Tax advice needed

[Gardener]

We have for the past 4 years completed our own tax form in France. This year due to a change of circumstances I think we may need to pay for professional help with ( or to explain) just a small portion of our tax form re crédit d'impots des intérets d'emprunt.

I have looked at a few compteur websites but I think they may be too big and expensive for our needs. Does any one know anyone I can contact by email who could help me out and isn't too expensive please?

ps I have contacted my local impots and they have been helpful.

[cooperlola]

Angela Francoise at Bruno Hebert.  I've posted her details on here before somewhere.....

You can work with her via e-mail etc no probs but if they give more than a little bit of advice you will have to sign a contract at some stage to protect you (ie be covered by their professional insurance) should things go wrong.  I found her very reasonable and helpful when we first came over although I've stopped using her now and do it all myself.

EDIT Here you go:

mailto:[email protected]

[Daft Doctor]

I concur, Angela is both very thorough and is English, so best of both worlds (especially concerning french tax affairs!).

[Gardener]

That's a great help thanks.

[Sunday Driver]

The crédit d'impots des intérets d'emprunt is dealt with on your 2042 tax declaration under page 4, section 7.  The amount you enter is the annual loan interest paid, excluding any fees or insurance premiums linked to the loan.

The tax credits apply if the property is your principal residence and the acte de vente was signed after 6 May 2007.  The property can be new, old or new and requiring finishing.

The tax credit applies to the annual interest paid during the first five years - 40% for year one and 20% for each of the four subsequent years.  However, for properties acquired new or built since 1 January 2009 and certified as a "bâtiment basse consommation énergétique, BBC 2005", then the tax credits apply for the first seven years at 40% each year.

For the first year's interest, you enter the amount in box VY.  For each of the four subsequent years, you enter the amount in box VZ.

If your property is certified as BBC 2005 then instead of the above, you enter the amount in box VX each year for the next seven years.

The tax credits are based upon the interest paid, up to an annual limit of 7,500€ for a jointly taxed couple (married or Pacs).

The credits are automatically applied and if the amount of your tax is less than the amount of the credit, you receive a cheque for the difference.

 

[cooperlola]

And of course there's always Mr Driver.....[:)]

[Gardener]

Thank you.The part that I am having difficulty with is that I had a prêt relais, which combined the amount owing on the house I was selling and provided the money for the house I was buying. Officially the old mortage ended and a certificate was issued to that effect when the pret relais started.

I have read on a French finance site that the entire prêt relais can be included but for a 6 month period only and this would be most welcome. But as the crédit d'impots... only applies to a maison principal and the pret relais is straddling two houses, even though they both became my principal / sole residence when the one was sold, I am not confident to make a claim based on the entire pret relais amount.  

I have visited the impots twice and pretty much what you posted above was explained to me ( but thank you [:)  It was just on the finer points that we ended up confusing each other.[:$] eg can I use the entire pret relais amount or only the part that I actually paid for the purchase of the new house?

I am just revisiting the terms and conditions of the paprework we completed but I think that the monthly repayments we made when the Prêt relais was in operation were solely interest payments. I just want to discover how much of this monthly interest I can include.

[Sunday Driver]

The tax treatment of a pret relais is set down in tax bulletin BOI 5B-14-08:

18.  Lorsque le contribuable contracte successivement deux emprunts pour l'acquisition d'un même logement (cas d'un prêt relais destiné à financer l'acquisition du nouveau logement dans l'attente de la revente de l'ancien), le propriétaire peut prendre en compte les intérêts versés au titre de l'ensemble de ces deux prêts, dans la limite des cinq premières annuités. Le point de départ de ces annuités s'entend donc de la date de mise à disposition des fonds par le prêteur au titre du premier des deux prêts.

That means that when a taxpayer incurs two successive property loans eg, the existing loan plus a bridging loan to finance the acquisition of a new property pending the sale of the former, the tax credit applies to the interest paid under the two loans together - and up to the five year limit. As your single pret relais covered your existing property as well as the future purchase, then you can regard it as being the equivalent of two loans.   

You can ask your tax office to confirm the application of this simple rule.

 

[Gardener]

Thanks again. I will just book mark that as it states officially in black and white what I was trying to get at when I visited the impots. I will get confirmation from my bank that the pret relais was just interest and I should be able to complete the section of the tax form myself.

One final thing ( a bit previous ) my first year where I can benefit from the 40% straddles two French years.

This year I will only need to complete box the box VY

Next tax year, l'm assuming I need to use both boxes in order to use the rest of the 12 months worth of 40% allocation box VY and then the balance at 20%. in box VX.

Does that sound about right?

[Sunday Driver]

Yes, that is correct.

 

[Gardener]

Great, I think I can cope without an accountant now. Thanks to all.