Sale of a rented property after having lived it: will I pay taxes on added value?

Long owner of an apartment, Michel hired it. While he is about to sell it, he wonders if he will be imposed on the added value. Response from Charles Flobert, notary, in the program Le Grand Rendez-vous de l’Emalmboards (Capital/Radio Immo).

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Owner for 24 years of an apartment in Paris, Michel wishes to sell it. “Will I be imposed on the Plus-sale of transfer ? “he asks in the show The big real estate meeting (Capital/Radio Immo). First, will there be added value, that is to say a sale price higher than the purchase price? Given the Priced prices in Paris For years, there is no doubt that Michel, who bought his property a quarter of a century ago, will take over a coquette added value. Then is it good about his main residence ? A question of importance, the capital gain on the main residence being exempt from tax on income and social security contributions, which is not the case for rental goods.

This is where the rub for Michel, because, two years ago, he stopped living in this Parisian apartment and hireto go and live in the provinces with his mother, who hosted him free of charge. Charles Flobert, notary in Saint-Maur-des-Fossés, in Val-de-Marne, is categorical: “Unfortunately for Michel, he will indeed be imposed on the capital gain on the sale of his property since he, rented to someone else for two years, is no longer his main residence.”

Have in mind the definition of the main residence

Michel could however be exempt from the taxation on the added value for the sale of his Parisian apartment if he fulfilled the following two conditions. On the one hand, If he used the product of this sale to finance the purchase or construction of his main residence within two years. On the other hand, if he had not owned his main residence in the four years preceding the sale. Too bad for Michel, “He does not enter this case since he was still the owner of his accommodation two years ago”objects Charles Flobert.

And if, once his tenant left for a leave for sale, Michel reintegrated the Parisian apartment to make him his main residence again and then sell it without being imposed on the capital gain? Why not “But he will have to reside at least two years»» Before being able to sell without paying tax on the added value, “It is a delay that seems reasonable”estimates Me Flobert. And there is no question of remaining hosted by Maman free of charge, leaving the vacant Paris apartment for two years: “The main residence is the one where we live, where we consume electricity and water”warns the notary.