With less than two months to finish the year, the countdown begins for those who want to soften the invoice of the Income Tax 2016 thanks to housing.
With deficit targets still pending and who knows if a tax reform ahead, Spain faces a 2017 with a higher tax burden.
A year for which we will prepare and still gives us two months to balance personal finances. A few weeks in which to redress everything possible for the 2016 IRPF.
How can we take advantage of this countdown in our favor? To what extent can housing expenses be deducted?
Buying and rehab
The owners of a standard house since before 2013 can continue to enjoy their deduction on a maximum limit of 9,040 euros. With this the maximum amount to deduct remains at 1,356 euros per taxpayer.
The transmission of the habitual residence throughout 2016 supposes a patrimonial gain for the seller. In that case, the purchase of another home is advised to avoid having to pay for the sale. An operation that must be carried out in a maximum of two years, but that must be communicated to the Treasury.
Another aspect to take into account is the recent ruling for the return of the overpaid to the bank in mortgages with floor clauses. The beneficiaries of the usual housing deduction must declare it in ‘Renta 2016’.
In the same way, the aid received both for access to the first home and for the reform or rehabilitation of the usual home must be declared. A taxation that can be made in this next fiscal year, or split between Renta 2016 and the following three statements.
Tax relief for rent
Taxation in rental housing includes the figure of the lessor and the lessee.
The owner agrees to face, in advance, the maintenance costs of the house. If these surpass the rents received by the rent, part of the taxation can be deferred to the next year.
The concept of renting is another matter to keep in mind. It is more beneficial to lease the property to a natural person and as a dwelling. To market it as a professional office, the headquarters of a tourism company or housing makes it impossible to deduct 60% of the profit obtained.
Any tenant who signed the lease before 2015 may continue to deduct the rent, as a regular home.
If you do not change your home and renew the rental agreement with the homeowner, even if the monthly rent and the term of the agreement vary, the deduction may continue to apply.
Personal Circumstances in the Income Tax 2016
If we look for an age, the fiscal barrier of the equity gains would be in the 65 years.
Once that age is reached, the sale of a regular home is exempt in taxation for the surplus value obtained. Circumstance that affects both members of a couple if it is a property of profit.
The operation can be used for the constitution of an annuity within a period of six months for a maximum of 240,000 euros. Another way of avoiding the payment of the equity gain, especially interesting once the 70 years have passed.
Another interesting case is that of marriages under the property regime and the communities of goods or co-ownership. Given their separation or dissolution, it is appropriate to distribute equally to avoid that nobody should tax for a greater equity.
If the habitual residence serves to carry out an economic activity. As it happens to many self-employed, part of the expenses can be recovered. Entrepreneurs can deduct 20% of supplies (light and water) in addition to other common expenses related to the property (community of owners and some taxes).
Deductions for housing and heritage added to others that we will live.
