private should not be considered.

-The expenses incurred must be paid in the year of taxation. If this is not the case, see some costs on the statement of the following year.

-The cost of traveling between home and workplace are part of the actual costs to be deducted. If this distance exceeds 40 km, only the distance will be taken into account. The excess kilometers will be deductible if the taxpayer can prove that it performs the route for specific reasons (difficulty of finding a job close to home, changing health status of the employee or spouse ...) and not for personal reasons. In this case, a single round trip is deductible. The round trip for lunch will be considered only in special cases.

-Parking fees are deductible.

-The toll fees are deductible.
-Moving expenses are deductible to the extent that it results in obtaining a new job.

-The cost of education, training and documentation are deductible.

-The jobs requiring special outfits are able to deduct the cost of dry cleaning.

-The union dues are tax deductible.

It is especially important to remember that the actual costs require the taxpayer to keep his documents for a period of three years after payment.

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Taxes on income: Salaries and Wages

Salaries and wages are amounts received as compensation in connection with an employment contract between an employee and an employer. However, some income may be taxed and others are not.

-The taxable income.
The first is the amounts received by an employee operating such salary, bonus season, tips, etc. ...

Employees on sick leave or maternity must report the amounts collected during the current year.

Job seekers also state unemployment benefits, whether total or partial.
Retirees are not spared and their benefits are taxable.

-The non-taxable income.
In general, the tax-free are those that are not in nature of income tax within the meaning of the term.

Such as special allowances to cover the costs of employment such as reimbursement of actual costs.

This family benefits such as family allowances, housing allowances, allowances for disabled adults etc ...

Other benefits such as income Minimal Integration RMI allowance, return to work, the RSA active solidarity income or the personal autonomy allowance is exempt from income taxes.

Wages paid to apprentices, if they do not exceed the sum of 15,852 euros in 2008 (annual amount of the SMIC), are also exempt from income taxes in 2008.

Finally, certain amounts received by taxpayers are exempt from taxes. These relate to amounts received such treatment attached to the Legion of Honor, the deferred wages of the heir of a farmer, paid by the company in relation to an employee savings plan, but also benefits paid internship for a student to a maximum of 3 months.
Are also exempt scholarships awarded by the state, gifts of small value assigned by an employer to an employee at a family event.

Finally on 1 October 2007, overtime worked by the employee are exempt from income taxes. As against the money for the purchase of RTT are subject to income tax. Only social withdrawal are exempt.

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Benefits in kind: Are they taxable?

Fringe benefits are taxable just like salary. These are goods or services provided by the employer free of charge or at prices below their real value.
These fringe benefits are subject to specific tax rules from 1 January 2005.

Several cases of fringe benefits should be considered:

-The tools of the new information technologies and communication.
Clearly it is for the employee to own a mobile phone or a computer paid for by his employer. This benefit in kind is in fact not said when the use of these devices by the employee as an individual is considered negligible by the employer. The benefit in kind if not declared on a flat rate of 10% of the total units available to the employee.

-Regarding the provision of meals to the employee, the benefit in kind is a flat rate set at 4.25 euros per meal for 2008.

-The benefit in kind for accommodation of the employee may be determined on the basis of a fixed salary depending on the person or from the rental value of housing.

Finally, the professional vehicle available to the employee for personal needs must be a benefit in kind. This is determined either by the basic social package is based on actual expenditures. In principle, a kilometric scale determines the amount of benefit in kind to be reported based on miles traveled by the employee personally.

But some are paid to employees by their employers are not considered as a benefit in kind. For example the accommodation available to policemen and their families, meals for instructors summer camps and educators for children with disabilities or exceptional gifts and unrelated to the profession made to employees and whose value does not exceed 139 euros in 2008.

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The levy: For fixed income, but under what conditions?

The withholding tax is a withholding of certain fixed income financial products. Until 2004, the levy was devoted to the products of fixed-income investment. Since 1 January 2005, the withholding tax under certain conditions extends to products such as those from the European Community or European Economic Area. The amount of all such products subject to withholding must be worn on the reporting of income tax on page 2, lines EE and DH.

The levy is an option you should choose each year at the latest at the time of redemption for fixed income products include:

State funds, bonds, equity securities and other debt instruments issued by public or private French, payments of salary funds, certificates of deposit issued by banks, deposits and current accounts , good capitalization and similar, redemption premiums relating to bonds or debentures issued in France on 1 June 1985, commercial paper, certificates of deposit, purchase of specialized financial institutions and Treasury bills account power and good financial companies. Namely, these products should not be taken into account in determining taxable income of an industrial, commercial or noncommercial profession.

The levy is an option. You must apply to the bank that handles your movable capital.

In some cases, the withholding tax is applied automatically. These include products such as treasury bills, savings bonds of the Postal Bank, the good of the national fund of Crédit Agricole, the right to five years of participation in the development of the mortgage market issued by Crédit Foncier de France, bonds issued by regional groupings of savings and pension payments and account books. But you always have the right to remove the levy and to choose the income tax standard.

Be aware that taxpayers imposed in the range of 14%, that is to say a taxable income of less than 24,872 euros for a single person (including income from savings), have an interest to waive withholding.

The withholding tax of 27% is a choice. You can switch plans every year in case of changes in your overall income and include your savings products in your taxable income.

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Belgium: Renovation vs. Construction - VAT rate

It is not always easy to determine whether the work done in a private dwelling must be regarded as work for the purpose of processing or renovating an old building, may benefit from the reduced rate of 6% or as work aimed to build a new building subject to the normal rate of 21%. This is a factual situation which must be considered on a case by case basis.

The doctrine considers that the administrative work of transformation are both the outer transformation of a building and its rehabilitation notably the inner transformation of the building or expansion by adding new parts and extension of existing parts. It operates, in addition, the following distinction:

- Are considered renovations eligible for the reduced rate of 6%, the works that rely significantly on old load-bearing walls, including exterior walls, and more generally on the essential elements of the structure of to renovate the building. It can be seen that this condition is met when at least half of the former load-bearing walls is preserved after the execution of works.

- Are, however, considered the construction work subject to the normal rate of 21%, reconstruction after demolition of a building, even if the maintenance of foundations and cellars of the old building and related components its structure such as the only crane in front of street maintained for reasons of integration into the urban fabric.

News
A taxpayer renovate a wing of the building - originally made up of a dairy, barns and stables - and transforms it into private homes equipped with the comfort level electrical and sanitary. The question before the court of first instance of Liège is whether this work can benefit from the reduced rate of 6% or must be subjected to the normal rate of 21%.

The court agreed with the taxpayer. For the judge, the subject of the work consists of the simple transformation of an existing building and not the erection of a new building after demolition work since at the time, the building was not in ruins, destroyed or and had retained all its exterior walls and bearing walls. The magnitude of the work, ultimately, following the discovery occurred during construction, is justified only by the age of the building and geotechnical constraints at the origin of the poor condition of existing walls.

It follows from these that the purpose of work is to provide an improvement to the existing building with the sole intention to enhance the architectural heritage it represents, and assign it to private dwellings. The legal requirement for renewal must be understood in the sense of development of the property remains as such.

Comments
Disputes over the application or not the reduced rate of 6% on the renovation of old buildings are common.

The court of Liege reminds us again that administrative circulars are not legally binding and that the interpretation given by the Administration is only temporary. In other words, administrative decisions are not binding and are only recommendations to be assessed on a case by case basis.

Source
First instance court of Liege - October 4, 2007

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Help with tax returns

Completing the tax return to avoid errors and omissions?

The tax return each year is a real journey for us ordinary citizens. From 2042 to 2072 RA-K, it is not to be mistaken, and especially to avoid errors, otherwise the tax will quickly send us a proposal for rectification or redress.

But do not worry because after all, with a little patience and knowledge, the filling of the annual tax return is an exercise done without too much difficulty.

We must first consider the news and God knows each year brings. Media such as print, radio and especially television news talk every year in connection with taxation and tax exemption. So we need to listen and write down all the elements necessary for the tax return. The technical instructions sent with the form is completed also valuable information on the statement, but reading these documents is quite difficult and I confess not very intuitive.

Start with the 2042 for only marital status and income of you and your spouse if you have one. You take the opportunity to declare all your expenses for charges to be deducted or tax deductions.

If you received additional income, you should use the printed 2042C.

As for the leaf numbered 2044, it has to do with property income if you rent one or more apartments.

If you own shares in a property investment partnership, you must use the declaration of 2072 as well see the money in a certain place in 2044, the sum is itself to be carried on in 2042.

But not to worry because often if you make a mistake, the tax authorities to contact you (even for an error in their favor), and allows you to correct without penalty.

Nevertheless, the tax return is a must in our lives as citizens and its many aid available.

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The license fee

The license fee is a compulsory tax. In some cases, you can get the exemption.

The license fee is a tax on receiving TV channels in your home. Whether you have one or more receiving stations, you will pay the license fee only once. By cons, if you have a DVD player or any device containing a tuner connected to a monitor, you must pay this tax. Please note that if you opt for an Internet subscription included with the television, you are exempt from the license fee (for now at least).

License fees since 2005 is associated with the tax. So, whether you own or rent, this tax is for you. Very important: the fee is due for a tax household and only one, provided that each member will be attached.

In the case of a rental property, several cases are possible:
1) You rent a furnished apartment to a tenant which is the principal residence. It is the tenant to pay the tax even if the receiver does not belong.
2) The receiver is leased by the lessor to a company. It is the landlord who pays the fee.
3) For rentals of real estate seasonal license fee must be paid by the lessor and must occur in the same frame as the VAT.

The amount of the license fee is set by the tax authorities: In 2006, it is 116 euros. Like the housing tax, you can opt for the monthly payment and you will be penalized 10% for late payment. Assuming that each tax household has a television receiver, the tax is provided on the annual tax return a check box only if you do not have a TV.

In some cases, you may be exempt from the license fee: mainly in cases of tax exemption for housing, but if you have the RMI (minimum income), or if a member of your household is disabled and is not itself liable for the tax.
People aged over 65 are now liable to pay license fee if they return to the normal payment of taxes.

This tax is often criticized because it was diverted from its original purpose, is now expected to finance the TV public service.

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Declare the income tax: must complete the tax return?

Every year it's the same story, complete the statement of income taxes. Tedious task for most of us, even an ordeal for some, the statement of taxes is still required.

Tedious task for most of us, even an ordeal for some, the statement of taxes is still required. Between the incomes of wages, property income, those from shares of real estate company, deductions, reductions or tax credits, there is something to lose. Some would therefore lead to the conclusion not to complete the declaration and be forgotten by the tax authorities. Absolutely not! You must complete the declaration.

But in fact, must complete the statement of income taxes?

-All persons resident in France, whatever their nationality, must complete the tax return, provided that their tax home is in France. This requires that taxpayers stay at least 183 days per year in France.

-All persons exercising a professional activity in France, employed or not, that is regular and effective. Self-employed persons must have a fixed home base in France.

-All persons who have economic interests in France, investments or property.

-The officials or agents of the French state who practice a profession abroad. If these people are not taxed in the country where they are in employment, they must complete the declaration of income tax even if they do not live in France.

-Some people who are not resident in France are also subject to the reporting of income taxes. These are people with at least one residence in France or other persons with incomes of French origin. People who have one or more residences in France are taxed a flat rate equal to three times the rental value of homes or on their income or of French origin. Those who have no residence in France are taxed on their income of French origin.

Very important: People who touch the Revenu Minimum d'Insertion (RMI) or those with no income could dispense with the declaration of taxes. But it is advisable to fill in order to have a notice of non-taxation. This notice will allow them to obtain some benefit or welfare of the premium for Employment.

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Deduct the interest on loans from his residence: A fiscal, social, popular

Announced as a priority tax by Nicolas Sarkozy, the possibility for a person wishing to become a homeowner to deduct interest on loans related to the purchase of a property will be available next September.

The deduction of loan interest for the acquisition of real estate so far as is possible for rental housing. This is part of the tax deductions that can lead to a shortfall in land. The owner or lessor must complete the declaration in 2044 on property income. Other deductions are also possible as the work or property taxes.

But Nicolas Sarkozy wants to extend the possibility of deducting interest on loans to individuals who want to become homeowners. Currently, 50% of French people are in this case. The purpose of this measure is to increase this number to 70% as soon as possible.

In addition to the tax side of the measure, the new government of Nicolas Sarkozy shows the social aspect of such a proposal. In addition to the Act Borloo that allows home buyers to 100,000 euros, this should enable the construction of social housing in large numbers and to ensure that their occupants become owners.

The loan interest deduction for primary residence, however, faces some uncertainty. First, there exists a cap on that? Probably yes, but how high? Then what will happen there for tax-payers? Probably a tax credit but how much? Finally, this measure does allow property prices to curb inflation, the constant for about ten years? It is very possible!

In any case, this measure will allow the most modest to deduct loan interest of his principal residence or to obtain a tax credit and thus to access the property is a measure of both fiscal and social and especially popular!

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Reform of calculating the capital gain tax.

A reform of calculating the capital gain property has just been decided in a brutal way. It does not apply to primary residences (one possible) but unoccupied units, rental property, building land and the share of SCI. Previously, the gain was calculated by performing a reduction of 10% per year after the sixth year of ownership. ie after 15 years, there was total exemption from capital gains tax.

Owners of rental investment will consider that the rules are changed during the game. Those who had calculated a possession for 15 years before undertaking a major project will be unable to achieve. Only an increase in selling prices, including the new capital gains to pay can solve the problem. It is therefore to fear an increase in property prices, which was not the intention. We can expect amenities like many fiscal measures taken recently at the cost of a serious political disrepute.

it is expected as deviant practices on the payment of the purchase price, which will skew the statistics on sales prices in real estate. In a time when clarity is demanded by the economic actors, we may have run out of financial discipline. once again, to solve an urgent problem, we apply immediate action without measuring the consequences. The rental market is the main French private park. small investors who had offered their properties on the market will pay the price. Public finances will have to compensate for a lack of rental housing and the result is a worse note to be paid by taxpayers.

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Income tax reference and tax exemptions

Income tax reference provides relief and tax exemptions. For example, to be totally exempt from housing tax, income tax reference should not exceed 9437 euros in 2006, plus 2520 euros per additional half-unit and 1260 euros per shift additional share in the case of shared custody children (other conditions being completed, including age and cohabitation).

Income tax reference depends on the number of shares of the tax household. The amount is on the tax notice for 2007.

Income tax reference contains the net taxable income plus capital appreciation potential.
The income tax is increased by reference the following products:

- Products of fixed income subject to withholding
- Reduction (40% for 2006) on the earnings distributed by the fraction exceeding the fixed allowance
- Wages and salaries received by employees seconded abroad
- Income of officials of international organizations
- Income exempt under a tax treaty
- Compensation of employees and officers seconded to France
- Compensation of elected officials subject to withholding
- Deductions and exemptions from the companies installed in new areas of land
- Exemptions for business profits of companies operating in urban zones and Corsica
- Products and gains from sale of shares of mutual funds (FCPR)
- Distributions of profits by venture capital companies (SCR) and capital gains from the sale of these companies
- Distributions of profits from sole proprietorships to investment risk (SUIR)
- Tax-deductible contributions, paid on a PERP or a like system
- Deducting the total income: acquisition of shares of joint ownership of commercial vessels or commercial or investment overseas
- Loss in the capital subscription of new companies

Income tax reference can therefore benefit from certain tax exemptions and reductions but above all without completing his statement that nothing is overlooked.

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