Income tax: the 3 questions you ask yourself the most about your tax return

At a time when each taxpayer must complete their tax return to send it to the tax authorities by June 4, the Order of Chartered Accountants has set up a free service to help them complete their procedures. Which are therefore special this year. Given the implementation of withholding tax, a blank year is planned for 2018 income. Only income falling within the scope of withholding tax (PAS), that is to say salaries and income assimilated, the income of retirees and the self-employed (BIC, BA and BNC), as well as property income are affected by this white year. This non-exceptional income will not be taxed in order to avoid a double levy in 2019, thanks to the implementation of the tax credit for the modernization of collection (CIMR) which will erase the tax payable on 2018 income. According to our information, the chartered accountants were mainly questioned on these three questions, via their consulting operation:

1. Furnished rental with option for the real thing: how to do it?

In the case of furnished rentals, taxpayers must declare the rents received as industrial and commercial profits. They can either benefit from the simplified micro-BIC regime for a turnover of less than 70,000 euros (50% reduction on declared income),

or the actual regime (automatic for a turnover greater than 70,000 euros). “The choice between the two regimes must be made before the 1is February, it is therefore too late to change, explains Laurent Benoudiz, president of the Order of Chartered Accountants. The choice is valid for one year, taxpayers will be able to change regimes next year if they wish. “Good to know: when it comes to a first declaration, it is more interesting to opt for the regime which allows to amortize, in addition to the property, loan interest and the amount of any work, all the costs related to the acquisition, which can lead to the creation of a deficit carried forward the year next.

2. Is the income received during the termination of an employment contract (paid vacation pay, notice, severance pay) considered exceptional?

Income outside the scope of withholding tax, such as dividends, interest, real estate capital gains or capital gains on securities do not benefit from any specific measure under 2018. such income received in 2018 remains due. By exceptional, we must understand everything that does not need to be renewed. Notice (effected or not) and paid holidays will not be imposed, while a fraction of the severance pay (in particular determined according to the collective agreement on which the taxpayer depends) does not give entitlement to the benefit of the CIMR. In the same vein, bonuses received by company directors not provided for in their employment contract or additional property income (compared to those usually received in previous years) are taxable.

3. How does the attachment of adult children work?

“This is a traditional question that comes up every year, underlines Laurent Benoudiz. With his agreement, the student child (up to 25 years) and still dependent on his parents can be attached to the tax household of his parents.” However, an individual calculation is required. It may be more interesting to deduct from its expenses a pension paid to a child rather than attaching it to its fiscal household to benefit from an additional half share.