Property capital gains: a park cannot benefit from the exemption for main residences
Under the terms of Article 150 U of the CGI, the principal residence is exempt from taxation on real estate capital gains. This exemption also applies to the immediate and necessary outbuildings in the event of simultaneous transfer.
Real-Life example :
In this case, a taxpayer sold their principal residence, outbuildings and the 93-hectare park. The deed of sale did not distinguish between built and unbuilt properties concerning the sale of the property.
The administration considered that the park did not constitute an immediate and necessary dependency of the main residence. Thus, the administration gave the taxpayer formal notice to file their capital gain declaration within 30 days. Not having filed their declaration on time, the administration proceeded to tax the buildings and part of the park automatically by exempting the buildings and part of the park on the basis of an assessment by the SAFER.
The taxpayer asked the administrative court of Nantes to discharge the additional taxation. However, his request was rejected. The Court of Appeal upheld the judgment.
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