Income from the rental of accommodation on a collaborative platform such as Airbnb, Abritel or others is subject to income tax. The activity of renting housing between private individuals brings about 2,100 euros to its hosts in the countryside, and can go up to 2,300 in Paris, according to a study carried out by Airbnb.
It is important to know that earnings from renting a furnished dwelling – your principal or secondary residence in short or long term – are taxable to income tax. They must therefore be mentioned in the tax return to be filed before the deadline.
Below € 32,900 of earnings per year, two tax regimes to choose from: the micro-BIC and the actual scheme.
- Either the income generated in 2016 is less than or equal to € 32,900, and in this case the taxpayers have a choice between the two schemes;
- Either they exceed this amount and then the actual scheme automatically applies.
For which tax system opt when both are possible?
Under the micro-BIC, the taxable profit corresponds to the amount of revenue reduced by a 50% flat-rate allowance. The lessor who opts for this tax system is taxed only on half of his earnings. On the other hand, it will not be able to deduct expenses from its revenues, which would have been allowed by the actual system.
Note that for annual receipts less than or equal to € 32,900, the micro-BIC regime applies by default. Taxpayers who prefer the real regime must therefore appear before 1 February.
How to declare?
In the case of the micro-BIC, it is sufficient for the lessor to increase the amount of his earnings on the supplementary income tax return No. 2042 C pro, on line 5ND. If its income is less than 305 €, it will pay no tax.
In addition, income from the seasonal rental of one or more rooms in a main residence is exempt up to a maximum of € 760 per year. The fraction below this amount is therefore not to be reported for income tax.
Under the actual scheme, the amount of income is to be reported on the professional declaration No 2031-SD.
It should be noted that if the landlord has received more than € 82,000 of this activity in 2016 and has made para-hotel services (to know more about the para-hotel system), he must pay VAT. In return, he can deduct the VAT paid on his purchases and expenses.
Since July 2016, websites for the renting of private dwellings are obliged to send their users an annual summary of the income generated by their intermediaries, which some of them already did before being forced to do so. A new milestone will be reached in 2019: the collaborative platforms will automatically transmit to the tax administration the amount of revenue generated through them.
Cabinet Roche & Cie – Expert-Comptable in Lyon