What is deductible when buying a home?
Bought a house, did you know you can deduct several expenses from your taxes? There are a lot of costs involved in buying a home. And with scarcity in today's market, you quickly encounter unpleasant overbids. But there are ways to cut costs. That way you pay less on peripheral items and keep more money to buy your home, or furnish it. One way to save money is to deduct expenses from taxes. This refers to the cost of the purchase, not the cost of the house itself.
What portion of the buyer's fee is deductible?
Cost of buyer. This is what the costs of buying a house are called. These costs include all the expenses you incur to buy the house. Think of notary fees or transfer tax. Part of these purchase costs you can claim as a deduction on your income tax return for the year in which you buy your house. So if you buy a house as a starter [link] in 2023, you'll report the deductible expenses on your 2023 income tax return that you file before May 1, 2024. Several costs may be deducted, below you will find a list of all the costs listed:
The following expenses are deductible:
- Notary fees for the mortgage deed
- The mortgage advisor's advisory and mediation fees
- Land registry fees for the mortgage deed
- Valuation fees for getting the loan
- Costs for applying for the National Mortgage Guarantee
In addition, if you are the first occupant of a newly built home, the following expenses are deductible:
- Construction deposit fees
- Construction interest you paid after signing the preliminary sales contract, but before signing the mortgage deed
Mortgage interest deduction
Mortgage interest is also (partially) deductible. Part of the interest you pay for your mortgage, you can get back from the tax authorities. This is called mortgage interest deduction. When you take out a mortgage for a home, you pay interest on your mortgage every month. Part of that interest, under certain conditions, you may deduct from the income you pay taxes on. These conditions are strict, as you only qualify with an annuity mortgage or a linear mortgage. Do you have an interest-only mortgage? Then, unfortunately, this does not apply to you.
