Income from furnished rentals: automatic deduction or actual expense method? Which method is more advantageous? <\/p>

Your 2025 income tax return for furnished rental property will automatically fall under the micro-BIC regime in the following cases:<\/p>

• For income from non-commercial furnished rentals and classified furnished vacation rentals, the income threshold is \u20ac77,700, and the automatic deduction is 50%.<\/li>
• For income from unclassified furnished vacation rentals, the income threshold is \u20ac15,000, and the automatic deduction is 30 percent.<\/li><\/ul>

  <\/p>

  For furnished rentals, the actual expense method is much more advantageous than the micro-BIC method because, in addition to deducting actual expenses, it allows for the depreciation of the rented property.<\/p>

  This depreciation will drastically reduce the taxable base for rental income and often allows property owners to avoid paying income tax on rental income for 10 to 15 years.<\/p>

  Don\u2019t miss the deadline: The option to file under the actual income tax system for 2025 income must be chosen<\/strong>\u202fbetween May 22 and June 5 (the deadline for filing tax returns,<\/strong>\u202fwhich varies by department). <\/strong> <\/p>

  There are no specific formal requirements: You can make this selection directly through your imp\u00f4ts.gouv account.<\/p>

  For BIC income received in 2024, the deadline for electing this option has passed. The deadline was in May\/June 2024 (depending on the taxpayer\u2019s department). It is therefore no longer possible to elect this option for income received in 2024. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

  \n\t\t\t\t

  \n\t\t\t\t\t

  \r\n

  \r\n

  \r\n

  Income from furnished rentals: automatic deduction or actual expense method? Which method is more advantageous? Your 2025 income tax return for furnished rental property will automatically fall under the micro-BIC regime in the following cases: For income from non-commercial furnished rentals and classified furnished vacation rentals, the income threshold is \u20ac77,700, and the automatic deduction […]<\/p>\n","protected":false},"author":2,"featured_media":20003,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rs_blank_template":"","rs_page_bg_color":"","slide_template_v7":"","footnotes":""},"categories":[93],"tags":[],"class_list":["post-20002","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-taxation"],"yoast_head":"\n