People who bought their primary home before 2013 can now get back some of the personal income tax they paid, even if they have already sold the home. Until now, the Ministry of Finance has blocked the application of the home investment deduction to people who used the proceeds from the sale to repay their loans. … He claimed that the mortgage was no longer his habitual residence. However, a recent resolution by the Central Economic and Administrative Court (TEAC) has changed that standard and opened the door to new benefits.
Who can claim?
This change affects all taxpayers who purchased a home. Before January 1, 2013 and those who were already benefiting from the habitual residence investment deduction at the time. This is an important nuance, and only those who applied it before the suppression will be able to continue using it under the transition regime. Additionally, the resolution clarifies that if the money from the sale is used to pay off the mortgage, that amount may also be deductible.
How much can I charge?
The housing investment deduction allowed a deduction of 15% of the amount allocated to the purchase or depreciation of a principal residence, up to a maximum of €9,040 per year. In practice, this means a profit of up to 1,356 euros per year. Taxpayers can claim refunds for non-standard years, i.e., the last four years, as long as they can prove that the payments were made with funds from the sale of real estate.
How can I make a claim?
To begin this process, you will need to gather all the necessary documents. This could be a bill of sale, a mortgage cancellation certificate, or a bank receipt proving that the money from the sale was used to repay the loan. You must use these documents to request a correction of your personal income tax return through the National Tax Agency Electronic Headquarters. We encourage you to explicitly cite the TEAC resolution protecting the new standard in this document.
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