Depreciation (LMNP) — map — Furnished flat-share in Melun — LMNP · ID 02LMNP
How much depreciation you deduct in year 1, with your numbers. First what the year can depreciate (building, works, furniture — and the purchase fees if you chose to add them to the price), plus what was carried forward; then the LMNP rule: depreciation can never create a loss, so it is capped by the result before depreciation and the rest is carried forward.
- Building (and fees)
- Improvement works
- Furniture
- The year and the LMNP rule
Year 1: building €2,500 + works €586.30 + furniture €336.55 = €3,423 of depreciation. The result before depreciation is a loss of €2,331: nothing is deducted, €3,423 is carried forward. Deducted so far: €0.
What this calculation leaves out
- The LMNP rule (CGI art. 39 C): depreciation can only bring the result down to €0, never below. What is not deducted is carried forward with no time limit and used first in the next profitable years (before the earlier losses — the order of the tax map).
- Land: the model has no separate land share. The land is included in the purchase price, so this model depreciates it with the building, at the same rate (for tax purposes, land is not depreciable: a lower rate stands in for it).
- Purchase fees: deducted once, in year 1 (your choice, the default) — that is why they are not on this map’s sum.
- No pro rata: each line takes a full year's charge from year 1, and its last charge is capped at what is left.
- At resale, the depreciation deducted so far is added back to the gain — except the furniture’s part (the model’s choice, pending an accountant): see the tax map.
- Works and furniture without invoices (not declared) are never depreciated.
Each amount in the worked lines is rounded to the cent, so a line can differ by €0.01.