Those who purchased their primary home before 2013 can now reclaim a portion of the personal income tax paid, even if they have already sold the home. Until now, the Treasury Department has prevented the application of the housing investment deduction to those who used sales money to make payments … Mortgage, on the grounds that the property is no longer your usual residence. However, the recent decision of the Central Economic Administrative Court (TEAC) has changed this standard and opened the door to new returns.
Who can claim?
The change affects all taxpayers who purchased their homes Before January 1, 2013 And who at that time had already benefited from the habitual residence investment deduction. This is an important nuance, as only those who implemented it before it was suppressed can continue to use it under the transitional regime. In addition, the decision clarifies that if the funds obtained from the sale are used to amortize the mortgage, this amount can also be counted for the deduction.
How much can you claim?
The deduction for investment in housing allowed a deduction of 15% of the amounts allocated for the purchase or consumption of the primary residence, up to a maximum of 9,040 euros annually. In practical terms, this means a return of €1,356 per year. Taxpayers may request a refund for the offsetting years, i.e. the last four years, as long as they prove that the payment was made with funds from the sale of the property.
How to claim?
To start the process, you must collect all the necessary documents: purchase and sale deeds, mortgage cancellation certificate and bank receipts proving that the sale funds were used to repay the loan. With these documents, an application to correct the personal income tax self-assessment must be submitted through the electronic headquarters of the Tax Agency. It is desirable in the document to explicitly refer to the TEAC decision protecting the new standard.
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