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?
2 types of expenses to be deducted from property income
In terms of the deduction of property income, there are three types of expenses:
Repair and maintenance expenses (essential expenses that allow the building to continue to be inhabited) = deductible.
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.
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.