Roche & Cie

Taking account of work in the calculation of the real estate gain

16 May 2016

In the calculation of real estate gains, it is possible to make certain adjustments to the purchase price in order to reduce or completely remove the taxable gain.

So is it possible to increase the price of acquisition expenses of the work.Regarding the increase in the purchase price for the work should, however, to distinguish according to the said work is carried out after completion of the building or before the completion of the building. (For more details please contact us)

Subsequent to the completion of the building, article 150 VB-II-4 of the CGI provides that the cost of construction, reconstruction, expansion, renovation or improvement, supported by the vendor and built by a company come to increase the purchase price if they have not already been taken into account in determining the income tax and do not have the character of rent expense.

Therefore, can not be taken into account the actual amount of the work done by the taxpayer himself or a third person other than a company (eg hired labor).

It is the same cost of materials purchased by the taxpayer even if their installation is done by a company. Expenses related to the installation materials invoiced by the company are however taken into account increase the purchase price any conditions being otherwise met.