Roche & Cie

8 things to know to correctly declare your wealth tax

11 May 2016

1 / Fix the drafting of annexes

If your net worth at 1 January 2016 is more than € 2,570,000, you must file the statement No. 2725 with its annexes. Feel free to be accurate because if the administration deems your  information insufficient to enable it to assess the good, the limitation period can be extended: for example do not indicate the number of rooms or total area of ​​real estate you do run the risk of seeing you apply the long prescription of control. So instead of going on three years, the administration would be entitled to up to six years because it has not had the opportunity to check the data reported and must perform further research.

2 / Do not forget the heritage of your minor children

If your children are minors, you must declare their assets in your statement not to mention the Livret A with few euros received at birth. Your children are adults, even attached to your income tax, they must make a separate statement if they own assets exceed the tax threshold.

3 / Report your property abroad

Once you are French tax resident, you must declare your worldwide assets and your financial or real estate assets held outside France must be deferred for their value in euros at January 1 of the tax year, subject to the provisions of tax treaties between France and the country offshoring good. Similarly, if you pay an ISF abroad, it will be deductible.

4 / If you have your main residence in an SCI, you will not get the discount of 30%

For your residence you can enjoy a discount of 30% on the declared value when you hold directly. If you hold in joint possession is authorized to practice a discount between 10 and 20%. If you hold in SCI, you do not have the 30% discount. You can deduct 20% for …. But this is only an administrative concession, not a right, it is not an allowance recognized by the Tax Code or the administrative doctrine, hence the obligation to conduct a good sense of reasoning.

5 / Do not leave out debts (loans and current accounts associated)

For financial assets, expand the business account holder, the nature of the account or assets: PEA securities account, PEL, current accounts, life insurance … deferring the balance at 31/12/2015 and for accounts interest bearing, the accrued interest balance (even if they are paid in early January 2016). The receivables from third parties: you have lent money to a child or a friend. Of same, your associates-current accounts must be reported, even if get an exemption from wealth tax on business assets of the company concerned.The shares of companies for which you do not have the qualifications of professional property should indicate the valuation method or the value of a unit or share.

6 / Be as specific as possible!

All assets must be mentioned: you have such report your vehicle to their value to the argus, boats, jewelry, and household furniture. For household furniture, a flat fee between € 5,000 and € 10,000 per well is more practiced than the package of 5%.

7 / Calculate well all deductible expenses

You specify the tax on the estimated 2015 income by ridge declaration, local taxes (property tax and residence tax), the current loans, accounts, inheritance tax pending payment of January 1, the maturity bills of 3 months: for example, the last quarter charges calls taken early next year. Remember that the ISF is itself deductible, and therefore it should calculate your theoretical ISF.You must join in supporting those relating to deductible liabilities (excluding taxes) and investments eligible for exemption or tax reduction.

8 / Do not underestimate your property!

If you have underestimated a property and want to sell it soon, it is recommended to re-evaluate its value for the year preceding the sale. The administration will of course entitled to go back on previous years. Note that the controls are done by crossing data between insured by ISF and notarial deed (sale, gift, inheritance).

Do not hesitate to contact us to help you declare your taxes.