France Administrative Court of Appeal of Toulouse Clarifies Deductibility of Property Renovation Expenses for Taxpayers

The French Court of Appeal of Toulouse Dec. 18 issued Decision No. 24TL00609, clarifying the deductibility of property renovation expenses for real estate income tax. The taxpayer, the owner of several apartments, deducted the cost of two invoices for renovations. Following an audit, the tax authorities imposed additional tax. The Administrative Court of Nimes denied the taxpayer’s request for a full deduction, stating the taxpayer failed to prove the work related exclusively to rented premises, and that an advance payment wasn’t deductible in the year claimed. On appeal, the Administrative Court of Appeal of Toulouse found that: 1) the taxpayer ...