France Administrative Court of Appeal of Lyon Clarifies Tax Deductibility of Property Reconstruction Expenses

The French Administrative Court of Appeal of Lyon Feb. 19 issued Decision No. 25LY00629, clarifying the tax deductibility of property reconstruction expenses. The taxpayers, private property owners, were assessed additional income tax and social security contributions after the denial of deductions claimed for renovation works on a historic property converted into residential housing. The taxpayers argued that the expenses related to deductible repair, maintenance, and improvement works, that the building was always intended for residential use, and that the initial court failed to address these arguments. The Administrative Court of Clermont-Ferrand denied relief, holding that the works constituted non-deductible reconstruction. ...