{"id":1043,"date":"2024-11-20T08:49:55","date_gmt":"2024-11-20T07:49:55","guid":{"rendered":"https:\/\/fiscalclear.com\/modifying-the-duration-of-a-usufruct\/"},"modified":"2024-12-19T15:03:31","modified_gmt":"2024-12-19T14:03:31","slug":"modifying-the-duration-of-a-usufruct","status":"publish","type":"post","link":"https:\/\/fiscalclear.com\/en\/modifying-the-duration-of-a-usufruct\/","title":{"rendered":"Modifying the duration of a usufruct?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Extending or reducing the duration of a usufruct: practical and tax implications<\/p>\n\n<h4 class=\"wp-block-heading\"><strong>Extending the duration of a usufruct<\/strong><\/h4>\n\n<ul class=\"wp-block-list\">\n<li><strong>Patterns<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Amortize renovations to avoid a benefit in kind (ATN) at the end of the usufruct.<\/li>\n\n\n\n<li>Allow your company to pay compensation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Procedure<\/strong>:\n<ul class=\"wp-block-list\">\n<li>The extension is agreed between you and your company, preferably by notarial deed to make it enforceable against third parties.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Term<\/strong>: Up to a maximum of 99 years, including the initial term.<\/li>\n\n\n\n<li><strong>Tax consequences<\/strong>:\n<ul class=\"wp-block-list\">\n<li>The compensation paid is a depreciable investment for the company and tax-free for the beneficiary.<\/li>\n\n\n\n<li>You will be taxed on an ATN if you occupy the property free of charge.<\/li>\n\n\n\n<li>Compensation must reflect real economic value to avoid taxation on the surplus.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Registration fees<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Case law: \u20ac50 for the deed of extension, as this is not a transfer of ownership.<\/li>\n\n\n\n<li>Flemish tax position: possible application of sales tax, although questionable.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n<h4 class=\"wp-block-heading\"><strong>Reducing the duration of a usufruct<\/strong><\/h4>\n\n<ul class=\"wp-block-list\">\n<li><strong>Patterns<\/strong>:\n<ul class=\"wp-block-list\">\n<li>The asset is no longer used by the company.<\/li>\n\n\n\n<li>Simplified estate planning.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Procedure<\/strong>:\n<ul class=\"wp-block-list\">\n<li>The company renounces the usufruct by notarial deed, possibly in return for compensation equal to the residual value.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Tax consequences<\/strong>:\n<ul class=\"wp-block-list\">\n<li>The company can amortize the residual usufruct using exceptional amortization.<\/li>\n\n\n\n<li>If you pay an indemnity, it is taxable for the company after deduction of the book value and non-deductible for you.<\/li>\n\n\n\n<li>The end of the usufruct puts an end to taxation on a NTD linked to free housing.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Registration fees<\/strong>:\n<ul class=\"wp-block-list\">\n<li>In principle, the fee is \u20ac50.<\/li>\n\n\n\n<li>If the waiver is qualified as a disguised sale, sales tax could apply (rare, burden of proof on the tax authorities).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n<h4 class=\"wp-block-heading\"><strong>Examples in figures<\/strong>:<\/h4>\n\n<ol class=\"wp-block-list\">\n<li><strong>15-year extension<\/strong>: Compensation of \u20ac120,000, amortized over 15 years by the company. You are taxed on a NTD if you occupy the property. <\/li>\n\n\n\n<li><strong>5-year reduction<\/strong>: indemnity of \u20ac75,000 paid to the company. The company depreciates \u20ac50,000 and is taxed on the remaining \u20ac25,000. <\/li>\n<\/ol>\n\n<p class=\"wp-block-paragraph\">In conclusion, these operations need to be carefully evaluated from a tax and legal point of view, to avoid unforeseen costs or litigation.<\/p>\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Extending or reducing the duration of a usufruct: practical and tax implications Extending the duration of a usufruct Reducing the duration of a usufruct Examples in figures: In conclusion, these operations need to be carefully evaluated from a tax and legal point of view, to avoid unforeseen costs or litigation.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1043","post","type-post","status-publish","format-standard","hentry","category-non-classifiee"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/posts\/1043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/comments?post=1043"}],"version-history":[{"count":1,"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/posts\/1043\/revisions"}],"predecessor-version":[{"id":1044,"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/posts\/1043\/revisions\/1044"}],"wp:attachment":[{"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/media?parent=1043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/categories?post=1043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/tags?post=1043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}