French Property Insider Volume XVII, Issue 25 Thursday, June 20, 2019 • Paris, France
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For Sale: One-Bedroom Apartment on Avenue Gambetta, Nice
Just at the corner of avenue Victor Hugo and avenue Gambetta in Nice, where the new East-West Tramway will have a station, in a beautiful Art Deco building, is this superb 52.57 m2 two-room one-bedroom apartment with a west-facing balcony in perfect condition, fully renovated with high-quality amenities. It is composed of an entrance hall with an independent toilet, living room, fully equipped kitchen, and a large bedroom with bathroom.
I was audited a few years ago by the IRS and they gave me money back — because as a resident of France paying social security, I shouldn't have been paying it to the U.S., too. In fact, it turns out that the IRS has wrongly collected millions of dollars from Americans in France for this very reason. Why am I not surprised?
Due to an improper interpretation of the bilateral tax treaty between the U.S. and France, the IRS had no choice, but to see the error of its ways thanks to a law suit filed by two Americans living in France, Ory and Linda Eshel. The suit that began seven years ago questioned two taxes, the Contribution Sociale Généralisée (CSG) and Contribution au Remboursement de la Dette Sociale (CRDS), having been levied against their French revenues since the early 1990s.
Because Americans are taxed on citizenship vs residency (one of only two countries in the world to do so), citizens living in France still have to pay U.S. tax on their French income, but can apply a tax exclusion to offset it. Until this lawsuit, the IRS argued that the CSG and CRDS were not taxes, but "social charges." It's an ongoing battle by Americans living outside of the U.S. who are still liable to the U.S. for tax when they have no connection with their mother country.
The IRS has admitted its folly in a tax court in Washington, DC last week, that it has collected millions of dollars from Americans living in France thanks to its "improper interpretation" of the tax treaty. This is a big step in the right direction! And I urge you, as American citizens living in France, you should claim back the tax dollars you paid wrongfully and lobby to change unfair tax practices!
The French government announced that on January 1, 2019, it will move to a new income tax withholding system, known as "Prélèvement à la Source." United States citizens working in France may be impacted by this change.You can learn more about the change to France’s income tax system here.
Additional information and frequently asked questions from the Internal Revenue Service are available here.
The U.S. Embassy does not have the authority or the expertise to give advice on either the French or United States tax systems. You may wish to consult a tax professional and the Internal Revenue Service if you are concerned that these changes may impact you.Who Must File U.S. Taxes?
All U.S. citizens and resident aliens must file a U.S. individual income tax return, even if they permanently live outside the United States and may not owe any tax because of income exclusion or tax credit.
Foreign Bank and Financial Accounts (FBAR)
While there are many legitimate reasons to own foreign financial accounts, they may need to be reported, even if no taxable income is generated.
Foreign Account Tax Compliance Act (FATCA)
You may be required to file the Form 8938, Statement of Specified Foreign Financial Assets, with your 2016 income tax returns, when the total value of your specified foreign financial assets exceeds certain amounts. Specified foreign financial assets include foreign financial accounts and foreign financial investment assets not held in a domestic or foreign account. The Form 8938 filing requirement does not replace or otherwise affect a taxpayer’s obligation to file an FBAR (see previous topic).
The United States Internal Revenue Service has no official exchange rate and accepts any posted exchange rate that is used consistently.
For more information and to advocate for your rights, become a member of American Citizens Abroad at americansabroad.org/.
26 rue des Francs Bourgeois, Paris 3rd Arrondissement
The 88 square-meter apartment is in a portion of the building that was once the carriage-house of a 17th-century “Hôtel Particulier” and was designed and decorated by our illustrious interior architect, Martine di Mattéo.
The apartment is situated on three levels:
1) a ground level living room/dining room with fully-equipped kitchen with laundry/utility area,
2) a master suite on the upper level including an arched window that spans the entire length of one wall with a separate toilet, full bathroom with claw-foot tub, shower and sink and
3) a second bedroom and bath on the lower level, all which provide its occupants with a real sense of privacy.
The main entry is on the beautiful courtyard and two large mirrored windows face the street providing complete privacy.
The apartment is being sold with all the furnishings valued at 35,000€.
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