Financial advisers want to deduct mortgage interest relief | Money

A large majority of 86% of 10,000 financial advisers who are affiliated with the Association of Financial Professional Organizations (VFBO) argues for this, the professional organization announced.

Deductible item

The association advocates moving home ownership and associated debts from box 1 (income) to box 3 (assets) for tax purposes. That also means abolition of the mortgage interest deduction.

The advisers do argue for special treatment of the owner-occupied home in box 3: for example, exempt equity or introduce a separate tax credit. Because without mortgage interest deduction, the costs for homeowners rise considerably: ranging from an average of € 130 per month for starters to € 235 per month for retirees.

Te complex

“The exact tax history surrounding the owner-occupied home is often difficult to trace, especially for partners who each have their own past,” said VFBO vice president Anneke Janssen.

“That makes the scheme difficult to verify: for the customer, for the advisor and for the tax authorities. This creates tax uncertainty and certainly does not contribute to financial health for everyone. Moreover, this complexity makes advice unnecessarily complicated and therefore unnecessarily expensive. ”

Research carried out by the Ministry of Finance by Panteia and SEO also shows that the home ownership scheme would be complex, ineffective, uncontrollable and impracticable in practice.

Also listen to the financial telegraph podcast ‘Matter of Pennies’ with Martin Visser & Herman Stam. With in this episode: what do the elections mean for my wallet.

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