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Deductible works: which works can be deducted from property income?

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Deductible works: which works can be deducted from property income?

Depending on the work carried out, some may be deductible from property income for owners. Let's see the expenses that are affected by this tax deduction.

Construction tax deduction: how it works

When an owner carries out work on the accommodation he is going to offer for rental, this work is deductible, but on one category only: property income. The tax deduction during works cannot therefore lower income taxes. Land income is represented by income from real estate. These are mainly the rents received for unfurnished goods rented out by an owner. The expenses related to the works are therefore not deductible from income taxes, but only from the rents collected.

Land income: work deductible from income tax

Now let's see what works deductible from property income in more detail.

Renovations

When we talk about renovation work , we mean repair and maintenance work. These aim to maintain or restore housing to good condition. In this case, the consistency of the good, i.e. the layout and the initial equipment, is not changed. The renovation works, the replacement of the boiler, the repair of the roof, the repair of an existing electrical installation, and many others are concerned. On the other hand, rental expenses for maintenance and repairs are not deductible. These are the expenses which naturally fall to the tenant such as keeping the walls clean, repairing cupboards when necessary, maintaining the pipes… Even if these expenses are covered by the owner, he will not be able to deduct them from his property income.

Improvement works

The improvement works aim to provide a new element or equipment of comfort. Without changing the structure of the building, they will adapt it to modern living conditions. These works are deductible from the rents collected for housing. Improvements are considered: the installation of an elevator, the replacement of central heating, a kitchen or bathroom, or the installation of a collective television antenna. If these improvement works are carried out in premises for commercial or professional use, the expenses are not deductible. An exception is made for work intended to facilitate the reception of disabled people, or to protect the premises from asbestos.

Construction, reconstruction, or expansion work

Unlike the previous ones, expenses for construction, reconstruction or expansion work are not deductible from property income. These works are understood to mean those which have the effect of modifying the very structure of the dwelling or which increases the living area. Demolition work is not deductible either.

The case of the CITE Several energy saving projects entitle you to the CITE (tax credit for energy transition). The expenses incurred during the year 2019 give rise to the tax credit in 2020. Among the equipment eligible for the CITE, you will find the installation of boilers, closed hearths, heat pumps, or the change of windows.

Co-ownership works

Another type of work is deductible: co-ownership work . This concerns the work carried out in the common parts of the housing, more specifically the improvement, repair and maintenance work, as for the private parts. Work carried out in the common areas of professional or commercial premises is not deductible.

The terms for deducting expenses related to work in the common parts will be different from those concerning the private parts, because they are included in the condominium fees.

You can find all the information concerning the work deductible from land income on the Government website . Also discover the eco PTZ Collectif, one of Finance Studio's condominium loans .

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