TL;DR: You first calculate the gross capital gain by comparing the adjusted sale price and the adjusted acquisition price. You then determine the taxable capital gain, to which income tax and social contributions apply according to your situation.
The calculation principle
The gross capital gain corresponds to the difference between the sale price and the acquisition price, after applying the adjustments provided for each of these amounts.
Formula:
Gross capital gain = adjusted sale price − adjusted acquisition price
You must calculate the gross capital gain before determining the taxable capital gain.
The sale price
The sale price is reduced by the taxes paid and the costs borne by the seller in connection with the sale.
The amount obtained constitutes the first term in the calculation of the gross capital gain.
The acquisition price
The acquisition price may be increased by eligible costs related to the acquisition of the property.
For an acquisition for consideration, you may set acquisition costs at a flat rate of 10 % in the case of a building.
For a gratuitous acquisition, the acquisition price is replaced by the market value of the property on the date of that acquisition.
You may also add certain construction, reconstruction, extension, renovation or improvement expenses when they have not already been deducted from your taxable income and do not constitute rental expenses.
From the gross capital gain to the taxable capital gain
After calculating the gross capital gain, you determine the taxable capital gain by applying the rules provided for your situation.
For capital gains of individuals falling under Article 150 U of the General Tax Code, the flat-rate taxation provided for by Article 200 B of the CGI applies, in addition to social contributions.
For individuals domiciled in France, the proportional income tax rate indicated by the regulations is 19 %. Social contributions constitute a separate component.
The calculation therefore takes place in two steps:
- determine the gross capital gain based on the adjusted sale and acquisition prices;
- determine the taxable capital gain, then apply the tax components corresponding to your situation.