Seven deductible expenses for homeowners

The Income Statement for the 2021 financial year has entered its final stage. But as the campaign progresses, doubts continue to arise from those Spaniards who want to avoid errors in filing their taxes and get rid of all the income in the rent being taxed. Especially, those who are landlords of a home.

Rehabilitation of the property, household supplies or interest on the mortgage loan These are some of the deductible expenses that the owners of rental properties must take into account in their income statement, although in many cases they are overlooked due to ignorance or fear of penalties. In fact, 50% of Spaniards are afraid of making mistakes when filing their income tax return, according to data from the first Report on the Spanish Income Tax Return and Tax Policy carried out by TaxScouts, a platform online for filing taxes.

According to TaxSocut, these are the seven most relevant deductible expenses for homeowners:

1. Housing rental: Taxpayers who have rented their habitual residence must declare it, but a 60% deduction can be applied to the tax base.

Seven deductible expenses for homeowners



2. Tributes: All non-state taxes and fees that must be paid for the home and that affect the computed yields are deductible.

3. Housing repair and rehabilitation expenses: Housing repair and rehabilitation expenses are also deductible in personal income tax. For works in the main residence that reduce the demand for heating and cooling by 7%, something that can be achieved with high-performance windows, a 20% deduction is opted for, with a maximum of 5,000 euros per home.

4. Household supplies: As long as the expenses are paid by the landlord, the main household supplies, such as electricity, water and gas, are also deductible from the income tax return.

5. Mortgage loan interest: The interest paid to the financial entity of the home during the amortization of the same, as well as the financial expenses, are also deductible in the income statement.

6. Professional services and amounts earned by third parties: In the event that the lessor hires professional services from a third party to rent the property or to draft the rental agreement, these expenses are also deductible, since they contribute to generating rental income.

7. Amortization of the property: Amortization is also considered a deductible expense, provided that it corresponds to its effective depreciation. This deduction is determined by the Treasury and corresponds to 3% per year on the higher of the following values: the cost of acquisition or the cadastral value, without including the value of the land in both cases.

Other deductions for housing

From the TaxScouts online platform they also remember other possible deductions in the field of housing. For example, Spaniards who change their address after having accepted a job in a location other than their habitual residence, they can take advantage of the deduction for geographical mobility.

To do this, they must demonstrate that the change of address has occurred as a result of the change in work and, although it is not necessary for them to register in the new municipality, it is advisable to do so to avoid problems with the Treasury when justifying geographic mobility. in the income statement, as detailed by TaxScouts. The deduction for geographic mobility in income is applied to work performance in personal income tax and reaches a maximum of 2,000 euros. In the case of making a joint declaration, that money applies only to workers who meet all the requirements.

For homeowners who purchased their property before January 1, 2013, there is also the option of deducting the home insuranceas long as they own the property and an investment has also been made in the home, being able to deduct up to 15% with a maximum of 9,040 euros. The boxes in which the home insurance data must be reflected for this deduction are 547 and 548.

In addition, those Spaniards who are tenants can deduct the rent of their homes. At the national level, the current transitory period allows monthly payments to be deducted for those who have a contract prior to January 1, 2015, whose extensions remain in force or a new one has been signed on its bases. As a requirement, taxpayers should have already benefited from the deduction in previous income campaigns.

The maximum base of the deduction is 9,040 euros per year if the tax base is equal to or less than 17,707.20 euros and the amount of the deduction is 10.05%. In addition, in many autonomous communities there are rental deductions for contracts after 2015, with some requirements, such as age or maximum income.

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