Property Information

A patrimonial company is an entity responsible for the management of real estate. It is not a separate form of company, it comes to the calibrated types of companies, knowing, traders and limited companies, Places etc. There are several reasons why a company would establish heritage. These motifs one can organize in non – fiscal and broadly fiscal reasons. A non – fiscal reason for the creation of such a company is that the real power does not want to shred over the generations. However, tax reasons are often the main cause for the establishment of a heritage company. In this way puts one immovable to personal ability, namely shares. Shares can in principle via hand gift, provided certain conditions are met, free of gift and inheritance tax be transferred to next generations. The relationship also offers Real Estate Company a lot of space for a lead heritage planning techniques. The construction are a living example of this.

1. Personal income tax or corporate income tax?

If one real estate valuation regime depends on possession of a privative what factors. Elements that passage: it is the main family house, it is a second home, what is the destination of the property etc. What is becoming established is that in such circumstances the real income will be taxed to the scales in increasingly higher income tax. In specific cases it may be interesting to a heritage company with a real power. Notwithstanding the legal protection pursuant to the legal personality, the company will at all times be taxed on actual rental income. The revenue of a company is now once more professional. Appraisal in corporation tax ad 33.99% (or the reduced ascending rate) than a fact. It is also tapping real estate to a company a lot of problematic for taxpayers. After all, the company will pay taxes added value to this abstraction. The more the real estate is depreciated, the higher will the added value. Also means the establishment of a company that a double bookkeeping should be conducted and that there will have to be published a year. These are costs that a taxable person must not wear if a patrimony privative is managed. For married couples, there is an additional disadvantage. Article 215 of the Civil Code provides an important protection for both spouses. One spouse may not without the consent of the other have the rights that he or she holds on the property that the family to main home, nor can he or she get this right with mortgage objections without the consent of the other. This protection shall lapse upon the establishment of a heritage company. Indeed, the provisions of the company law apply here and no longer those of the civil law.

2. Real estate assets from the company pick up

A taxable person wills sooner or later the real estate in one way or another from the company. The rule for that added value tax has paid than writes. The difference between the sales value and the book value will therefore be taxed as added value. If the property is already fully amortized, this added value will ensure that the taxable basis so high that this added value will be taxed to 33.99% (or ascending the reduced rate). This is also the big disadvantage of a heritage company.

A real reduction of corporation tax can be achieved by applying the system of staggered valuation of realized capital gains. The conditions of this system are described in article 47 of the code of income tax. There should be timely to be done went herbeleg. That can be both movable and immovable. This last is the period to reinvest in fact longer reinvestments. It is the sale price that will have to be reinvested, not the added value so. The realized capital gains will then a rate of the depreciations of the reinvestments in revenue. Condition is of course that the company is going to do new investments here. If the company is wound up, for example, this system is not applicable.

There are also alternatives for the acquisition of real estate