CGT on sale of a gite

[Chauffour]

question: we are living permanently in France, own a gite complex with 3 houses: 1 for us, 2 rented as gites.

should we decide to sell, would we have to pay the CGT for the part of

the property used as gite? if yes, who calculate the value of each

single part? (we have been here 5 years)

thanks

massimo 

[oh]

I think, and I could well be very wrong here, it depends how many rules you are willing to bend, but according to a local in the know (in the 33) you will be liable for CGT on the gites that rent, but if you dont rent them for a year and pay all the bills you can class them all as your primary residence and then pay no CGT, you can still rent them and not declare, but that would be illegal.....

Disclamer:

I am in no way a tax proffesional, and am willing to accept any abuse for giving advice on somthing that I am not completely qualified to do. I no way do I condone the acts mentioned above, especially not declaring an income to the tax man, we are after all in a 'socialtist' country and should accept that the government has the right to tax people untill the last available centime is squeezed out of their pockets.

[Will]

It will also depend on whether your gites are run as a sideline, or provide a significant part of your income. If the latter, they should, according to some authorities, be run as a registered business, so different taxation rules will apply, and I doubt if the rather interesting (but probably perfectly legitimate) get-out would be available. The best person to advise would be your accountant or tax office.

If you are French tax resident (not all permanent residents will have made a residents' tax return yet, which is normally what qualifies you for tax relief on a principal residence), you will pay 27% (16% tax and 11% CSG) on the profit after certain allowances. If not French resident, but from another EU state, you just pay the 16%. I note you mention 'South Africa' in your signature. This rings alarm bells, as non-Europeans are liable to capital gains tax at 33%. So do take advice from a properly qualified professional. But as you say you have lived in France for five years I am sure you, personally, would be regarded as French tax residents as long as your tax affairs are up to date.

Assuming you don't wait for a year with no lettings, you woud be unable to count the gite(s) as part of your principal residence and thus have to pay tax. A notaire may be able to give a valuation of the individual parts being sold off, and calculate the profit, and thus the tax, or you may have to get another professional valuation. The notaire will withold the tax payable from the proceeds of the sale.

[Chauffour]

we are 100% europeans!!! me italian, wife scouser.

we decided to move permanently to SA, as long as we can sell in France next year...

 

buon natale

 

massimo

[Blanche Neige]

Wanted B+B/Gite business in 24,46,47

We are looking for a small B+B/Gite business ideally with room for expansion, with a limited budget. If you know of any in the 24,46 or 47 departments please send me a PM. Katrina I suppose you have seen this, posted on the other forum. Your place looks lovely BTW