Balance sheet and tax return help
In this section, Rentila produces a balance sheet to help you prepare your tax return (in particular for rental income declared under the actual-expenses regime).
A summary table gives you an overview of:
- The taxable income received,
- The deductible expenses,
- The taxable profit.
The table is designed to give you an overall view of this financial information.
You can filter the records on criteria such as the year, the landlord or the property.
You can also export your records with the “Export” action at the bottom of the table.
Income and expenses in detail
Income: gross rents received (excluding service charges) This is the total of the bare rents collected during the year, excluding provisions for service charges. If you are registered for VAT, income must be declared excluding VAT.
Costs and charges: deductible expenses – management and administration fees This covers the management and administration fees paid during the year, such as caretakers’ and concierges’ pay, fees, commissions and other sums paid to third parties, and legal costs.
Costs and charges: deductible expenses – other management costs These management costs are deductible at a flat rate of €20 per unit.
Costs and charges: deductible expenses – insurance premiums Every insurance premium you have taken out is deductible, including those taken out under a group policy.
Costs and charges: deductible expenses – repair, maintenance and improvement work The repair, maintenance and improvement costs you paid during the year are deductible, except for construction, reconstruction and extension work.
Costs and charges: deductible expenses – recoverable charges not recovered when the tenant left These are costs normally borne by the tenant that you settled on their behalf (heating, lighting, lift maintenance, street-cleaning and refuse taxes, meter rental, and so on). If you were unable to recover them by 31 December of the year the tenant left, they are deductible. They may have been incurred either in the year the tenant left or in any earlier year since they moved in.
Costs and charges: deductible expenses – eviction compensation and rehousing costs Eviction compensation paid by the landlord is deductible when its purpose is to free the premises so they can be re-let on better terms.
Costs and charges: deductible expenses – taxes and duties Taxes levied for local authorities and other bodies on the properties whose income you declare are deductible. Important: the household refuse collection tax (TEOM), although it appears on the property tax notice, is in principle recoverable from the tenant and is therefore not deductible as a tax. If you were unable to recover it, however, it may belong under “recoverable charges not recovered”, depending on your situation.
Costs and charges: deductible expenses – loan interest Interest paid during the year on loans taken out to acquire, keep, build, rebuild, extend, repair or improve the properties you let is deductible. Do not include the capital repaid. You will find the annual interest amount in the “My loans & mortgages” section. Work out the amount that matches your tax position, then add it as a new expense of the “Charge déductible : Intérêts d’emprunt” type (deductible charge: loan interest) so that it appears in the balance sheet.
Deducting insurance premiums linked to a loan
In practice, the taxpayer declares insurance premiums linked to a loan on the loan interest line of the 2044, 2044 spéciale or 2072 returns.
Costs and charges: deductible expenses – other This category is for special cases, specific deductions and particular arrangements such as property investment companies (SCI). The amounts entered here then have to be carried over to the appropriate lines of the tax return.
Costs and charges: managing agent – provisions for charges If you are a landlord in a co-owned building, declare the provisions for service charges you paid to your managing agent during the year. Only provisions for expenditure are deductible.
Costs and charges: managing agent – reconciliation of the provisions deducted for the previous year If you are a landlord in a co-owned building, the reconciliation of the provisions for service charges is worked out as follows: (“Syndic : Provisions pour charge” — provisions for co-ownership charges — paid in the previous year) minus (“Syndic : Arrêté des comptes : Charges déductibles” — statement of accounts: deductible charges — for the previous year).
Example
For 2017, you paid provisions for co-ownership charges of €1,200. You deducted that sum on line 229 of your 2017 income tax return.
In 2019, on your 2018 income, you have to reconcile those provisions for co-ownership charges.
After the statement of accounts drawn up by your managing agent, the charges break down as follows:
– deductible expenses: €800
– non-deductible expenses: €200
– recoverable expenses: €180
That leaves a positive balance of (1,200 – 800 – 200 – 180) = €20.
The sum to add back, on line 230, is therefore €400 (200 + 180 + 20).
Warning
The information and calculations in the Balance sheet page are given for guidance only. They are there to help you complete your rental income return (return 2044 for individuals and return 2072 for property investment companies not liable to corporation tax): it is your responsibility to check that they are accurate and that they match your situation. Using an accountant is strongly recommended.
To download a form, go to impots.gouv.fr and search for it. If you look for form 2044, for example, you will find several options: the guidance notes, the assisted online form, the fillable form and the non-fillable version.
