Good Evening Emile
Here’s my offering .
The usufructuary has the right
to receive income from the asset held under the usufruct.
(Note that he does not have
the right to dispose of the asset itself).
Any non capital expenditure actually
incurred by the usufructuary in order to produce that income ought to be
deductible from that income.
The usufructuary to include rental
income as part of his gross income.
Expenditure provided it meets
the criteria set out above ought to be deductible against rental income.
Lease agreement (written)
should reflect Usufructuary as lessor.
Recommend that a separate bank
account be opened in usufructuary’s name for rental receipts and expenditure
Interest incurred in respect
of bare dominium holder‘s bond would in my view not be deductible from
usufructuary’s rental income.
It is advisable to approach a
tax consultant whom you should apprise of all the facts in order to give
you a proper opinion.