It is common to seek information on expenses that can be deducted, to pay as little as possible in terms of personal income tax. So if you have pre-granted financial products such as a loan, you will be interested to know if interest can be deducted. That is why today we will analyze which loans are deducted in the Income Statement.
Loans that deduct in the income statement
First of all you should know that deducting the expenses of a loan is not usually possible in the vast majority of cases. The reason? It is a financial product that does not imply an income for income or capital increases, so there is no obligation to declare it.
However, there are exceptions. That is, you could deduct the commission expenses and interest from the loan in the Rent if that money is used in one of the purposes reflected in the legislative framework. They are the following:
- Deduction of the loan dedicated to a mortgage for habitual housing (not deductible if acquired after January 1, 2013).
- Deduction of the loan dedicated to improvements in real estate capital (for repairs to the usual residence).
So, in general terms, these are some of the loans that are deducted in the income statement:
- Mortgage loan
- Any type of loan aimed at improving usual housing (example: renovations).
In these cases, the maximum deductible amount for all investments in acquisition, rehabilitation, construction or extension of habitual residence is 9,040 euros. To do this, boxes 501 and 502 must be filled in with the amounts to be deducted.
So you can see, you can only deduct the loans associated with your usual home. Everything that has to do with the payment of the mortgage or expenses derived from the improvement of the property of habitual residence, since for example the second residences of the not deduct.
However, in order not to surprise you, count on the fact that most of the expenses derived from the interests of a loan are not deductible in the Rent.
Also keep in mind that current regulations are constantly updated, so it is important that you are always up to date and that if in doubt you approach a tax agency.
And if of course you get paid, remember that you have several options. You can split the payment of the income statement or request a credit so you can face the payment without involving a mismatch in the accounts of the month. You can consider the two alternatives whenever you need it.
Is it worthwhile to apply for a loan even if it cannot be deducted?
Normally, the loan is requested to get out of a bad economic bump or deal with any unforeseen. It is a way to finance such purchase, so that it becomes more bearable and not have to disburse all the money at once. So it is also a great option to consider even if you can not deduct the income statement.
So if you are considering the possibility of requesting one, remember that on our website you can request the amount and the term you want, and you will see the offers that we can get with the entities connected to the marketplace.
Everything quickly and clearly
Without surprises. So you can get an idea of the financial product that you can access.
We hope we have clarified any doubt about whether the loans can be deducted in the income statement. Take the opportunity to download our app to save and see how it becomes more bearable. You can!