Furnished rental

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Professional Furnished Rental (LMP)
Save taxes:
Any deficits incurred by the professional furnished rental company are attributable to their overall income, allowing for tax savings.
Please note: acquisition costs generating almost all of the losses (fees, registration and stamp duties, set-up costs, commissions, etc.) follow the accounting system for acquisition costs of fixed assets. They can be allocated in full in the first year or depreciated over the depreciation period of the buildings.

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The Censi-Bouvard system
• The income generated is taxed in the category of Industrial and Commercial Profits (BIC)
• Reduction rate: 11% of the cost price of the property (this tax reduction amount must be taken into account in the overall cap on tax breaks) spread over 9 years
• Recoverable VAT
• In the event that the tax reduction exceeds the tax due by the taxpayer, the excess can be carried forward up to and including the sixth year.
• Classic Non-Professional Furnished Rental

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Classic furnished rental

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Depreciation
The movable and immovable property of the non-professional furnished lessor is subject to accounting depreciation every year:
• the furniture is depreciated on a straight-line basis over a period of between five and ten years.
• real estate assets are depreciated on a straight-line basis for their value excluding land (non-depreciable), over a period of between 12 and 60 years (depending on the elements making up the building and according to the recommendations of the client's accountant).
These depreciations are only recorded as a tax expense if the operating profit is positive and at the same level, they cannot therefore contribute to creating or increasing a deficit. The deferred depreciations are deferred without any time limit and will be used as soon as results appear allowing them to be neutralized for tax purposes.

VAT
For accommodation rented under a commercial lease to an operator of a Classified Tourist Residence or a para-hotel residence meeting the conditions for subjecting rents to VAT defined by article 261-D-4, the application of VAT at 7% on rents allows the owner to recover all of the VAT levied on his acquisition (furniture, real estate, acquisition costs, etc.)