TLDR: If your net taxable real estate assets exceed €1.3 million, you must declare IFI with your annual income tax return, using form no. 2042-IFI and its annexes. If you do not file an income tax return in France, use form no. 2042-IFI-COV-K.
Who must declare IFI?
You are concerned if the net taxable value of your real estate assets exceeds €1.3 million.
If your tax residence is in France, you must take into account your real estate assets located in France and abroad. If you are not tax-resident in France, you must take into account your real estate and real estate rights located in France, as well as the real estate portion of certain units or shares.
In the event of notorious cohabitation, one of the two cohabitants’ declarations must include the taxable real estate assets and real estate rights of both cohabitants, as well as those of minor children for whom either cohabitant is legally responsible for administering the assets.
If you are an adult child attached to your parents’ tax household, you must file a separate IFI declaration. Your taxable assets must not be reported on the IFI declaration of the tax household to which you are attached.
Which form should you use?
If you file an income tax return no. 2042, you must declare IFI on form no. 2042-IFI, also identified as CERFA no. 15798. You must enter the information needed to calculate your taxable real estate assets and attach the annexes required by the administration.
If you do not file a comprehensive income tax return in France, you must use form no. 2042-IFI-COV-K, also identified as CERFA no. 15864. This situation notably concerns certain non-resident taxpayers and certain attached adult children.
The forms, their annexes and the explanatory notice are available on the impots.gouv.fr website.
What information should you provide?
You must state the gross value and the net taxable value of your taxable real estate assets on your annual declaration. The annexes are used to describe and assess these assets, as well as the liabilities that may be associated with them.
Assets exempt from IFI do not have to be included in the declaration, subject to the specific rules applicable to certain exemptions.
In the event of notorious cohabitation, one of the two cohabitants’ declarations must show the gross value and the net taxable value of the taxable real estate assets of both cohabitants and the minor children concerned, together with the corresponding annexes.
Where should you file the declaration?
If you are resident in France and do not have a pre-identified declaration, you must file your IFI declaration with the tax office for your place of residence.
When you complete a form no. 2042-IFI using an online service, the competent service is the one indicated when the declaration is submitted.