The year 2024 is set to be rich in tax reforms for property owners in real estate. The government indeed plans several measures aimed at simplifying and optimizing the taxation on rental income. Between the micro-BIC regime, the real regime, and the Pinel law, new very advantageous schemes are emerging. So, how can you make the most of it and maximize your income? With 3 practical tips, you can navigate these reforms smoothly and adopt the most beneficial strategy for your real estate assets.
Switch to the real regime to deduct your expenses from your rental income
The real regime allows you to deduct certain expenses related to your rental property. Many of the costs incurred for your rental are deductible: notary and mortgage fees, loan interest, home insurance, property tax, condominium fees… Routine maintenance and renovation expenses are also taken into account: facade renovation, roof repairs, boiler replacement, creation of an additional bathroom…
Related reading : What is the French taxation on investments in stocks?
If you entrust your property management to a real estate agency, such as Sporting Immobilier, a company located in Toulouse for over 25 years, you can also deduct the costs of this management. Even major improvement works that enhance the comfort of your property are tax-deductible.
In short, thanks to the real regime, all your works turn into a source of savings! Note that if your annual rental income exceeds €15,000, you are automatically subject to this regime. The same applies if your property has historical significance or benefits from another advantageous tax regime.
Further reading : To avoid legal disputes with the administration, entrust your accounting to an expert
Rent furnished to benefit from advantageous taxation on your rental income
The micro-BIC regime (industrial and commercial profits) is one of the flagship measures announced by the government as part of the 2024 reforms. This simplified regime will save you valuable time. Moreover, it enjoys very interesting tax advantages for furnished rentals. Specifically, it allows you to benefit from a flat-rate deduction of 30% on your income, meaning that only 70% of your rental income will be taken into account for the calculation of your tax.
This deduction is automatically applied, without you having to justify actual expenses. This greatly simplifies your tax declaration! To benefit from the micro-BIC regime, your rental income must not exceed €15,000 since 2024. The ceiling was €77,700 until 2023. This tip is therefore ideal if you own a small studio or an apartment intended for seasonal rental. Short-term rentals are also eligible.
Have a tax advantage by investing in new properties
Another key measure of the 2024 reforms: the extension of the Pinel law. It allows you to benefit from a tax reduction when you purchase a new property intended for rental. The reduction inherent to this law entitles you to deduct 9, 12, or 14% of the purchase price of the property. In return, you must commit to renting the property for 6, 9, or 12 years, respectively.
To benefit from it, the property must be located in an area where rental demand is high. You must also comply with rent and income ceilings for your tenants. Once these conditions are met, the tax reduction provided by the Pinel law allows you to ease your cash flow by reducing your tax amount over several years. This helps to amortize part of your rental investment. It also ensures that you find tenants quickly, as these new properties are in high demand. Thus, you will optimize your rental income from the first year, in addition to the tax reduction. In short, the extension of the Pinel law in 2024 is a boon for any real estate investor.
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