How are loans taxed on income?
Many of the terms in the tax area generate confusion, especially its regulations: what does it deduct in taxes and what does it not? There are so many elements to take into account that it is normal for this to happen. One of the most confusing ones is: how do you loans are taxed on income?
As in Prestalo we know this, we want to clarify this specific issue and try to clarify the doubts that are generated in an issue that could be confusing for some.
How are income loans between individuals taxed?
When we talk about loans between individuals there are two subjects, the borrower who is the one who receives the loan and the lender which is the one who gives it.
By clarifying this situation, we can establish that the borrower does not have to declare the loan, since it has no effect within the tax system. If you wonder why, it is very simple.
If I ask for a loan, should I declare it?
When a person receives a loan Your capital does not increase, since you must return it when the previously agreed term is met. It is only money that is received in advance and the farm does not consider it as personal income.
However, this is excepted when you are self-employed and the loan has been requested in connection with the commercial activity that is carried out. In this case, a percentage of the interest that has been paid could be deducted.
In the case of the lender it is different, this If you must declare and also have to pay the corresponding taxes.
What loans affect income?
It is a fact that most loans have no influence on the income statement. There are only two exceptions to this and they are linked to mortgage loans and those that are intended to reform a home, but with some preconditions.
It should be noted that this does not work for today’s home loans, only those that were signed before 2013. This is because the regulations corresponding to this changed and only affects mortgage loans that were signed before.
An exception to this is that in the Basque Country it is still possible, although it is signed today.
What happens if I am within the deadline?
In the event that you have signed a mortgage loan before 2013, you can chooseto subtract 15% of what you paid for your home in a year. This up to the limit of 9,040 euros, as stipulated by the regulations.
In the case of reforms they have the same luck, if you started the same before 2013 and you also started paying them before that year, you can choose a deduction. Added to this, the reforms should have been completed at most in January 2017.
Although it is difficult to enter within the deadlines taken into account, it is important to keep in mind how loans are taxed on income, because if you did not know this and you ignored this deduction, you are still in time to choose it.
If you are still not sure how loans are taxed on income o situ mortgage loan allows you a deduction remember that in Prestalo: we offer online advice… to help you!
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