Section actions
Who this guide is for
Section actions
- You if the value of your real estate in France (net of debts) approaches or exceeds €1.3 million
- You if you have purchased or inherited expensive property and want to know if the IFI applies
- You if you declare the IFI for the first time and want to understand the taxable basis
To be prepared in advance
Section actions
- Estimation of all property (main residence, secondary, rental, SCI, abroad) as of January 1
- Amount of loans/borrowings allocated to this property (deductible)
- Account impots.gouv.fr — for declaration 2042-IFI
Step-by-step procedure
Section actions
- 1Define the tax home: spouse/spaced + minor children. The IFI applies to the global home.
- 2Estimate net real estate assets at market value on January 1. For the principal residence: 30% discount (forfaitaire, without justification). Acquisition costs, works, deductible real estate debts.
- 3Add all taxable real estate: in France and abroad (for French tax residents), real estate shares of SCI, SCCV, trust (only the real estate share of a trust); usufruct is included according to its value.
- 4Exclude professional property (art. 885 O bis / O quater CGI): Real estate assigned to the main professional activity is deductible under conditions.
- 5Compare the thresholds: net ≥ €800,000 triggers progressivity (0.5% from €800,000 to €1,300 000, 0.7% up to €2,570,000, 1% up to €5,000,000, 1.25% up to €10,000,000, 1.5% beyond). Mandatory declaration if net ≥ €1.3 million.
- 6Complete the report on impots.gouv.fr (form 2042-IFI, particular space). Deadline: end of May – beginning of June (aligned on the tax return; single online calendar).
- 7Check the discount for donations to organizations of general interest — reduces the IFI by 75% of the donation, up to a limit of €50,000 (carryable over 5 years).
- 8In case of complex structure (SCI, trust, foreign assets) — consult an accountant or tax advisor; penalties for undervaluation can reach 40 % (lack of deliberate) + interest.
Common mistakes
Section actions
- Omit the return beyond €1.3 million net — penalty 10% of the minimum amount, + interest.
- Forget the shares of SCI/SCCV/usufruct — the administration crosses the data and straightens up.
- Apply the 30% discount to real estate other than the principal residence — reserved for the main dwelling.
- Include furniture (furniture, car, cash) — the IFI only hits real estate.
- Failure to report foreign assets (forms 3916/3916-bis) — separate fine for accounts/trust (750 € to 10 000 € or 5% of the amount).
Official sources
Section actions
Show sources in this section
Important remark
Scale and thresholds set by the CGI (Art. 974 et seq.). Indicative information; for your assets, consult a tax board or the DGFiP.
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