IFI 2020. The first deadline for payment of property tax is set for Tuesday, September 15. How can you pay it off? We tell you everything /
[Mis à jour le 15 septembre 2020 à 09h01] Are you liable for real estate wealth tax (IFI) and do not opt for a dematerialized means of payment? Now is the time to hurry. For you, the payment deadline is Tuesday September 15th. If you prefer online payment, you have an additional deadline: Sunday, September 20 at midnight. Still haven’t received your tax notice? Do not panic. In some cases, taxpayers are subject to a deadline (November 16, or even November 21 for online settlement). To find your tax notice, go to the tax website, impots.gouv.fr, and log in using your tax ID and password.
The real estate wealth tax (IFI) means the tax that came to replace theSolidarity tax on wealth (ISF) au 1is January 2018. This tax concerns households whose net taxable wealth is greater than 1.3 million euros on January 1. Note: the tax household for the IFI may be different from that established for income tax. It includes either one person living alone or two people living as a couple. Calculation, threshold, scale … Find here all the information on the tax on real estate wealth.
To know the date of payment of your tax on real estate wealth, first refer to your tax notice. Several dates have been set, depending on the payment method chosen:
- Tuesday September 15: for a non-dematerialized payment
- Sunday September 20 at midnight: for online payment
As explained previously, other dates can be applied to the month of November. It is therefore essential that you read your review carefully.
The calculation of the real estate wealth tax follows the same calculation methods as the ISF. It is appreciated slice by slice, from the first taxable euro. The amount of real estate wealth tax to be paid is determined according to the same scale as the ISF. Warning : the threshold for subject to the IFI is set at 1.3 million euros, but the tax is calculated on the portion of the assets exceeding 800,000 euros. Each tranche of assets is then applied the corresponding rate.
“Adult children who have a heritage exceeding 1.3 million euros, can be attached to the tax household of their parents for the declaration of income, but will have to declare their IFI independently”, states one on the dedicated site of the Ministry of the Economy.
The real estate wealth tax includes all real estate held directly (house, building, etc.), but also those held indirectly: the real estate civil society shares (SCI), de Real estate investment companies (SCPI) andReal estate collective investment undertakings (OPCI), as well as land shares held on January 1 of the tax year.
Also affected by the new tax are shares or company shares, for the fraction of the value of the securities which is representative of the property and property rights held by the company. Financial investments, savings accounts, life insurance and movable property (vehicles, works of art, etc.) come out of the tax base on real estate wealth. Also excluded are real estate assigned to a professional activity and securities of real estate companies, when the taxpayer holds less than 5% of the capital of the company.
Note: Please note that property that belongs to your minor children and to your spouse, but for which you have legal administration, are taken into account for the calculation.
The tax threshold for real estate wealth tax is retained. It applies to net taxable assets exceeding 1.3 million euros. The capping mechanism canceled in 2019, due to the application of the withholding tax, is intended to be reinstated. It is exercised under the same conditions as for the ISF. As a reminder, this device reduces the amount of tax to be paid to prevent all taxes (income tax, IFI and social security contributions) from causing a taxpayer to pay an amount greater than 75% of his income – in the limit of 50,000 euros.
The progressive scale of the ISF is maintained as is with the tax on real estate wealth. It is broken down into 6 tax brackets, the rates of which range from 0.50% (for the portion of assets between 800,000 euros and 1.3 million euros) to 1.50% (for the portion of assets above to 10 million euros).
|Net taxable value||Tax rate|
|Up to 800,000 euros||0%|
|From 800,000 euros to 1.3 million euros||0,50%|
|From 1.3 to 2.57 million euros||0,70%|
|From 2.57 to 5 million euros||1%|
|From 5 to 10 million euros||1,25%|
|Beyond 10 million euros||1,50%|
For taxable net assets between 1.3 and 1.4 million euros, a discount system has been put in place. The amount of this system is calculated as follows: 17,500 – (1.25% x amount of taxable net wealth).
On the tax website, the tax authorities have made a simulator available to taxpayers. You must mention the property you own directly (main residence, buildings, wood, forests, rural property, etc.), property held indirectly, your liabilities (in other words debts related to work carried out during the year of tax), expenses eligible for a tax reduction and the cap. You will then get a estimation.
The reduction of 30% for main residence is maintained with the tax on real estate wealth, provided that it is not held through a management SCI.
The tax administration has made a real estate wealth tax simulator available to taxpayers. You will find the one of the year 2020, by clicking here. As explained previously, you will need to indicate the following:
- Goods held directly: main residence (after deduction), other built buildings, wood, forests, etc.
- Property held indirectly
- Liabilities: debts relating to works and other debts
- Donations to organizations of general interest
Warning: this simulator is not worth a declaration. “Your net taxable base and your tax reductions must be mentioned in euros, without the cents”, it is specified.
The IFI must be declared at the same time as the income tax. It therefore follows the same schedule and must be completed before the deadline, which depends on the method of declaration and, where applicable, the department of residence. Note that taxpayers who were already liable for solidarity tax on wealth received a declaration form, in addition to their form 2042 tax return. Others can find the declaration form on the internet and download it (form 2042-IFI). It is then necessary to proceed to an estimate of its assets.