How To Collect Rental Income

Rent flats bare new or old, and even parking permits to collect rental income on which you must pay taxes, whether you perceive directly or by a real estate partnership.

The capital of a real estate investment is not guaranteed. It is subject to fluctuations in the real estate market in the area where your property. Investing in real estate is always an element of risk simply to the geographical area.

Money invested in real estate is always available to the extent that you can sell the property you own. Plan ahead because between the time you decide to sell an apartment or a rental property and when you earn money, it can take several months. The yield or return your rental investment depends primarily on the evolution of the local market. It can vary between 5% and 10% in different localities.

Rental income, paid directly or through a Real Estate Company, are taxable and must be worn on the tax return through specialty printing. If the rental income does not exceed 15,000 euros per year and you do not have a property affected by the devices Robien, Borloo, Malraux and Historical Monuments, you are in the regime of micro land. Rents are taxed at 70% of their value to the progressive scale of tax on income. Social taxes of 11% will also apply. When the amount of rental income exceeds the sum of 15,000 euros, use actual costs. You can deduct interest on loans for the purchase of rental property, provisions for condominium fees, expenses for repairs, the eviction compensation, relocation expenses, management fees, insurance premiums and property tax duty garbage. Always keep receipts in case of control of tax administration.

When expenses exceed the amount of rental income, you realize a shortfall in land, whose share of interest from Loan may be made in subsequent years within a decade. The deficit from other charges may be charged against the overall income of the taxpayer in the limit of 1070 euros per year.

The capital gain is taxable estate to 16% plus the 11% social. The real estate gain benefits from a reduction of 10% per annum from the fifth year of ownership of the property. Add to this a reduction of systematic EUR 1000 on your income property. In fifteen years, the exemption is reached.