There are many people who do not know how loans work in accounting. There are even those who have not yet found an answer to the question “are the loans deductible?”. Therefore, this article will try to answer this question.
If someone has financial products and the income declaration campaign is approaching, it is interesting to know what expenses will be deducted to pay as little as possible in the IRPF.
Are the loans deductible?
It is usually not possible to deduct the expenses of a loan since it is a financial product that does not increase capital nor is it an income for income. Therefore, there is no obligation to declare it. However, there are some exceptions in which it will be possible to deduct both interest and commission costs. In case that money is used for a purpose included in the legislative framework as the following:
A loan dedicated to improving real estate capital, such as regular home repairs.
A loan contracted for the acquisition of a habitual home in the form of a mortgage. (Although not deductible if purchased after January 1, 2013).
In general terms, mortgage loans or any loan to make reforms may be deducted in the income tax return. The maximum amount to be deducted is 9040 dollars and it will be necessary to fill in boxes 502 and 501 with the amounts to be deducted.
Therefore, as can be seen, it will only be possible to deduct a loan associated with a habitual residence. Always taking into account the above circumstances and knowing that for a second residence it is not possible to deduct any amount.
If you do not want to have surprises, it is necessary to take into account that the interests of personal loans are not deductible in the income statement. However, it is advisable to review the legislation in force at the time it is needed. Since it is updated with relative frequency. In case of doubt, it is best to go to a legal advisor or an office of the Tax Agency.
If at the time of making the declaration goes out to pay, you can always choose several options:
Split the payment into several installments.
Request a loan to be able to pay the payment without the accounts of that month being unpaid.
So are the loan deductible? To answer this question, it must be taken into account that personal loans will not be deducted. In case of applying for a mortgage loan, a series of requirements must be met; among them that the house is the usual and not a second or third residence. Are you looking for financing? In Good Credit Loans, you can compare the best offers of financing online.