After the “fiscal package” adopted this summer, which included a whole series of measures in favor of individuals, the 2008 finance law was finally adopted. It contains important provisions such as the modification of the taxation of capital gains or the deductibility of loan interest , the flagship measure of this tax package.
What are the foundations of this new tax measure?
This measure is intended for all borrowers in the context of the purchase of a principal residence in the new or the old whose authentic instrument was signed as of May 6, 2007.
What tax benefit?
The amount of the tax deduction for interest paid for the first year of repayment is doubled in the first year of the loan: 40% of the loan interest will be deductible from taxable income and 20% the following four years. The date from which the first five installments are deducted is the date on which the borrowed funds are made available for the first time.
This advantage concerns all borrowers, whether or not they are taxable on income.
The amount of this deduction will result in a tax credit capped for the first year at $ 1,500 for a single person, at $ 3,000 for a married or PACS couple, and $ 200 per dependent. In subsequent years, the tax credit will be capped at $ 750 for a single person, $ 1,500 for a married or PACS couple, and $ 100 per dependent.
How long does this tax benefit last?
The duration of this system will be spread over 5 years from the date of borrowing.
What becomes of the zero rate loan?
The zero rate loan (PTZ) whose objective is to facilitate the first home ownership, will not be questioned. Thus, first-time buyers can accumulate the PTZ and the deductibility of interest from other mortgage loans.