Might anyone give me some more detail on this please?
My local rugby club brings over many Australian players to start them off on a European career, and consequently needs accomodation for them for seven months or so.
They are keen to rent my gite this season. There are, they say, two ways for me to have the rental. We have a straight forward contract where they pay from their coffers or, a better way for them as they are an ‘Association’, is for me to claim the rental against my impots each year. With this they hold onto their cash and I receive my rental a year later in the guise of not paying income tax to the value of the rental.
I am, not surprisingly, completely ignorant of such a scheme and tomorrow will try to pin down an accountant for explanation. This though will be a drawn out procedure so wondered if anyone here is aware. In particular, what the scheme is called?
Thanks Jane. Not exactly how I picked it up, but several points are similar to his explanation, so I wonder.
But not to worry, heaven knows the club can do with all the help it can get, and as the gite would normally be empty I would be content for some mutual benefit. I will let you know after I have a talk with my accountant.
My technical French is rubbish - slightly worse than my genearl command - but the gist of what he told me is, yes, I can reduce my tax. But I will not get the whole rental charge, maybe less than half. So it is not a scheme where one needs the rental income to live.
It seems that there are tiers of Associations in France. Many of the small professional rugby clubs are registered in a class that allows a donor to have a tax reduction (I think he said for rental of rooms/chambres) where they can bring in those starting out on their professional rugby career. In my case, it is thought the commercial rentability of the place is 12,000€ for the duration. This is a notional charge on the rugby club for which I get a ‘special’ receipt and he will have this translated into a 3000€ reduction of my tax bill…
I do not have any references for you, but I will try to remember to let you know next May how he applied the ‘special’ receipt for November and December…
- but the gist of what he told me is, yes, I can reduce my tax. But I will not get the whole rental charge, maybe less than half. So it is not a scheme where one needs the rental income to live.