Decision on tax regime for my gite activity

[Gail Smith]

There must be hundreds of you out there who have registered your gite with the impots. Can you answer my query?

Having just submitted our french tax return we have been sent some forms to complete as we have declared some income from our gite...apparently we have to register the activity. The form is Form P0-i

Can anyone tell me which Option Fiscale I should adopt for gite income. We obviously sumbitter our gite income in the correct box on the tax forms (so we gwt the 78% tax relief and then taxed on the rest. My only real concern is that I don't choose a fiscale regime which gets me taxed on a different basis to that.

I assume I choose to register as  a B.I.C but do i tick 'Micro', Reel Simplifee' or 'Reel Normal'. Like I said, my only real concern is wheher my choice will affect detrimentally the 78% allowance i get on this type of income.

thank you

[nimportequoi]

Micro. Assuming your income is less than 76,300€ or 23,000€ if it is your only income and you are a 'loueur professionel'. The tax relief is 72% but will decrease to 68% next year (the French Govt don't like micros very much!) 

[LesLauriers]

[quote user="SusanAH"] The tax relief is 72% but will decrease to 68% next year (the French Govt don't like micros very much!) [/quote]

It's not that they don't like micros in fact the 4% reduction compares well to the loss of the 20% abatement salaried and pensioned people currently get.

The reason for these reductions in allowances, is that the rates of taxation are reduced for the 2007 return covering 2006 income.

[LesLauriers]

[quote user="Gail Smith"]

There must be hundreds of you out there who have registered your gite with the impots. Can you answer my query?

Having just submitted our french tax return we have been sent some forms to complete as we have declared some income from our gite...apparently we have to register the activity. The form is Form P0-i

Can anyone tell me which Option Fiscale I should adopt for gite income. We obviously sumbitter our gite income in the correct box on the tax forms (so we gwt the 78% tax relief and then taxed on the rest. My only real concern is that I don't choose a fiscale regime which gets me taxed on a different basis to that.

I assume I choose to register as  a B.I.C but do i tick 'Micro', Reel Simplifee' or 'Reel Normal'. Like I said, my only real concern is wheher my choice will affect detrimentally the 78% allowance i get on this type of income.

thank you

[/quote]

According to this http://www.lemoneymag.fr/Kalideo/Site/Application/Fiche_Pratique/s_FichePratique/0,1729,7-12958-12960-5207-5742-5738-FIC,00.html

It's "Reel Normal" but it is confusing so let's see some more replys!  

Edit No it's Micro Bic, I got confused thinking it had to be Micro Bic and either Reel or Simplifie, should have followed SusanAH's advice in the first place.!

[Gail Smith]

Susan

did you mean 'not' a louer proffesional?

We are not 'Louer proffesoinel' and just want to declare the right regime for much less than 20 k euros income per annum.

We thought that we didnt have to register in any way to have a gite and just had to declare income to the impots on our return.  They now want us to register the gite even with the declared a small income for last year.

 

 

[nimportequoi]

[quote user="Leslauriers"][quote user="SusanAH"] The tax relief is 72% but will decrease to 68% next year (the French Govt don't like micros very much!) [/quote]

It's not that they don't like micros in fact the 4% reduction compares well to the loss of the 20% abatement salaried and pensioned people currently get.

The reason for these reductions in allowances, is that the rates of taxation are reduced for the 2007 return covering 2006 income.
[/quote]

Les Lauriers, I'm just repeating what my accountant said! I know he 4% reduction in abbatement is due to the abolition of another tax (can'remember what it's called, but you pay it for renting out old renovated buildings).

Gail, yes, you are loueur non professionel.