The end of the year is the last opportunity for taxpayers if they seek to reduce the tax bill of the next income campaign. With the accounts almost defined, the last adjustments can be made to pay less to the Treasury, by maximizing the deduction limits, they recall from the union of technicians of the Ministry of Finance (Gestha).
In its current approach, tax savings via contributions to pension plans and deductions for habitual residence, donations to NGOs and for investment in newly created companies mean that “the greatest tax advantages are concentrated in taxpayers with higher salaries and assets” , has warned in a note. “For those with less income, the possibilities of deducting are almost non-existent in practice,” she says. In any case, by focusing on the residence there are three operations that allow everyone to benefit.
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The first piece of advice to reduce the blow to the Treasury with housing is to improve energy efficiency. “The high electricity and gas bill, aggravated since the invasion of Ukraine, makes it interesting to explore works in the house that allow lower energy bills,” says Gestha.
“To benefit in 2022, we remind you that the energy efficiency certificate after the completion of the works must be issued before December 31 of this year.” In other words, if you are undergoing works you have to hurry to finish them or hurry to get the certificate if they have finished to get the document that reflects the improvement. There are three major deductions for this type of works.
Deductions for work on the home
Improvement works to reduce the demand for heating and cooling: works carried out since October 6, 2021 that reduce the demand for heating and cooling by 7%, such as putting double-glazed windows or changing the boiler for a biomass one, enter. The maximum deduction base is 5,000 euros and the percentage of 20%.
Improvement works that reduce the consumption of non-renewable primary energy: Works carried out since October 6, 2021 enter and cause a 30% reduction in the consumption of non-renewable primary energy or an improvement in the energy rating of the home to obtain an A or B energy class. As examples, install panels insulating walls, thermal insulation in false ceilings, installing aerothermal systems… The maximum deduction base is 7,500 euros and a percentage of 40%.
Energy rehabilitation works of residential buildings: Applies to works from October 6, 2021 that improve the energy efficiency of the building in which the residence is located. The maximum deduction base is 5,000 euros and a percentage of 60%. The excess up to 15,000 euros can be deducted in the following four years.
Loan
Limit the payment of mortgage installments
Those who bought their habitual residence before January 1, 2013 and cover mortgage installments can enjoy the deduction of payments, provided they already had deductions for that home in 2012 or before. Up to 15% of what they have paid can be deducted, with an investment limit of 9,040 euros.
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Thus, it is recommended to bring the contributions up to that limit to access the maximum deduction. If 8,000 euros of mortgage have been paid, pay another 1,040 this month to reach it. “It may be interesting to make an additional payment -of 4,947 euros on average- to partially repay the mortgage before the end of the year to reduce the tax bill by 742 euros, provided that the loan conditions do not impose commissions for early cancellations,” they warn. from Gestha.
In housing, it is time to review the regional deductions as well, which in most cases are based on age.
Operations
Neutralize the tax bill for the proceeds from the sale of the home
The last great advice is to neutralize the capital gains from the sale of the habitual residence. Whoever has sold this year, “the profits obtained will be taxed in the next rent depending on their amount, between 19% and the new rate of 26% for savings income and profits of more than 200,000 euros,” commented the Treasury technicians. To lower the bill, “if the amount is totally or partially reinvested in another habitual residence, it will be possible to neutralize this payment.”
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