What expenses can be deducted from property income?

The forum question of the day concerns the expenses of fitting out parking lots and green spaces. Can they be deducted from property income?

I have a building consisting of several lots. If I plan to enlarge my car parks and hire a landscaper to develop the green spaces, can I deduct this work from my property income? Are they considered “renovation” work? (This building is over 5 years old.)

In fact I plan to build another small collective building next to the 1st and these works will be necessary... I just prefer to pass them in "expenses" now rather than in works during the construction to come... Isn't it not play with fire?

building green space

2 types of expenses to be deducted from property income

In terms of the deduction of property income, there are three types of expenses:

  1. Repair and maintenance expenses (essential expenses that allow the building to continue to be inhabited) = deductible.
  2. Improvement expenses (new element of comfort, better adapted to modern life, which does not modify the structure of the building) = deductible. The tax authorities give some examples of deductible improvement work : the installation or replacement of central heating, a bathroom, a kitchen, mains drainage, an elevator or a collective television antenna, etc.
  3. Construction and expansion expenses (significant modification of the structural work) = non deductible.

Parking and green spaces = improvement expense?

Expenses for parking and green spaces contribute to the living comfort of the tenants of the nearby building, as ancillary items.

They are therefore logically deductible from property income. The Council of State validates for example a sidewalk asphalting waiting at the property – judgment of 20 November 1968, n ° 71753).

On the other hand, these expenses are not deductible if they are necessary and therefore inseparable for the construction work of the future building.

In the end, deducting these operations from your property income is effectively not respecting the spirit of the texts and "playing with fire"...

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