lmnp

LMNP Game Dallas - Loueur Meublé Non Professionnel - LMNP

An informal alliance between the various sectors of the Metro Dallas game and enterainment industries.

GameDallas is working with the Big Design Conference to organize its first Game Design Track. In keeping with GameDallas' mission, we are hoping to attract a balanced attendance of digital and tabletop designers and developers. Things are shaping up quickly, so don't be shy if you plan to attend. There are a limited number of tickets.

What: The Big Design Conference
When: October 17-20, 2021
Where: Crowne Plaza Hotel, Addison, TX

What is GameDallas?

An alliance of professional digital and tabletop game developers from the DFW Metro Area. The rise of
tablet and mobile computing, combined with indie development and venues for self-publishing both
digital and paper games has seen these two distinct sectors of the game industry converging closer and
closer. This happens in Dallas on a daily basis, and yet, the two sides rarely meet. The goal of GameDallas is to bring these professionals together in an atmosphere of networking and collaboration.

What can we expect?

A number of scheduled events and opportunities for ad hoc meetings are sure to make this the regional
game design event of the year. Plans include:

How can I participate?

There are multiple ways an interested business can be associated with the conference:

More questions?

Feel free to contact me:
Kevin O’Gorman - 972-372-9773 - kevin@gamedallas.org

Our Audience, Your Reach

We pride ourselves in having the best conference
audience ever. Just look at our attendee
breakdown and see how our audience speaks for
itself.
Attendee Breakdown
More than 50% are under the age of 35
More than 50% are decision makers
They are a highly educated group of people:
92% have a Bachelor’s degree
55% have a Master’s degree
10% have a PhD
While technically Big Design is a local
conference to Dallas/Fort Worth, 60% of
our attendees travel from out of town to
attend
56% of attendees are influencers at their
work, while 31% are actual decision makers
Spending Habits
Our audience is in love with technology and they
aren’t afraid to show it:
Median salary: $84,000 USD
Roughly 50% of our attendees earn $90,000+
annually and over $100,000 with 10 years’
experience
Nearly every attendee owns more than one
type of electronic device including wireless
home networks, tablets, smartphones, MP3
players, home theater systems, and portable
computers
Gaming: 64% own at least one game console
while 21% own two or more game consoles
Our attendees also are heavy users of
smartphone games and apps
Nearly 100% own a smartphone and nearly
half of which are iPhones
Social and Broadcast Media
Behavior
Our attendees are heavily into social media and
avid consumers of news and original content. For
example, Twitter is Big Design’s main back
channel.
Basic Twitter Details from 2012
2,415 Total Tweets
1,626 Orginal tweets
919 Tweets directed at speakers or the
conference itself
789 Retweets
194 Twitter Pics
Other Media Details
95% of our attendees watch videos from an
online source like Netflix, Hulu, and
Youtube
76% of attendees are also fans of traditional
broadcast media like NBC, CBS, Fox, and
ABC
50% of our attendees actively use DVRs

Attendees Tweet from the Front Lines

We heavily monitor social networks to maintain
audience satisfaction. We have an assigned social
media manager who monitors and responds to
feedback. Check out these Twitter posts from
previous conferences.
2010
stillatulsagirl: @jmspool you ROCKED the
closing keynote! :) #bigd10
cambeck: @grillo CS5 is super sa-weet!
Thanks for the demo at #bigd10
randyhoyt: @grillo Your live demo of Cs5
was amazing. Thanks! #bigd10
teriguill: Big Design rocked my socks. Now
at the afterparty. #bigd10
2011
hursman: looks like a slew of presentations
from #bigd12 are available on slideshare here
http://www.slideshare.net/tag/bigd12
@BigDesign
rotkapchen: So pleased that the BigDesign
conference will be hosting the Texas premier
viewing of this important documentary.
http://lnkd.in/3yxwFP
MrAlanCooper: RT @randyhoyt: License
plate FF0000 on a red car. I must be at a web
design conference. #bigd11
http://twitpic.com/5r67my
j_lloyd: My notes from @jmspool's talk
about UX and Mobile: In The Perfect Storm
at #BigD11 - Always a pleasure to see him
talk
2012
Slideshare: Presentations from the Big
Design Conference 2012 are featured in the
Event Spotlight on our home page. #bigd12
jmspool: Thanks to everyone who attended
my #BigD12 Keynote last evening. You were
a great audience. My slides:
http://db.tt/9TIsHqXb
sharrush: @kia_wright Thanks! Good to
know you liked the video.@BlindFilmCritic
is a big fave of
minehttp://blindfilmcritic.com/archives/249
4 #bigd12
onwardsearch: Big Sponsors! Big Designs!
#BigD12 BIG SHOW – It’s Texas! would
you expect less? @google @onwarddallas
geek_at_heart: Values from CooperU.
Activity: list environments you are inspired
by outside your industry. Like kindergarten.
#bigd12
daalis: Sketching Matters
http://www.slideshare.net/powlagua/sketchi
ng-matters … one of my favorite
presentations from #bigd12
RosenfeldMedia: We're proud to sponsor
Big Design (#bigd12), June 1-2 in Dallas.
@jmspool @russu @jeremyj and lots more
great speakers!
billswallow: Good summary of what the
BigDesign conference is all about. I'm
looking forward to #bigd12.
http://bit.ly/r7hOEn
DU5TB1N: Big Design 2012: Re-designing
for Change http://bit.ly/QqSdFE by
@karenbachmann
stcaccess: Super write-up on #BigD12:
"Lessons in Accessible, Empathetic Design".
http://zite.to/LXGBs6 /v @Jennison
credera: Great presentation - What should we
build? Defining the Jobs to be Done
http://ow.ly/bp5uI @marcelosomers
#BigD12

Join These Legendary Sponsors of Previous Big Design Events

Google · Adobe ·AT&T ·Lincoln ·Microsoft loueur en meublé non professionnel ·Mashable · TechSmith · Sprint · User Interface Engineering
Sapient · Onward Search · UserZoom · Usabilla ·Level Ten Interactive · Loop11 ·Madcap Software · Mashable
Optimal Workshop · Axure · Slalom Consulting · MadPow · Balsamiq · Sapient Nitro · Projekt202 · The Nerdery
FatDUX · Bottle Rocket Apps · AnswerLab · UTD · Tobii UserLytics · MagicLogix · Rosenfeld Media
xCube Labs · Telerik · SMU · TM Advertising · Improving Enterprises · Rackspace · Usertesting.com
Usability Sciences · Aquent · Apogee · LinguaLinx · Captura · Bestica UX ·Human Factors International
Golin Harris Ineractive · Touch Titans · Cooper · Extensis · InfoVision · Texas A&M · Commerce · Knowbility
O’Reilly · UX Booth · The Creative Group · Alcatel-Lucent · Connective Hub · Morgan Kaufman · Collab Net

LMNP: the real regime for tax exemption through depreciation (2020)

Furnished rentals are often deemed to be fiscally advantageous for lessors. In reality few owners know and use this status correctly.

We will explain in this article how the real LMNP (Non-Professional Furnished Rental) status scheme will allow you to save a significant share of taxes on your rents thanks to depreciation and a tax regime on the most- very advantageous values .

LMNP: micro-BIC or real regime?
What conditions to have LMNP status?
The majority of our rental management clients rent without knowing it with the status of non-professional furnished rental agency (LMNP) . It is defined in opposition to the status of professional furnished rental company which only applies if the following two conditions are met:

1 ° The annual income withdrawn from this activity by all the members of the tax household exceeds 23,000 €;
2 ° These receipts exceed the income of the tax household subject to income tax in the categories of wages and salaries within the meaning of article 79, industrial and commercial profits other than those derived from the furnished rental activity, agricultural profits, non-commercial profits and incomes of the managers and associates mentioned in article 62.
Source: Article 155 of the General Tax Code
The obligation to register in the commercial register was recently repealed ( sources ).

If you do not respect these two conditions simultaneously , congratulations you rent furnished accommodation as a non-professional furnished rental company (the regime does not apply to empty rentals).

Choice of the simplified real regime in LMNP
Once you have validated that you meet the LMNP criteria, you have the choice between two regimes for declaring your rents considered as industrial and commercial profits (BIC):

the micro-BIC where you declare a fixed fee corresponding to 50% of the rent collected
the real plan where you declare your rental charges to the real, with in addition depreciation which constitute the whole interest of the plan
Let’s go into the details of this real LMNP regime, which is one of the last tax niches available to the individual lessor - we are talking about a tax niche because, as you will see, you will be able, under conditions, to be completely exempt from taxation on your rents .

How to opt for the real LMNP regime?
Rent threshold and real LMNP option
If your rents collected during the calendar year exceed 70,000 € , the real regime automatically applies.

If your rents are less than 70,000 € you can opt for the real scheme (otherwise by default the micro-BIC scheme and its 50% reduction applies).

In the case of a first furnished rental, you have the obligation to declare yourself at the clerk of the commercial court by sending the declaration P0i within 15 days of your start of activity, you will find an overview opposite. On this declaration you can opt for the real plan. The real LMNP option will therefore apply for two years, starting with the income for the first year of activity.
Annual rents Micro-BIC system Real diet
Less than € 70,000 Automatic Optional
Over € 70,000 Impossible Mandatory
Deadline for switching from micro-BIC to real
You made your P0i declaration at the start and you want to switch to the real LMNP? You must request the change from the tax authorities before February 1 of the calendar year in which you wish to benefit from it (therefore before February 1, 2020 if you wish to declare your 2020 income to the real).

As for the micro-BIC, the real option is activated for 2 calendar years and tacitly renewed every 2 years.

Late P0i declaration
Many homeowners are unaware that an initial POI declaration is required. If necessary, the administration will not be aware of your LMNP activity and you will probably have declared your rents to the micro-BIC regime.

Our recommendation is to make this P0i declaration as quickly as possible , in good faith explaining your delay by a breach of your obligation. Better late than never and the tax authorities can be understanding.

The advantage of a declaration P0i even late is to be able to choose a posteriori the real regime . So if you started a furnished activity in 2019, that you declare your activity late in 2020, it is possible to opt for the real plan for your 2019 income (and for your de facto 2020 income).

We recommend that you have the assistance of our partner accountant (see below) to make up for your tax situation. The regularization procedures are possible roughly until the summer of 2020 for 2019 rents.

Reporting obligation by an accountant in LMNP
Even if it is not compulsory, we strongly recommend that you go through an accountant to make your declaration in real LMNP.

The real option requires you to make an income statement and an asset balance sheet with depreciation by components which we will detail in the next sections. These are complex concepts that are sources of potential errors.

Note that the fees of our partner accountant are between 500 and 600 €, which you can deduct from property income; in addition, additional membership in an approved management center (CGA) allows you to recover 2/3 of the accountant's and CGA's fees in tax reduction .

It is therefore ultimately a lot of time saved, great security on assembly and costs of the order of a few hundred euros maximum (compared to the thousands of euros in taxes that you will probably save).

Free LMNP simulation
without obligation
Our team has supported more than 40,000 lessors in their rental investment project since 2012.
If you wish to advance on a LMNP project, our partner accountant can help you validate your eligibility for the system and the interest of choosing this option.

Arrange a telephone appointment with our accountant

What charges to deduct in real LMNP?
Principle of amortization in LMNP
The principle of the real regime is quite simple: unlike micro-BIC where you deduct a 50% charge for charges you will have to deduct your charges according to their actual values.

The actual regime for furnished rentals has two particularities compared to the actual regime for empty rentals :

the list of deductible expenses is not defined (which is also the case in a company receiving industrial and commercial profits)
large expenses are depreciated over several years, just like the value of the property that you can depreciate each year, we speak of depreciation
What is depreciation?
Depreciation is an accounting concept (so it is not a question of real financial flows) allowing you to smooth the impact of an investment or a depreciation of the value of an asset over several years.

In the case of a furnished rental, if you spend € 10,000 to redo a kitchen, you will be able to smooth this out over several years. Regarding depreciations, you can also consider that your roof loses its value each year, you will therefore be able to charge a fictitious expense each year, corresponding to the loss of value of your building asset which has an aging roof.

Deductible actual expenses in the calendar year
In the absence of an exhaustive list, you will be able to arbitrarily attribute to your rental income for the year the small expenses you had to rent your property. The limit of 500 € seems to appear from several unofficial sources but the simplest will remain to let choose your chartered accountant who will take care of this declaration.

These small chargeable expenses could in particular be:

loan interest and borrower insurance
agency fees for the purchase and notary fees if you decide not to amortize them (see below)
agency fees for the rental or drafting of the lease
insurance premiums (PNO or unpaid rent insurance)
replacement of small household appliances
property tax and CFE
current condominium fees excluding works
Actual expenses depreciable over several years
Large expenses that you incur over the calendar year will be amortized over several years . Each type of expenditure has its specific amortization period roughly corresponding to the duration of use of the expenditure that you incur.

Your accountant will take care of breaking down each expense, but here are some simple and usual examples:

A sofa at € 2,000 amortized over 5 years: you will deduct € 400 of charges each year for 5 years
Painting work of € 10,000 amortized over 10 years: € 1,000 each year for 10 years
Roof repair work of € 30,000 amortized over 30 years: € 1,000 each year for 30 years
For agency fees and notary fees, you can amortize them over a period equivalent to that of the asset (see next section), if you have decided not to charge them as direct actual expenses for the first financial year.

This amortization of large expenses has the advantage of smoothing out expenses over several years and thus not ending up with a large deficit one year and then positive taxable years.

Depreciation period in real LMNP
The main specificity of the real plan is to be able to amortize your assets in addition to amortizing your large expenses.

As we have seen, depreciation is an accounting depreciation which will be deducted from your rents as a “fictitious” expense each year. We are talking about a fictitious expense because you are not really going to disburse it, it will simply be charged to income and therefore decrease your tax base.

In the same way as the amortization of large expenses, the amortization of your property (de facto entered in the assets of your balance sheet of rented out furnished) must be managed by your accountant because it responds to precise accounting rules, in particular on the breakdown of real estate assets into components, each with its own depreciation period .

In order of magnitude, you will be able to amortize 85% of the value of the property over an indicative period of 30 years . the 85% is usually retained as the value of the property, the remaining 15% being the value of the land which is not depreciable.

The 30 years of depreciation are also given as an indication, your accountant will make a breakdown by components, each component having its own depreciation period. Here are some examples from the tax site :

Component Share in asset value Depreciation period
Structure 70% 80 years old
Roofing 10% 25 years
Electrical installation 5% 25 years
Interior fittings 8% 15 years
Take our average value of 85% amortized over 30 years. If you therefore bought a property for € 200,000, you will therefore be able to charge an annual depreciation of € 5,666 (200,000 X 0.85 / 30). As we will see in the following example, this depreciation of the assets will allow you to greatly reduce your taxable income.

Real LMNP simulator: cancel (almost) your taxes
Example of a real LMNP with low rental yield
We will take below an example of a two-room apartment bought 400k € net seller in Paris rented 1500 € excluding charges with a loan at 200K €.

Diet Real diet Micro-BIC Comments
Rents received € 18,000 € 18,000 Property at 400k € net seller rented furnished 1500 € / month HC
Current expenses € 1,500 Insurance against unpaid rent, household appliances, minor repairs
Loan interest € 2,000
Amortized works € 1,000
Amortization well € 12,000 € 400k amortized over 33 years
Taxes € 1,000 Property tax + CFE
Fixed costs amortized € 4,500 Possibility to amortize agency fees and notary fees
Total charges € 22,000 € 9,000
Taxable income - 4000 € € 9,000 #magic
Taxes € 0 € 3,600 Marginal portion at 45%

In the example above, we can see that the depreciation of the property at 3% almost compensates for all the rent (remember that gross yields in Paris are only 4% in order of magnitude on furnished rentals).

At low rental yield, the depreciation of the property is therefore preponderant . If you rent in an area with a rental yield of 8% (for example a furnished house in Saint-Malo), the depreciation of the property will be in proportion to the rent twice as low.

Finally, note in the previous table the possibility of deducting your loan interest as in empty rental, but also to amortize your notary fees and your agency fees (respectively € 28k and € 16k amortized over 10 years).

Cost of simplified real lmnp accounting
The previous example saving you € 3,600 in taxes over the year has a hidden cost: the fees of the accountant who will take care of your tax package (income statement, balance sheet and depreciation). It is actually complex, time-consuming and risky to take care of this declaration, a chartered accountant possibly coupled with an approved management center will cost you around 600 € per year, fixed cost per lot possibly declining depending on the size of your real estate portfolio.

Free LMNP simulation
without obligation
Our team has supported more than 40,000 lessors in their rental investment project since 2012.
If you wish to advance on a LMNP project, our partner accountant can help you validate your eligibility for the system and the interest of choosing this option.

Arrange a telephone appointment with our accountant

Limit of the deficit and possible carry-over into real LMNP
The previous example showed a deficit in the income statement of your assets. Several rules frame this deficit which we will summarize for you.

Deficit limit due to depreciation
In our previous calculation, the depreciation of the asset was the main accounting expense creating the deficit in fine. In practice, it would have been necessary to withhold taxable income of 0 because the depreciation of the asset cannot create a deficit or increase it if it already exists following the charges of actual expenses (direct charges or depreciated works).

On the other hand, it is quite possible to create a deficit from real spending alone. The question then arises of carrying over the deficit to the following years.

Source: Bofip tax site

Deficit carry forward
A deficit over a year (which can only be created by actual expenditure) can be carried over to the following years within the limit of 10 years .

The unused portion of the depreciation of the property (as a reminder, you can only deduct over a financial year up to the residual positive balance) can be carried forward indefinitely , in any case our reading of article 39C of the General Code taxes .

Resale in LMNP: calculation of surplus value
It is not the depreciation of the property that makes the real regime for furnished rentals a tax niche; it is the calculation of the capital gain of the depreciated property .

In conventional business accounting, when an asset is sold, the capital gain serving as the basis for taxation is calculated by making the difference between the sale price and the purchase price of the depreciated asset.

In our example this would mean that if you buy a € 400k good that you sell it € 430k ten years later after having depreciated 2% of the good each year, you will roughly pay a capital gain on € 430k - 80% of 400k € = 110k €. Basically all the depreciation you took from your rent ends up in the gain.

The magic of the real LMNP regime lies in the method of calculating the capital gain which is that of individuals, ie a calculation without taking into account the depreciation (or depreciation) of the asset .

In the previous example, you will therefore only pay taxes on € 30k of capital gain (more details on the taxation of capital gain here ), so you have actually earned the € 80k amortized during the lease.

Actual LMNP cumulation with other montages (Pinel, SCI, etc.)
In conclusion we wanted to remind you how to structure your real LMNP with other wealth and tax arrangements that you have probably heard of.

For Pinel , the answer is simple: the real LMNP is not possible because the Pinel system requires renting empty. The Pinel and the real LMNP are the two tax systems most recommended by wealth management advisers. The real LMNP is our preference insofar as you have no constraints on the zoning of the property, the level of rents or the ceiling of resources of the tenants (see the match Pinel vs real LMNP ).

If you invest in several , you will no longer be able to benefit from the advantages described in the article if you opt for an SCI, because who says SCI in furnished accommodation says SCI to the IS (see our article on the choice SCI to the IS or to the IR ). You will therefore have to go through a family limited liability company if you want to invest with relatives and make real LMNP to several.

If you wish to rent under an ANAH agreement and benefit from the Old Pod , the real LMNP is also not possible because the accommodation must be rented empty. Ditto for the Malraux systems (renovation in the city center) and Girardin (investment in the overseas departments).

—–

Here in summary the real regime is interesting in areas with low rental yield, for substantial rental amounts and a significant marginal tax bracket allowing you to largely absorb the additional cost of an accountant.