French General Tax Code
In forceI. - Where the lease price consists, in whole or in part, of the delivery of real estate or securities under the conditions provided for in the first paragraph of Article L 251-5 of the Construction and Housing Code, the lessor may request that the income represented by the value of these properties calculated on the basis of the cost price be apportioned over the year or financial year during which the said properties were allocated to him and the following fourteen years or financial years.
In the event of a transfer of the assets, the part of the income referred to in the first paragraph that has not yet been taxed is attached to the income for the year or financial year of the transfer. The transferor may, however, request the benefit of the provisions of I of article 163-0 A.
The same applies in the event of the taxpayer's death. However, each of his heirs may request that the part of the income not yet taxed corresponding to his hereditary rights be taxed in his name and distributed over each of the years included in the fraction of the fifteen-year period remaining at the date of death.
II. - The provisions of I also apply to buildings that revert to the lessor without compensation on expiry of the lease.
However, the surrender of these buildings does not give rise to any taxation when the term of the lease is at least equal to thirty years. If the term of the lease is less than thirty years, taxation is due on a value reduced according to the term of the lease under conditions set by decree.
