Should I apply for classification?

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limousin-cottage
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Post by limousin-cottage »

Thanks guys. Now we have established that in order to get the 71% abbattement, you do need to be classified as a meublée de tourisme, which is as I knew when I posted, but no-one seems to know the answer to the my original question, which was does the abbattement apply to both income tax and social contributions? As I do not earn enough to pay income tax, but they still take it off me in social contributions. For the years 2013,14, and 15 I applied for and received a tax rebate for contributions sociales paid (they can only go back 3 years) but for the 2016 income, they have somehow skirted around the EU law that said they couldn't charge CS to holders of an S1 (UK State pensioners) because the UK already pays for the healthcare of S1 holders, and found another way of charging it. So would it be worth me paying €150 to obtain a classification?
:roll:
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oasiscouple
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Post by oasiscouple »

Limousin-C, for social charges I believe the answer is in the link I gave above, https://www.service-public.fr/particuli ... its/F34102 which says that if your declared rental income is less than 23000€ you don’t pay social charges. If it is more, you do and if you declare your income on line, it should all be dealt with automatically. I don’t think it is linked with the 71% reduction, but on the gross rental income declared.

Regarding the necessity or not to apply for official classification, it is not at all clear but my conclusion is that it depends on whether your rental property is considered a gîte or not. Seems to me that the experience of Debby is linked to the fact she is evidently running a gîte business as she mentions the inspection related to “two of my gîtes”.

My beach holiday apartment is obviously not a gîte although it is a “meublé de tourisme” and there doesn’t seem to be any mention on the government “service-public” site that classification is necessary to be eligible for a 71% reduction. My beach apartment is in one of the five adjacent naturist villages between Leucate and Port Leucate. When I look at which properties are classified on the “classement atout france” site, not a single owner, among what must be around 2000 properties, have a classification. I have no intention of going to the expense and hassle of applying for classification, especially as much of the evidence I can find keeps saying it is an optional step aimed at maintaining standards and nothing to do with your tax regime.
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Jensen
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Post by Jensen »

There are social charges i.e if you are a registered business that you pay monthly etc.. And there are yearly social charges on your
revenue foncier whether it be a gite,B&B or a house you let out full time. These charges are called CSG & RDS and were put in place to pay back some of the social securitys black hole ! This is a very unfair tax as you have to pay it regardless of whether you are liable to pay tax or not. We are in the same situation as the OP so to answer your question , No you will not obtain a 71% reduction if you paid the 150 euros off the RDS & CSG social charges.
limousin-cottage
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Post by limousin-cottage »

Jensen wrote:There are social charges i.e if you are a registered business that you pay monthly etc.. And there are yearly social charges on your
revenue foncier whether it be a gite,B&B or a house you let out full time. These charges are called CSG & RDS and were put in place to pay back some of the social securitys black hole ! This is a very unfair tax as you have to pay it regardless of whether you are liable to pay tax or not. We are in the same situation as the OP so to answer your question , No you will not obtain a 71% reduction if you paid the 150 euros off the RDS & CSG social charges.
Yes, you are in the same situation as we are I think. So, you are sure that if I apply for classification, which costs around €150 and lasts for 5 years, it would only benefit me if I paid income tax, but has no effect on CSG? That seems to make it even more unfair to the likes of us.
Jensen
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Post by Jensen »

limousin-cottage wrote:
Jensen wrote:There are social charges i.e if you are a registered business that you pay monthly etc.. And there are yearly social charges on your
revenue foncier whether it be a gite,B&B or a house you let out full time. These charges are called CSG & RDS and were put in place to pay back some of the social securitys black hole ! This is a very unfair tax as you have to pay it regardless of whether you are liable to pay tax or not. We are in the same situation as the OP so to answer your question , No you will not obtain a 71% reduction if you paid the 150 euros off the RDS & CSG social charges.
Yes, you are in the same situation as we are I think. So, you are sure that if I apply for classification, which costs around €150 and lasts for 5 years, it would only benefit me if I paid income tax, but has no effect on CSG? That seems to make it even more unfair to the likes of us.
Exactly :( I looked into it last year for the same reasons as you ! We have since written to the "impots" because we pay over 1400 euros in CSG & RDS and is killing us financialy but they don't want to know !
limousin-cottage
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Post by limousin-cottage »

Jensen wrote:
limousin-cottage wrote:
Jensen wrote:There are social charges i.e if you are a registered business that you pay monthly etc.. And there are yearly social charges on your
revenue foncier whether it be a gite,B&B or a house you let out full time. These charges are called CSG & RDS and were put in place to pay back some of the social securitys black hole ! This is a very unfair tax as you have to pay it regardless of whether you are liable to pay tax or not. We are in the same situation as the OP so to answer your question , No you will not obtain a 71% reduction if you paid the 150 euros off the RDS & CSG social charges.
Yes, you are in the same situation as we are I think. So, you are sure that if I apply for classification, which costs around €150 and lasts for 5 years, it would only benefit me if I paid income tax, but has no effect on CSG? That seems to make it even more unfair to the likes of us.
Exactly :( I looked into it last year for the same reasons as you ! We have since written to the "impots" because we pay over 1400 euros in CSG & RDS and is killing us financialy but they don't want to know !
Thank you, so no point in me getting a classification then if our income is below the income tax threshold. Did you get a refund of three years CSG, following the EU ruling that it was illegal to charge CSG to holders of S1? We did. But of course they then changed it, and we got charged again for 2016 income.
Jensen
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Post by Jensen »

limousin-cottage wrote:
Jensen wrote:
limousin-cottage wrote: Yes, you are in the same situation as we are I think. So, you are sure that if I apply for classification, which costs around €150 and lasts for 5 years, it would only benefit me if I paid income tax, but has no effect on CSG? That seems to make it even more unfair to the likes of us.
Exactly :( I looked into it last year for the same reasons as you ! We have since written to the "impots" because we pay over 1400 euros in CSG & RDS and is killing us financialy but they don't want to know !
Thank you, so no point in me getting a classification then if our income is below the income tax threshold. Did you get a refund of three years CSG, following the EU ruling that it was illegal to charge CSG to holders of S1? We did. But of course they then changed it, and we got charged again for 2016 income.
No because I've been here since the year dot ! Married to a local and am in the system so don't have a S1 !
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Blanche
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Post by Blanche »

Did you get a refund of three years CSG, following the EU ruling that it was illegal to charge CSG to holders of S1? We did. But of course they then changed it, and we got charged again for 2016 income.

So does the S1 count for nothing as regards social charges?
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