How does the main residence is she imposed under the IFI ?
In addition, research since 2018 Real Estate Wealth Tax (IFI) replaces the Solidarity Tax on Wealth (Wealth tax). From now on, only real estate assets are taken into account in the calculation of the net taxable value. of the taxpayer's assets, contrary to movable property who are no longer part of the tax base.
The IFI concerns the tax households whose real estate assets have an estimated value of over €1,3 million as of January 1st of the current year. All real estate assets, held directly or indirectly by the taxpayer, including the main residence, are included. However, the latter is partially exempt.
Main residence and wealth tax: a 30% allowance
The main residence, considered less likely to generate income for the taxpayer, is subject to a 30% reduction on its market value actual as of January 1st of the current year. This discount, already in effect under the wealth tax regime, represents a significant tax exemption for the propriétaires.
The main residence is the only asset of the real estate to benefit from preferential taxation. On the other hand, real estate strictly used for the professional activity of the owner (or certain members of his family) is not taken into account in the tax base of the IFI.
Note: If the main residence is owned by several owners through a SCI managementShe is not eligible for this 30% allowance. In this case, she is taxed at the value representing each person's share, without any allowance.
How is the main residence defined for tax purposes?
Tax Administration The law defines the main residence as the taxpayer's actual dwelling. To qualify as a main residence, the dwelling must be occupied by the taxpayer and their family for the majority of the year and constitute the center of the household's material and professional interests.
It is therefore impossible to declare two main residences. Any fraudulent declaration aimed at passing off a secondary residence as a main residence will be easily detected by the tax authorities (children's school, main postal address, etc.).
How to reduce your IFI (French wealth tax)?
Despite the inclusion of the main residence in the calculation of the IFI (French wealth tax), there are ways for taxpayers to reduce their tax burden. Donations made to charitable organizations or recognized public-benefit foundations, such as the Pasteur Institute of Lille, are deductible from the amount of the IFI up to 75%. This scheme allows donors to benefit from a significant tax reduction while supporting a cause they care about.
Donations represent 85% of the resources of the Pasteur Institute of Lille and are essential to finance the medical research carried out by the institute. By making a donation to the Pasteur Institute of Lille, you are helping to advance the fight against infectious, cardiovascular, neurodegenerative diseases, diabetes and cancer.
Additional aspects of the taxation of the main residence
Tax allowances and deductions
In addition to the 30% tax allowance on the main residence, various tax measures allow for a reduction in the tax burden on real estate. For example, social security contributions and specific exemptions can influence the net taxable amount.
Finance law and real estate taxation
The finance law determines the applicable tax rules each year. Taxpayers should pay attention to legislative changes which can impact the taxation of their real estate assets, including their main residence.
Income tax return and exemptions
The income tax return must include all real estate assets owned, including the main residence, in order to correctly calculate the IFI (French wealth tax). Applicable exemptions and allowances must be clearly indicated to benefit from the tax reductions permitted by current legislation.
Conclusion
The main residence benefits from a special tax treatment Under the French wealth tax (IFI), a 30% allowance is available, thus reducing the taxable value. However, it is crucial to fully understand the specific conditions and tax rules to optimize your tax return and take full advantage of available tax benefits. Donations to recognized charities, such as the Pasteur Institute of Lille, also offer an effective way to reduce your IFI while supporting important causes.
