Since 1 January 2006, insurance premiums relating to property used in rental property are tax deductible to their actual amount. It is a novelty allowed by the tax to replace part of the reduction from 14% previously authorized for the general scheme. To be deductible, the insurance premiums have been paid from 1 January of the year.
The insurance premiums relate to both rental contracts signed with an agent as a real estate agent or lawyer for example, than those made directly with an insurance company.
What are the insurance deductible and for what risks?
You can deduct insurance premiums covering risks such as fire, water damage, natural disasters, theft, vandalism, glass breakage or the liability of the lesser (owner).
Insurance premiums for unpaid rent: a special case.
Insurance premiums for unpaid rent offer the subscriber a choice between two possibilities: The first solution is simply to deduct the insurance premium income property as well as premium property and casualty insurance. The second solution, provided it does not deduct the insurance premium income property, is to seek to obtain a tax credit on income. This tax credit is estimated at 50% of total insurance premiums have been paid during the tax year.
A new system is put in place since summer 2006: This is the guarantee of risks (GRL).
The condition for the owner to take out an insurance policy for unpaid rent from certain insurance companies as part of the operation. The tenant, it must possess a passport that LRG is available from collectors of 1% housing.
Landlords must also note that to purchase a warranty contract rental risks, their rent should not exceed the sum of 2,300 euros a month and that housing should be reserved only for a primary residence.
