Actual rental income: deductible expenses and supporting documents

Under the actual expense method, you deduct from your rental income the expenses you actually paid during the tax year. The rule of the year of payment is key: an invoice paid in January of the following year will be deductible the following year. Each expense must be substantiated: invoices, receipts, condominium fee allocation statements.

This page lists expenses and explains what to keep for each. It does not cover property deficits, furnished rentals, companies, or non-residents. Loan interest and renovations each have their own page.

When are you in reality?

The actual expense regime applies if your household's gross rental income exceeds €15,000, if your property is excluded from the micro-property regime, or if you have opted for it. This option is exercised by filing form 2044 and is valid for three years. The result is reported on form 2042: box 4BA for a profit, boxes 4BB and 4BC for a loss.

The impots.gouv.fr page "Unfurnished Rental" provides a list of examples of expenses (the word used is "including"): administration and management fees, certain works, taxes, insurance premiums, condominium fee provisions, and loan interest. This list is not exhaustive. The following paragraphs summarize the information provided for each item in the instructions for the 2044 special tax return and the 2026 brochure.

The basic rule: paid within the year, proven

The 2026 brochure establishes the principle: only expenses "actually paid during the year" are deductible. The instructions for the tax return use the words "paid," "received," or "disbursed" for work, taxes, interest, and provisions.

Two practical consequences:

• The date of payment matters, not the date of the invoice; ;
• You keep the invoices and statements of allocation of charges, to be presented if the tax authorities request them.

Position by position

Details of the management fees and the €20 flat fee are available on the relevant page. The classification of the work is available on the work page.

Insurance, property tax, co-ownership: the details

Insurance. The BOFiP (French Official Tax Bulletin) requires that premiums be taken out "for the purpose of acquiring or maintaining income." Premiums covering crops, livestock, equipment, or furniture are excluded from this requirement. A separate page explains which line item to use for loan insurance and the resulting deficit.

Property tax. It is deductible for the portion that remains your responsibility. When the tax is contractually assigned to the tenant, the official documents (instructions and brochure) are not worded in the same way: refer to the instructions (line 212) and the brochure, or check with the tax authorities. If the tax notice is not available on the date of the declaration, the instructions allow for the use of the amount paid the previous year, with an adjustment the following year.

Condominium. You declare the total amount of payments made to the property manager during the year on line 230 of form 2044 (line 229 of form 2044); the instructions specify that this overall deduction is mandatory even if you know the exact breakdown of your expenses. The following year, after the accounts have been closed, the adjustment is made on line 231: you add back the payments corresponding to non-deductible or non-recoverable expenses and any positive balance, and you deduct any negative balance.

A 2044 tax return with €8,400 in rent: a numerical example (fictitious profile)

Situation. A landlord rents out an unfurnished apartment in a co-ownership building, collecting €8,400 in rent annually. She is subject to the actual expense method (amounts: hypothetical scenario assumptions).

Issue. Which expenses of the year are included in the declaration, which are excluded, and is the actual amount lower than the micro-property tax regime?

Strategy. Only deductible expenses paid during the year are considered, excluding household waste tax and the invoice paid the following year, then compared with the micro-property tax base.

Result.

Under the micro-property tax regime, the tax base would have been €5,880 (70% of €8,400). The actual amount is €300 lower: deducted expenses represent 33.6% of the rental income, compared to 30% for the standard allowance. If the owner had incorrectly deducted the two non-deductible items, her net income would have been €2,990: a deduction that the tax sources do not allow.

This profile is fictitious. The calculation compares bases, without tax brackets, and does not guarantee any result.

Actual documents and supporting documents: what changes depending on your situation

• Your building : a special regime can be declared on the 2044 special form, the instructions for which detail the lines.
• Your condominium : the adjustment from the previous year is added or subtracted, depending on the closing of accounts.
• Your payments : Shifting a payment from December to January moves the deduction by one year.
• Your financing : interest and borrowing costs follow their own rules, on their page.
• Your montage : company, furnished or residence abroad are subject to other rules.

The rule depends on your situation. No results are guaranteed.