Benefits of the status of owner of furniture

How to get the status of LMNP?

Become owner of non-professional furniture, to generate rental income of less than €23,000 and should not be entered in the register of commerce as a furniture rental company. Rent one or more apartments, report the activity to tax services.
Leases must be for a period of 12 months or 9 months for students as their main residence.
The apartment must be sufficiently furnished and equipped so that the tenant can live there with his only personal effects.
For shorter rental, seasonal rental, a prefectural authorisation is necessary in the cities with over 200,000 inhabitants, Paris and those of the departments of Hauts-de-Seine, Seine-Saint-Denis and Val-de-Marne.

Benefits of the status of non-professional furnished rental:
Rent furnished allows to benefit from lighter taxation, or even zero in some cases.

Also known as furnished rental LMNP (non-professional furnished rental) or LMP (professional furnished rental) enters the tax system of the BIC. Unlike traditional tenure of bare rental, furnished rental allows to amortize real estate and furniture. When the deductible expenses and the interests of loan no longer enough to erase tax income to declare, the depreciation allow in most cases to obtain rental income net of taxes during the period of repayment of the loan that funded the operation and even to the beyond...
Although subject to the tax regime of the BIC, the capital gains are the same that those individuals, either an exemption at the end of 22 years.  Social security levies are totally exempt after 32 years

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How to get the status of LMP:

To be considered professional furnished rental must be completed several conditions.
-Registration in the trade register of at least one of the members of the household issuance

-Have receipts from rental furnished with at least 23 €000 incl. VAT per year and that these revenues are greater than the other activity of the tax household income. If activity starts during the year, the amount rises to pro rata temporis.

* Some Chambers of commerce refused registration considering that the activity is not a commercial activity. This does not preclude obtaining the status of professional Renter vis-à-vis tax services. It is sufficient proof of the refusal.
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Benefits of the status of professional furnished rental:

-Allocation of the deficits on global income without limitation.
-exemption from capital gains after 5 years of activity if the turnover is less than €90,000.
-exemption of ISF if the income foregone from such activity are superior to other income from activity.
-In case of death:

payment of inheritance taxes can be deferred by 5 years. These 5 years the heirs pay only interests. Then, the rights will be spread over ten years.

A 75% reduction is applied to value goods if the following conditions are met:
-the professional furnished rental has been exploited for at least 2 years by the deceased.
-the heirs maintain housing for at least 6 years.
-one of the heirs continued the operation for at least 5 years.