An investor who receives furnished rents and chooses the real regime can, from the first year, see a taxable base close to zero thanks to depreciation. The mechanism relies on an accounting entry: the loss of value of the property and its furniture is spread over several periods, which reduces the taxable profit under BIC.
Understanding the precise functioning of depreciation in LMNP allows for informed decisions between the micro-BIC regime and the real regime.
Reintegration of depreciations upon resale: the 2025 rule that changes everything
Since the finance law for 2025, the depreciations deducted during the rental period are reintegrated into the calculation of the capital gain upon the sale of the property. In practical terms, the acquisition price used to determine the capital gain is reduced by the total of the depreciations applied. The tax advantage obtained each year is therefore partially paid back upon exit.
This rule modifies the holding strategy. A landlord who planned to sell after about ten years must now factor this tax overcost into their net profitability calculation. The holding period becomes a central parameter of the LMNP structure.
However, one can delve deeper into the issue of depreciation in LMNP with Interactif Immo to assess the precise impact of this reintegration on different resale scenarios.
Key point to remember: service residences (student, senior, medico-social) remain excluded from this reintegration. For these properties, depreciation does not affect the capital gain at the time of sale, which preserves the interest of the real regime throughout the investment duration.
Calculation of LMNP depreciation: breakdown by components
Real estate is not depreciated as a whole. The accounting method requires breaking down the acquisition price into components, each having its own useful life. The land itself is never depreciated: it does not lose value through use.
Real estate components and their durations
The typical breakdown distinguishes the structural work, roofing, technical installations (electricity, plumbing, heating), and interior fittings. Each component is assigned a linear depreciation period that reflects its actual usage duration.
- Structural work and structure: depreciation over a long period, generally several decades, reflecting the solidity of the building
- Roof, facade, and waterproofing: intermediate duration, shorter than structural work as these elements are exposed to the elements
- Technical installations (plumbing, electricity, heating): even shorter duration, related to equipment obsolescence
- Interior fittings (equipped kitchen, flooring): the shortest duration among real estate components
Furniture: rapid depreciation
Furniture, appliances, and bedding are depreciated over short durations, often between five and ten years depending on the nature of the item. Furniture generates high depreciation annuities in the first years, which significantly helps reduce the taxable base at the start of the activity.
Renovation or improvement work carried out during the lease is also depreciable. It is linked to the relevant component (roof, electricity, fittings) and the corresponding duration is applied.
Cap on deductible depreciation and carryover of surplus
Depreciation cannot create a tax deficit in LMNP. The capping rule limits the deductible amount each year: the deductible depreciation cannot exceed the rents minus other charges. If current charges (loan interest, property tax, insurance, management fees) already absorb a large part of the rental income, the excess depreciation fraction is not lost.
It can be carried over indefinitely. This creates a stock of deferred depreciations, which can be utilized in subsequent years when charges decrease, typically after the loan is repaid. This unlimited carryover distinguishes depreciation from classic property deficits, which have a time limit on carryover.
Unclassified tourist accommodation: forced switch to the real regime
The reform targeting unclassified Airbnb-type rentals changes the landscape. Beyond a certain revenue threshold, unclassified tourist rental landlords switch to the real regime. They must then keep accounts and apply depreciation, whether they wanted to or not.
For these profiles, accounting maintenance represents an additional annual cost (accountant fees, management software, membership in an approved management center). Depreciation largely compensates for these costs, but net profitability depends on the volume of rental income. On small amounts, the accounting cost can absorb most of the tax savings.
Returns vary on this point depending on the property’s location and actual occupancy rate. A tourist rental occupied a few weeks a year does not benefit from the same leverage effect as a student accommodation rented for ten months out of twelve.
Accounting declaration and common errors in LMNP
The declaration of depreciations is done within the framework of the tax package (BIC forms). Two common errors often occur among landlords who manage their accounting alone.
The first is to depreciate the land. If the land/building breakdown is not documented (notarial deed, estimate), the tax administration may challenge the entire depreciation. Separating the land value from the acquisition is a non-negotiable step.
The second error concerns the start date of depreciation. Depreciation begins on the date of actual rental, not on the purchase date. A property acquired in January but rented out in September generates annuities only from September, on a pro-rata basis.
Depreciation in LMNP remains the most direct tax lever for an investor in furnished rental. With the reintegration upon resale coming into effect in 2025, the overall profitability calculation can no longer be limited to the rental phase: the exit must be modeled from the initial setup.