There are different kinds of taxes, which apply to different types of income, and sometimes only in certain situations. To understand how to reduce your taxes, it is interesting first to understand which taxes are talking about precisely. IRS tax resolution services provide the best advice for tax-related cases at affordable prices. And they perform a good presentation on it.
1. Income tax:
It includes the tax on income received by individuals in the household, reimbursement of social debt (CRDS), and the general social contribution (CSG).However, it did not escape you; income tax is now collected via the withholding tax. To organize and define the amount of these levies, the system of tax brackets remains valid. New tax brackets for 2022 income have been announced. Taxable income does not correspond to your total income over a year.
2. The housing tax: gradual reduction
The housing tax is a tax relating to your accommodation. It is a local tax. It is determined according to the location of your main and secondary residences (if you have one) and your tax situation. For example, a workshop, a private car park, a garage, etc.). These outbuildings will be considered in the calculation of your property tax, even if they are neither furnished nor attached to your accommodation. However, certain situations allow you to be exempt from housing tax. This may be your case if you:
• live alone
• live with your marriage or Pacs partner
• are over 60
The housing tax has been in the process of being abolished or reduced since 2018. It is, therefore, possible that in 2021, you will not have already paid any housing tax. Or that it was lower than in previous years, for the same accommodation. To reduce the housing tax, or at least its impact on your budget, you can pay it monthly. Indeed, this tax is annual, but you can apply for a monthly instalment.
3. Property tax
Like housing tax, property tax is a local and annual tax based on your situation on January 1 of each year.Its principle is to collect a tax on built and unbuilt properties of owners and usufructuaries. The amount of property tax is based on the property's value (whether it is a building: house, apartment, building, or land) estimated to be rented.
In other words, this corresponds to the annual rents that you would receive. The tax administration has set up a method for calculating the property tax, accessible to all. The calculation variables are the cadastral value, the tax base, and the local tax rate (by the municipality).You can apply for a monthly payment to reduce the property tax, just like for the housing tax.
4. Real estate wealth tax (IFI)
The real estate wealth tax was designed to substitute for the Solidarity Tax on Wealth (ISF). It has been in force since 2018 and completely replaces the ISF, which is no longer used. The real estate wealth tax corresponds to real estate assets. This applies to the property owned by all the members who make up the tax household (the person living alone or as a couple and the property of minor children, if the parents have legal administration).
As for taxable real estate, here is the type of property:
• Apartments, houses, and outbuildings (cellar, garage, private parking, etc.), whether inhabited by the owner or rented
• Building land, agricultural land, and all types of buildings not built or under construction on January 1 of the year in question
• Historical monuments
• Real estate rights (of use, housing, etc.)
• Shares of buildings represented by real estate companies.