The usufructuary may deduct from his income the share of the deficit corresponding to his rights in a partnership
The Conseil d'Etat has just ruled that in a partnership holding an immovable, which has not opted for
corporation tax, the usufructuary of those units may, when the result of that partnership is in the red,
deduct from its income the share of the deficit corresponding to its rights.
It concludes that in the event of a break-up of ownership of the shares of a partnership holding a property,
which has not opted for the tax treatment of capital companies, the usufructuary of such units is subject to
the tax income on the basis of the share of property income corresponding to the rights in the results of
this company that confers its quality. When the result of this partnership is in deficit, the usufructuary
may deduct from its income the portion of the deficit corresponding to its rights (Arrêt du Conseil d’État,
du 28 septembre 2018, n° 408029).