Can an individual be requalified as a merchant of goods?

Yes. An individual may be taxed as a merchant of goods when his or her transactions reflect an intention to purchase and sell and are sufficiently customary or organized.

The risk is precisely that this qualification will occur even though the taxpayer was thinking of acting in the management of his private assets.

The status displayed is less important than the reality of the transactions

Frequency of purchases and resales, length of tenure, nature of work, method of financing, organisation of operations and intention pursued at the time of acquisition are all elements that can be examined.

A succession of profitable transactions, carried out according to a comparable logic, can gradually change the tax reading of activity.

The firm analyses these indices in a comprehensive way to assess the level of exposure to requalification and to identify the most sensitive points in the existing scheme.

Measuring risk before continuing the investment strategy

A requalification can profoundly alter the tax treatment of profits and the economy of future transactions.

Therefore, the firm's expertise is to intervene early enough to determine whether the current organization remains consistent with heritage management or whether the activity should be rethought in a professionally assumed logic.

This analysis compares several scenarios, anticipates their consequences and chooses a structure adapted to the economic reality of the project.

Master Edouard Pruvost specializes in advice on real estate tax strategy and analysis of activities that could be qualified as a property dealer. The firm intervenes to assess the risks of requalification, measure their impact and direct investors towards the most appropriate structures. To have your situation analysed and to benefit from tax strategy advice, contact the firm.