France Administrative Court of Appeal Clarifies Deductibility of Renovation Works, Carry-Forward of Property Deficits

The French Administrative Court of Appeal of Douai April 27 issued Decision No. 25DA00739, clarifying the deductibility of renovation works and the carry-forward of property deficits. The taxpayer, a partner in a real estate civil company, sought reinstatement of a 2017 carry-forward property deficit after the tax authorities partially disallowed 2013 renovation expenses for a mixed-use building. On appeal, the Administrative Court of Appeal of Douai found that: 1) extensive renovation works to professional premises constituted reconstruction affecting structural elements and were, therefore, nondeductible; 2) expenditures claimed to improve accessibility for persons with disabilities were nondeductible because the taxpayer failed ...