Having a housing credit may be a big monthly expense, but did you know that some of these expenses can be deducted from IRS? Find out how to optimize your statement and pay less tax by taking advantage of tax benefits to the fullest.
Who can deduce expenses of Housing credit?
Not all housing credit holders can benefit from IRS deductions. Only contracts signed until December 31, 2011 allow the deduction of interest. For these taxpayers, it is possible to deduce up to 15% of the interest paid, with a maximum limit of 296 euros.
If your credit was hired after this date, unfortunately this deduction does not apply. However, there are other housing -related expenses that can also be considered in the IRS.
What housing expenses are deductible?
Even if it cannot deduct interest on housing credit, it may benefit from other deductions. The main ones are:
- Lace – If you are a tenant and have a contract registered on the Finance Portal, you can deduce 15% of the amount paid, up to a limit of 502 euros.
- Property Rehabilitation Charges -Applies to expenditure on real estate renewal framed in the urban rehabilitation program.
- General Expenses with Housing -As long as they are properly recorded in e-start.
If you want to save, you must ensure that all your expenses are correctly classified and declared.
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How to declare correctly in IRS?
To ensure that you enjoy the available deductions, according to the, you must follow some essential steps:
- Check e-start – Confirm that all expenses are correctly registered on the Finance Portal.
- Fill in Annex H – For interest on housing and other expenses, use this annex in the IRS statement.
- Legal – Some deductions have maximum values established by the Tax Authority.
- Deliver the declaration within the deadline – Avoid late penalties and make sure your statement is correct.
If you leased a property, you must also fill in Annex F to declare the income obtained with the lease and deduct associated expenses such as IMI, condominium or works.
Did you transfer credit to another bank? Know what changes
If you have transferred your housing credit to another banking institution, it loses the right to deduct interest in the IRS. The tax authority considers that the transfer is equivalent to the conclusion of a new contract, making it ineligible for deduction, even if the original contract was from before 2012.
Another important issue is that automatic IRS may not automatically include housing credit deductions. Always confirm whether interest rates appear correctly in Annex H and, if necessary, make the correction manually.
What to do if the values are wrong?
If you notice that the values of housing expenses are incorrect or absent in automatic IRS, follow these tips:
- Correct manually – Opt for manual statement and enter the correct values.
- Review the E-start -Make sure your expenses are duly registered before the deadline.
- Contact the Bank – Ask the bank to correct information communicated to the tax authorities if necessary.
Preparation of your IRS statement is essential to ensure that you do not lose money and enjoy the available tax benefits. Always check the information, correct any errors and maximize your deductions to pay less tax.
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