Rigorous bookkeeping
The first precaution is to keep precise, rigorous accounts. As an LMNP, you need to record all your income and expenses relating to furnished rental. We recommend using management software or calling in a specialized chartered accountant to ensure that all transactions are properly recorded and documented.
Know the applicable tax rules:
It's essential to understand the tax rules specific to the LMNP regime. Make sure you know the income thresholds that must not be exceeded to remain in this regime, as well as the various deductible expenses. Familiarize yourself with the different income categories(micro-BIC or régime réel) and choose the one that best suits your situation.
Respecting reporting deadlines:
Keeping to reporting deadlines is an important precaution to avoid possible penalties. Income from furnished rentals must be declared within the deadlines set by the tax authorities. Make sure you are aware of these deadlines and submit your declaration on time.
Declare all income generated
It's essential to declare all income generated by your LMNP activity, whether short-term rental, seasonal rental or any other form of furnished rental. Don't forget to include income from online rental platforms, such as Airbnb. Failure to declare income can result in severe penalties.
Keep all supporting documents:
Keep all supporting documents related to your LMNP income and expenses. This includes rental contracts, furniture purchase invoices, rent receipts, bank statements, management fees, etc. These documents will serve as proof in the event of a request from the tax authorities.
When declaring income as a LMNP, you need to take precautions to ensure compliance with tax legislation. Keep rigorous accounts, familiarize yourself with the applicable tax rules, meet reporting deadlines, declare all your income and keep all necessary supporting documents. To help you with these questions, we recommend that you consult a specialized partner such as decla.fr.