Publication date: 04.06.2024
Lawyer
How to get a tax discount on a mortgage loan?
A mortgage loan is an important step on the way to owning your own home. But few people know that the state provides an opportunity to get a tax discount for using a mortgage loan. Let's consider exactly how this right can be used and why it is important to contact professional lawyers for legal support.
What is a mortgage tax credit?
A tax discount on a mortgage loan is a state tax benefit that allows citizens who have taken out a mortgage loan to purchase a home to partially offset the costs of paying interest on this loan by reducing the amount of personal income tax (PIT).
Learn more about the mortgage tax deduction:
Only resident natural persons who have taken out a mortgage loan from a bank for the purchase of an apartment, house or part thereof have the right to a discount.
The discount is calculated as a certain percentage (usually 13-20%) of the amount of interest actually paid on the mortgage during the calendar year.
The maximum amount of the discount is limited to a certain amount (for example, the equivalent of UAH 30-50 thousand) per year.
To receive a discount, you need to submit an annual tax return and a set of documents confirming the payment of interest (credit agreement, bank statement).
The amount of the discount actually reduces the amount of personal income tax that must be paid for the year. If there is no need to pay personal income tax, the discount does not apply.
The discount can be received every year for the entire term of the mortgage.
Those who have already received mortgage interest compensation from the budget cannot apply for a tax discount.
A tax discount on a mortgage is an element of state support for citizens when purchasing housing on credit.
Who is entitled to a tax deduction?
The right to receive a tax discount is the member of the spouse who is the borrower of the mortgage loan. This rule is decisive when it comes to joint property. The main administration of the State Tax Service clarified that the tax discount is granted only for the interest actually paid during the reporting year.
How is the tax discount calculated?
According to clause 175.2 of Art. 175 of the Tax Code of Ukraine, the amount of interest included in the tax discount is calculated as the product of the actually paid interest and the coefficient that takes into account the minimum area of the dwelling. Thus, the greater the amount of interest paid, the greater the tax deduction can be obtained.
Required documents to receive a tax discount
To use the right to a tax discount, you must prepare the following documents:
Mortgage loan agreement.
Certificate from the bank about the amount of interest paid.
A copy of the document confirming the ownership of the home.
Tax declaration on property and income.
It is recommended to consult a lawyer for the correct preparation and submission of documents.
Advantages of consulting a lawyer
Professional advice from a lawyer allows you to avoid mistakes when preparing documents and submitting a tax return. An online lawyer will help you understand all the intricacies of legislation and provide a legal opinion on your situation.
Why is it important to seek professional legal help in a timely manner?
Accumulation of unresolved issues can lead to serious legal consequences. Timely legal analysis of documents and legal analysis of the situation, legal opinion of a lawyer will help to avoid fines and additional costs. Consulting a lawyer allows you to quickly and efficiently resolve legal issues, avoiding the risk of mistakes. An online lawyer is always available for prompt assistance.
Conclusion
Getting a tax discount on a mortgage loan is a real opportunity to reduce the financial burden on the family budget. However, the registration process can be complicated and requires a professional approach. Therefore, we recommend contacting the lawyers and attorneys of Legal Marketplace Consultant LLC for legal support, consultation, legal opinion and other legal assistance. Let professionals handle your legal issues!
