TLDR: You do not benefit from a single rule for all tax reductions. Depending on the scheme, you may maintain or continue the benefit if you receive the property or its usufruct and if you take over the commitments that still apply.
A different rule depending on the tax scheme
The death of one of the members of a couple subject to joint taxation may allow the reduction already obtained to be maintained or the benefit to be continued for the remaining period. However, the conditions depend on the tax scheme concerned.
When the transfer of ownership or the split ownership results from the death, you may, as the surviving spouse awarded the property or holder of its usufruct, retain or continue the benefit if you comply with the commitments provided for until their term. This rule does not automatically extend to all tax reductions.
For the scheme provided for in Article 199 decies E of the CGI, you may request that the reduction be transferred to your benefit for the remaining period, under the same conditions and according to the same procedures.
Investments overseas
For overseas investments covered by Article 199 undecies A of the CGI, the death of one of the members of the couple does not call into question reductions already claimed.
If the death results in the transfer of ownership of the property, shares or stocks, or a split ownership of the property right, you may request that the reduction continue for your benefit if you are awarded the property or hold its usufruct. The continuation concerns only the period remaining at the date of death and remains subject to the same conditions and procedures.
The social-purpose hotel residence
For an investment in a social-purpose hotel residence, you may request that the reduction be maintained for the remaining period if you are awarded the property or are its usufructuary. You must then take over the rental commitment in your own name.
If you do not take over this commitment, the reductions already claimed by the deceased taxpayer may be called into question.
When the death occurs during a year in which the reduction is spread over time, you may allocate the share between the joint return and your individual return. In subsequent years, the shares are deducted on your individual return.
When the death occurs after the reduction has been deducted, during the nine-year commitment period, you retain the benefit if you comply until its term with the commitment to rent the unfurnished property to the operator of the social-purpose hotel residence.
The year of death and the conditions to be verified
For the year of death, the tax relating to profits and income that have not yet been taxed is assessed in the name of the couple. You are personally liable for tax for the period after the death.
To maintain or continue a reduction, check the following in sequence:
- the tax scheme applicable to the investment;
- your situation with regard to the property: award, full ownership or usufruct;
- the period remaining;
- the commitments that must still be fulfilled;
- the conditions specific to the scheme concerned.
The available sources do not make it possible to identify a single procedure, form or deadline for all tax reductions. You must therefore apply the rules of the scheme concerned, without automatically transposing those of another scheme.