La management French law, and in particular the Real Estate Wealth Tax (IFI), can seem complex. However, there is a tax benefits major, governed by the general tax code, which allows transform part of your tax payment into an act of generositySince 2018, tax households whose total real estate assets have a net taxable value exceeding €1,3 million are liable for the IFI (French Wealth Tax). This tax replaced the ISF (French Solidarity Tax on Wealth), focusing solely on real estate assets.
While the tax base has changed, one essential mechanism remains: the possibility of significantly reducing, or even eliminating, your IFI (French wealth tax) by making a donation to a recognized public-benefit association or foundation. For the donorThis is a unique opportunity to support a vital cause while optimizing your tax situation.
Percentage discount, calculation examples, declaration… here’s everything you need to know to benefit from a tax reduction on your IFI.
IFI: Who is affected?
The following are subject to the Real Estate Wealth Tax:
- Taxpayers domiciled in France and owning real estate assets in France or abroad whose net taxable value exceeds 1,3 million euros.
- Taxpayers domiciled abroad who own real estate assets in France with a net taxable value exceeding 1,3 million euros.
The value of real estate assets is assessed on January 1st of each year and is calculated according to this scale.
Reducing your wealth tax: what tax breaks are available for donations?
charitable donations paid to certain organizations of general interest may be subject to tax deductions under the French wealth tax (IFI). This tax reduction corresponds to 75% of the donation amount, with a maximum annual reduction of €50,000, which corresponds to a donation of €66,667. annual ceiling is a limitation to note.
Any excess can be deducted from Income Tax, up to a limit of 20% of your taxable income.
The ISF-PME scheme, which allowed for the deduction of investments in SMEs, was abolished with the introduction of the IFI. Today, donations made with organizations such as associations and foundations constitute the only way to reduce the amount of the Real Estate Wealth Tax.
In his capacity as foundation recognized as being of public utility Committed to the fight against disease, the Pasteur Institute of Lille is a beneficiary authorized to receive donations deductible from the Real Estate Wealth Tax.
You can choose to make a donation of any amount you wish, or calculate the amount needed to bring your IFI (French wealth tax) back to zero.
- Example of a donation with total exemption from the IFI (French wealth tax) If your real estate assets amount to €1,500,000, you will owe €3900 in wealth tax (IFI). You can then choose to be fully exempt by making a donation of €5200 (since 3900/75% = €5200). Your donation effectively costs you €1300, and your wealth tax liability is reduced to €0.
- Example of a donation with partial exemption from the IFI (French wealth tax) You can also choose to make a donation of €1000, which entitles you to a reduction of €750. Your donation therefore effectively costs you €250 and your IFI amount is reduced to €3150.
How to declare a donation subject to the French Wealth Tax (IFI) in order to obtain a tax reduction?
The declaration of real estate assets and payments is made jointly with the income tax return, via form 2042-IFIAfter your donation, the Pasteur Institute of Lille will issue you... tax receipts These documents must be kept safe. They must be presented to theFISC administration in case of control.
When is it possible to make a donation that is deductible from the French wealth tax (IFI)?
Donations can be made throughout the year. Donations taken into account for calculating your tax deduction are those made between the filing deadline of the previous tax year and the filing deadline of the current tax year.
Why make a tax-deductible donation to the Pasteur Institute of Lille?
Making a donation deductible from the French Real Estate Wealth Tax (Impôt sur la Fortune Immobilière) is a tax-efficient opportunity, but above all, it provides essential support to the work of the Pasteur Institute of Lille. The generosity of each contribable represents 75% of our foundation's resources. To be eligible, this donation must be made without counterpart direct for the donor.
The funds collected are made directly and entirely available to the researchThanks to this support, they are able to carry out their work and develop the medicine of tomorrow.
IFI reduction: I make a donation and I support research.
Do you want to fund medical research and reduce your wealth tax? Donations to the Pasteur Institute of Lille can be made online or by mail, on a one-off or regular basis.
