Spring traditionally brings a boost to the vacation rental business as it prepares for the summer season. In addition to preparing the property to welcome new residents, it is also necessary to think about getting up to date with the tax system. Indeed, May 18 is the key date to declare your rental income. But how should owners proceed?
Conditions to respect
Let us specify that the LMNP status gives the owner-lessor the possibility to choose between two tax systems:
- The micro tax system is the simplest and is intended for taxpayers who do not generate more than €77,700 (excl. tax) in income from their rentals. It authorizes a deduction of 50% (71% for the tourism category), automatically applied to the declared income.
- The actual system, more complex than the flat-rate system, requires the keeping of accounts and allows certain expenses to be deducted from the sums received as rent. These expenses are related to the management of the activity.
Provisions for declaring
Under the micro-BIC regime (micro-business), you must indicate the gross amount of the receipts on the online tax return or with the form n°2042 C-PRO. Remember that you must first be registered in the Sirene directory of INSEE (National Institute of Statistics and Economic Studies) and that this formality must be completed online at the business formalities office.
In the case of the so-called Real Profit System, the form n°2031-SD must be filled in and the amounts must be reported on the tax return n°2042 C-PRO. However, the administrative procedures are more complex:
- firstly, the tax result must be reported on the tax return in May 2023, the exact date of which varies according to the place of residence of the property;
- and secondly, it is necessary to send his tax return on the global income (salary + rental income) according to the following schedule, online declaration on 18/05/2023 and paper on 03/05/2023.