If you make a Pinel investment, you must report your operations to the tax authorities, which you will report on your annual income tax return. This gives you a tax exemption of 12%, 18% or 21%, depending on the lease term you choose (6, 9 or 12 years).
Here’s how to complete your tax return after investing in Pinel.
When should I declare my Pinel investment?
To enjoy the tax exemption for Pinel equipment, you must declare your investment in the year following the year you receive the property (ie the year following the completion of the work). After taking this first step, you will file a Pinel statement each year.
This year, the deadline to send paper income tax returns is May 19, 2015. If you choose to file your tax return online, you must follow up at your home address by May 19, June 2, or June 9, 2015.
What administrative forms are required?
To claim Pinel tax exemption in your annual tax return, you need to attach certain administrative forms:
– cerfa 2044-EB, attesting to your commitment to rent your new property for one of the following regulatory periods (6, 9 or 12 years).You only need to complete this form during your first Pinel declaration
– Cerfa 2044 or 2044-SPE containing your property tax return. This will be the land balance sheet for your Pinel investment, ie the amount of rent collected after deducting various fees, charges and taxes from it. Property benefits are added to your total taxable income when the property deficit is subtracted from it.
– cerfa 2042-C, which contains the declaration of additional income. The Pinel allowance will then be calculated from this statement.
What supporting documents must be attached to the declaration?
Certain documents will be associated with your claim to justify your actions. Therefore, for the purchase of your property, you will provide a certificate of title, a true deed, and proof of payment of the deed fee. For your home loan, you will provide the loan amortization schedule, the amount of loan interest paid and the amount of loan insurance.
For the rental of the property, you will present the lease contract and the surface of the property in the name of the tenant without forgetting the fixed rent. Details of management fees and rental insurance are also required. Finally, to prove your status as an owner, documents will cover property taxes and property fees.
What if it is controlled?
If you are inspected by the tax authorities, you will have to produce certain documents such as the Declaration of Completion of Works (DAT) and the lease agreement of the tenants who live in the Pinel. Note that all these documents must be submitted in their original form.