There is a lot to consider when buying or selling a house. Even when it comes to tax matters. Have you bought or sold a home? Or have you taken out, increased or refinanced a mortgage? With the checklist own home you can quickly see what the consequences are for your taxes.
1. One-off deductions
If you bought a house last year or changed your mortgage for a renovation, for example, you can deduct the one-off costs you incurred for the financing. Such as the advice and brokerage costs for the mortgage advisor, notary costs for the mortgage deed and the financing costs for a construction deposit. There are also one-off costs that are not deductible, for example the transfer tax.
2. Mortgage Interest Deduction
In addition to costs that you can deduct once, the interest you pay on the mortgage is annually deductible from your taxable income under certain conditions. The most important condition is that the amount you borrow is used for the purchase or renovation of your owner-occupied home. And you have to pay off the mortgage within thirty years, paying off a certain amount each year. The deduction of the mortgage interest ensures that you pay less income tax.
But please note: did you sell a home with equity and did you buy a new home in 2021? And did you not use the equity for the new home, but took out a loan for that amount? Then you cannot deduct the interest on that loan.
3. Transfer fees
For transferring your mortgage with the same or another lender, you pay transfer costs. Think of appraisal costs, notary costs or costs for the National Mortgage Guarantee. This transfer costs are deductible in the tax return. In addition to refinancing costs, you often have to pay penalty interest when refinancing your mortgage. You pay this penalty interest when you switch to another lender and when you transfer with your current lender. The penalty interest is usually deductible in the tax return.
When you pay the penalty interest in one go, you deduct the penalty interest in one go in the tax return for the year in which you paid the penalty interest. If you pay the penalty interest in installments during the remaining term of the mortgage, you can deduct the interest annually in your tax return.
4. Renovation loan
The costs of renovating, maintaining and making your owner-occupied home more sustainable are not deductible in the tax return. If you have borrowed money for renovation or maintenance, the interest on the loan is usually deductible if the loan is used for things that are inextricably linked to the house. Think of replacing the windows, removing asbestos, maintenance painting or renovation of the kitchen. Energy-saving matters such as cavity wall and floor insulation or a heat pump are also included.
Check and complete declaration
Much of the information in the declaration is pre-filled. Think of data about income and bank details. It is important to check the entered data carefully, especially if something changed for you in 2021. For the owner-occupied home component, it is smart to read the explanation of the questions in the tax return carefully.
Box 3
Do you have income from savings and investments in box 3? The Supreme Court’s ruling on capital gains tax affects your tax return. Therefore, before you file a tax return, look for more information tax authorities.nl/box3†
Knowing more?
on www.belastingdienst.nl/koopwoning you will find more information and a handy, personal checklist†
Can’t quite figure it out? A little extra help is never far away. View on tax.nl/hulp which help is best for you. Or ask your question on Facebook, Twitter or Instagram.