Whenadministration to label a notary as a real estate speculator

In 2007, a notary purchased two buildings nearing completion, comprising 16 apartments, which he financed with a bank loan. The purpose of this transaction was to qualify for a tax deduction, and it required that the apartments in the buildings be rented out for a period of five years.

When the apartments were completed, he ultimately decided to keep them for his retirement.

He then sold two apartments in 2013 and 2015 and signed four preliminary sales agreements in 2014 and 2015.

Following a tax audit,administration that the notary had been acting as a real estate dealer and therefore issued a tax assessment for business income.

The Administrative Court of Appeals, to which the case was referred, noted, however, that the notary was experiencing cash flow difficulties due to unpaid rent. The sale of the apartments enabled the notary to meet the accelerated repayment of the loans that had been granted by the bank.

She also notes that the sales did not generate any capital gains for the notary and that, while the notary had made other real estate purchases between 2005 and 2015, only one-third of the properties had been sold.

Finally, the Court notes that the decree governing the status of notaries prohibits notaries from engaging in speculation in connection with the purchase and resale of real estate.

It therefore concluded that the notary had no speculative intent when purchasing the property and thatadministration couldadministration consider him to be acting as a real estate dealer.

The tax assessment is therefore rescinded.

CAA Bordeaux, Dec. 16, 2025, No. 23BX03236

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