Capital gains tax on adjoining gite11 Replies
Having sold, prior to completion, the attached small house of our main and only residence, we realise that we have to pay capital gains tax. Same house number, you could wander through from one to the other internally - but for 8 weeks or so in the summer it was a gite and because I have obviously declared the income of this, the notaire suggests we have to pay capital gains on this. It's not easy to work out as we bought it all together, eg. Main family house with attached small house. And we have used the small house as our own house, to sleep in and eat in etc but the sticking area is the two months a year we tried to let it out as a gite. I'm not really questionning the french law - it did surprise us to learn that our only house qualified for capital gains but am wandering if anyone else has been in this position and if there are any other pointers we should consider. We know that we need to gather factures of official work done by registered enterprises to offset. 34% we understand the tax to be. Many thanks for any other info or thoughts.