Tax return and LMNP: practical guide for owners of furnished properties

The tax return LMNP brings together all the accounting and tax documents that a landlord must provide to the tax authorities under the actual tax regime. Thanks to this set of documents, the administration accurately determines the taxable amount of income generated by your furnished rental activity.

Many landlords mistakenly believe that only accountants handle these forms. However, any non-professional furnished rental company who opts for the actual tax system is directly affected by this obligation. The rents you collect are subject to Industrial and Commercial Benefits (BIC), a classification that requires specific tax treatment. One of the main attractions of this system is the ability to deduct a multitude of expenses and then amortize your real estate investment, for a tax benefit significantly higher than traditional rental formulas.

Detailed composition of the LMNP tax return

The tax return brings together several mandatory forms that accurately reflect your financial situation. balance sheet (Cerfa form no. 2033-A) establishes a comprehensive inventory of your business: you will distinguish between assets (real estate, receivables) and liabilities (debts, capital). The income statement (Cerfa no. 2031) lists all of your rental income and the expenses allowed for deduction, such as financial costs or maintenance expenses.

 To this fundamental base are added essential complementary parts, notably the table of fixed assets and depreciation (Cerfa n° 2033-C), which lists all depreciable items with their purchase price. The importance of this document cannot be underestimated since it allows the calculation of the annual depreciation of your property and its equipment, a method which significantly reduces your tax base. It is also important not to neglect the other regulatory components:

• provision tables;
• loads to be ventilated;
• and Cerfa form no. 2042-C for the additional declaration of your income.

Tax calendar for LMNP declarations

Strict compliance with tax deadlines remains essential to avoid financial penalties. Your LMNP tax return must be submitted to the administration during the month of May. However, the deadline varies depending on your place of residence. Residents of departments 01 to 19 can file their tax return until May 25. If your home is located in departments 20 to 54, you have an additional deadline until June 1. As for residents of departments 55 to 976, their deadline is June 8.

paper declarations obey a single rule: regardless of your geographical location, they must be sent before May 22. Please note that these time limits only apply to the annual declaration. When starting an LMNP activity, you must inform the administration within fifteen days of launching your rental business, using the P0i form sent to the INPI. This formality will allow you to obtain your SIRET number, an essential identifier for all your subsequent tax procedures.

Impact of tax reform on LMNP status

The latest tax reform introduced significant changes for owners LMNP, mainly in the calculation of capital gains when selling real estate. Until recently, deducted depreciation remained excluded from the calculation of capital gains, which generated a significant tax advantage.

The new legislation now includes the depreciation in the calculation capital gains, which automatically increases your taxable base at the time of sale. An example perfectly illustrates this change: for a property acquired for €200 with €000 of accumulated depreciation then resold for €50, the taxable capital gain will reach €000 (€300 — [€000 - €150]) compared to only €000 under the old regime (€300 - €000). In addition, the law reduces the reductions for furnished tourist accommodation, which should drop from 71% to 50% for classified rentals, while unclassified rentals would see their rate drop from 50% to 30%.