taxpayers Those subject to the IFI (French wealth tax) must declare their real estate assets on a specific form attached to their income tax return: form 2042-IFIThe Real Estate Wealth Tax (IFI), which replaced the Solidarity Tax on Wealth (ISF) in 2018, is payable by tax households whose net taxable real estate assets exceed €1,3 million. tax threshold triggers the reporting obligation.
This obligation concerns:
- Tax households domiciled in France that own real estate in France or abroad.
- The homes of non-residents owning real estate in France.
Are you affected? Find out what form 2042-IFI is and how to fill out your declaration to optimize your situation.
Form 2042-IFI: taxation focused on real estate
Under the former wealth tax (ISF) system, the declaration of taxable assets was made on form no. 2725 and had to list movable and immovable property. Today, the management The rules regarding assets have changed: only real estate assets are subject to IFI (French wealth tax).
It is therefore up to the taxpayer to list all the real estate assets he owns (built or unbuilt, held directly or indirectly) in order to define his taxable assets as of January 1st of the current year.
What assets need to be declared on form 2042-IFI?
Must appear on the 2042-IFI declaration :
- Built real estate: houses, apartments and their outbuildings.
- The buildings are listed as historical monuments.
- Buildings under construction as of January 1st.
- Undeveloped real estate: vacant land, agricultural land…
- Real estate assets or portions thereof via shares in SCI or SCPI.
- Real estate rights (usufruct, right of use or habitation…).
Each item must appear on the form, along with its market value estimated as of January 1st of the tax year. In the case of company shares, the value to be indicated is that which corresponds to the percentage of real estate assets held.
Tax calculation and possible deductions
Le tax calculation on real estate wealth is not proportional. It follows a progressive scale in brackets that apply to the taxable portion of net assets:
- From €0 to €800,000: 0%
- From €800,001 to €1,300,000: 0,5%
- From €1,300,001 to €2,570,000: 0,7%
- And so on up to 1,5% above €10,000,000.
Your a principal residence It benefits, as with the wealth tax (ISF), from a 30% reduction on its actual value. Other abatements and devices deduction exist. In particular, the value of the assets taken into account includes deductible debts and liabilities, which are subtracted from the sum of the value of the assets.
Declare your donations and benefit from tax deductions
In addition to assets and liabilities, form 2042-IFI is crucial for declaring payments made to eligible organizations, such as a recognized public-benefit foundation like the Pasteur Institute of Lille.
In accordance with Tax Code, These donations entitle you to significant benefits. discounts tax For the donor, the tax credit is equal to 75% of the donation amount (capped at €50,000, resulting in a maximum tax credit of €37,500). Donations taken into account by the... tax are those carried out between the deadline for filing the IFI declaration of the previous year and the deadline of the current year.
Payments to the Pasteur Institute of Lille must be entered in the section “Payments eligible for tax reduction”, in box 9NC “Donations to organizations of general interest established in France”.
When to declare?
As a reminder, the IFI declaration is made every year, at the same time as the declaration of theincome taxThe deadlines for the IFI (French Wealth Tax) are therefore identical to those for the IR (French Income Tax) and are set annually by the tax authorities. It is advisable to consult the official tax calendar to find out the precise deadlines for the current year.
Making a donation to the Pasteur Institute of Lille through the French Wealth Tax (IFI) means providing... valuable support for medical research and contribute to the fight against disease, while significantly reducing your tax bill.
