A change of job, the arrival of a child, a promotion... There are many reasons for changing your tax bracket. In fact, whether it s a personal or professional project, voluntary or not, it s highly likely that you ll change tax bracket several times in your life.

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Tax cut :

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Taxes may be revised downwards compared with previous years. The most common reasons are:

• Involuntary cause: job loss, work accident, unemployment...
• Professional project: change of job, professional reorientation, resumption of studies...
• Personal project: starting your own business, selling real estate...

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Don t forget that when you welcome new members into your family (blended family, newborn...), the number of shares increases. For more information on calculating tax brackets: link to article.

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Tax increase:

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Conversely, certain events lead to a tax increase. Anticipating these developments can help you innovate to reduce your taxes. The most common reasons for a tax increase are :

• Professional activity: promotion, retraining, increased sales for the self-employed, etc.
• Investments: income from rental property, capital gains from the sale of movable property...

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When there is a reduction in the number of units on the tax notice (death, adult child leaving the tax household), then the tax bracket may increase.

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There are several ways to anticipate a tax change. They can be more in the investment (short, medium or long term) or in patrimonial objectives. However, it s important to bear in mind that a certain level of cash flow is required. We advise you to make an appointment with a wealth management advisor so that you don t embark on tax exemption alone.

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PER:

For a long-term investment, the pension savings plan can provide significant tax benefits. However, these savings are unlocked when you retire. On the tax side, payments made into a PER are deductible from household income, helping to offset a rise in income. There is, however, a limit: it must not exceed 10% of the previous year s net professional income and up to a maximum of €32,419.

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FIPs (Fonds d investissement de proximité) and FCIPs (Fonds communs de placement dans l immobilier)

While FCPIs favor their investments in small European-based companies with fewer than 2,000 employees and less than 10 years in business, FIPs focus on small and medium-sized French companies with fewer than 250 employees and sales of less than €50 million. These French companies make up 70% of the FIP asset portfolio. Apart from this distinction, FCPIs and FIPs offer an identical tax advantage: 25% of the sum invested can be deducted from the income tax due to the State in the year of subscription.

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