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Create my bookLMNP depreciation by component
Estimate the annual depreciation of your French furnished short-term rental. Component-based method, capped by useful life.
Your property
Varies by location: 10-15% urban apartment, 20-30% single-family house, up to 40% in rural areas. Not depreciable.
Depreciated separately over 7 years (bed, fitted kitchen, appliances, deco).
Per-component breakdown
| Component | Share | Base € | Useful life | Yearly depreciation |
|---|---|---|---|---|
| Land (non-depreciable) | 15 % | 40 200 € | — | — |
| Structure (foundations, load-bearing walls) | 34 % | 91 120 € | 80 years | 1 139 € |
| Roof | 9 % | 22 780 € | 25 years | 911 € |
| Networks (electricity, plumbing, heating) | 9 % | 22 780 € | 30 years | 759 € |
| Sealing, windows, facade | 9 % | 22 780 € | 20 years | 1 139 € |
| Interior fittings (kitchen, bath, floors) | 13 % | 34 170 € | 15 years | 2 278 € |
| Furniture & appliances | 0 % | 8 000 € | 7 years | 1 143 € |
| Total yearly depreciation | 100 % | 268 000 € | 7 369 € |
Cumulative depreciation over 10 years
Total deducted over 10 years, capped by each component's useful life.
Cumulative depreciation over 20 years
Total deducted over 20 years, capped by each component's useful life.
Cumulative depreciation over 30 years
Total deducted over 30 years, capped by each component's useful life.
Depreciation methodology
Component depreciation (mandatory accounting since 2005) splits the purchase price into parts with different useful lives. Each part is depreciated on its own duration. Land is never depreciable as it doesn't lose value.
Standard durations used in LMNP practice: structure 80 years, roof 25 years, networks 30 years, sealing/windows 20 years, interior fittings 15 years, furniture 7 years. These can be adjusted to property state (e.g. recently redone roof → 30 years).
Notary fees and agency fees can be added to the depreciation basis (spread over the property life) or expensed in year 1. Immediate deduction is usually better when starting because it creates a loss carryforward for up to 10 years.
FAQ — LMNP depreciation
Why split into components rather than depreciate over a single duration?
French accounting rules (CRC 2002-10) require it since 2005. A building doesn't have a single useful life: the roof lasts 25 years, the structure 80. Component splitting reflects this and lets you depreciate short-lived parts faster.
How to estimate land value to exclude from depreciation?
Three methods: (1) notary deed if value is stated; (2) DVF (public land-value database) on comparable plots; (3) standard ratio 10-15% for apartments, 20-30% for houses. The tax authority generally accepts the standard ratio if justified by location.
What happens after a component's useful life ends?
The component stops generating depreciation. Others continue. Over 30 years: fittings (15y) and furniture (7y) are fully depreciated, but structure and networks continue. That's why yearly depreciation gradually decreases.
Can depreciation create a loss?
Not in LMNP: accounting depreciation is capped at the pre-depreciation profit. The unused portion is carried forward for 10 years on future rental income, without time limit. The 'déficit foncier' rule doesn't apply to BIC.
New furniture: depreciate or expense?
Under €600 ex-VAT per functional unit: immediate expense. Above: capitalised and depreciated 5-10 years by type (furniture 7y, appliances 5y, deco 3y). A €1,200 piece is amortised over 7 years, not expensed.
Improvement works: components or expenses?
Repairs (paint, faucet) → immediate expense. Improvements (new kitchen, AC) → capitalised and depreciated with the matching component. Threshold around €600 ex-VAT.
Do I need an accountant to compute my depreciation?
Not required but strongly recommended for year 1. Common mistakes: skipping depreciation, overvaluing land, mis-allocating components. A chartered accountant charges €500-900/year and signs the tax return. Online software (lmnp.ai, JD, Nopillo) costs €200-400/year, no professional signature.
How to integrate notary fees into depreciation?
Two options: (A) immediate deduction as a year-1 expense (loss carryforward 10y, ideal at start), or (B) add to basis and depreciate with the property (smoothing over 20-30y). The choice is final for that property.
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