If you made a Pinel investment, you must report your transaction to the tax authority, which is a statement you will make in your annual income tax return. This way you can enjoy a tax exemption of 12%, 18% or 21%, depending on the lease term you choose (6, 9 or 12 years).
The following is the necessity to complete the tax return after investing in Pinel.
When should I declare an investment in Pinel?
In order to enjoy the tax exemption of Pinel equipment, you must declare your investment in the year after you receive the property, that is, the year after the work is completed. After taking the first step, you will make a Pinel statement every year.
This year, the deadline for submitting paper income tax returns is May 19, 2015. If you choose to submit your tax return online, you must submit it by May 19, 2015, June 2, 2015, or June 9. To your home address.
What administrative forms are provided?
To declare your Pinel tax exemption on your annual income tax return, you need to attach certain administrative forms:
-cerfa 2044-EB proves that you are committed to renting your new property for one of the following supervision periods, 6 years or 9 years or 12 years. You only need to fill out this form when Pinel declares for the first time.
-Cerfa 2044 or 2044-SPE, which contains your property income statement. This will be the property balance sheet of your Pinel investment, that is, the rental amount from which various fees, charges and taxes are deducted. After deducting the land deficit, the land profit will be added to your overall taxable income.
-cerfa 2042-C, including additional income declaration. The Pinel allowance will then be calculated based on this statement.
What supporting documents should be attached to the declaration?
Certain documents must be associated with your statement to prove that your transaction is reasonable. Therefore, for the purchase of your property, you will provide proof of ownership, a real contract, and proof of payment of contract costs. For your housing loan, you will show the loan amortization table, the total amount of loan interest paid and the total amount of loan insurance.
For the rental of the property, you will show the lease agreement in the name of the lessee, and show the surface of the property without forgetting the fixed rent. Detailed information on management fees and rent insurance are also necessary. Finally, in order to prove the identity of your owner, these documents will involve property taxes and property expenses.
What should I do if I encounter an inspection?
If you are inspected by the tax authority, you must present certain documents, such as a work completion certificate (DAT) and a lease contract for a tenant who lives under the Pinel system. Please note that all these documents must be submitted in their original form.