Litige immobilier : comprendre vos droits et recours

Application pratique:

This 2007 Cour de cassation ruling confirms that Article 885 G (now reflected in IFI rules) blocks any reduction based on the split between usufruct and bare ownership: the usufruct holder must declare the FULL value of the property, not a discounted percentage. The mother should instruct her notaire or accountant to report 100% of the property's market value in her IFI return, not an abated figure. She should keep the 2015 donation deed and any prior valuations on file in case of a tax audit. A 30-minute consultation with a real estate lawyer is recommended before the next IFI filing deadline (mid-June 2027) to confirm no other exemption applies.

Application pratique:

Under this case law, the bare owner is generally NOT taxed on the dismembered property at all when the usufruct arises from a legal transmission (like succession) under Article 669 — but critically, if the dismemberment results from a deliberate choice (e.g. a later private agreement rather than inheritance), the usufructuary alone bears the full IFI value with no abatement. The younger brother should check with a notaire exactly how the split was created (succession vs. convention) to confirm who declares what. He should request a written attestation from the notaire clarifying the legal basis of the dismemberment before his next IFI declaration. If in doubt, a paid consultation with a specialist lawyer is worthwhile given the sums involved.

Application pratique:

This ruling makes clear that Article 885 G exists precisely to prevent such engineered dismemberments from artificially lowering IFI assessments: any abatement 'invented' to reflect a voluntary split of ownership is disallowed, meaning the usufructuary (the seller, until death) must declare the property at full value, and the investor cannot use the demographic discount to shrink his own taxable base either. Before finalising the purchase, the investor should get written confirmation from a notaire on how the asset will be treated for IFI purposes to avoid an unpleasant tax reassessment. He should also budget for the fact that this structure offers no wealth-tax advantage, only potential long-term capital gains or rental benefits after the usufruct ends. A consultation with Maître Zakine or an equivalent property lawyer before signing the compromis de vente is strongly advised.