Property tax : Who is eligible for a tax deduction on real estate, and how?
Among the measures announced by headlights Nicolas Sarkozy during his campaign, was the announcement of a tax deduction on real estate. This was to enable households investing in the purchase of new property, which is to become his main residence, to deduct from their taxes a portion of the interest in mortgage lending contracted for this purpose. However, the extent of tax deduction on the property was to add some restriction at the time of its ratification.
Thus, the tax deduction on real estate is effective only when the keys to the house. This condition is rather for the benefit of borrowers, as mortgages for the purchase of nine themselves generally progressive increments. By taking into account the interests of the Loan at the time of handing over the key, the calculation of the tax deduction on real estate is at a time when interest is highest.
In contrast, among restrictions for the deduction of taxes on real estate, some are less advantageous for couples investors. Indeed, it was expected that the maximum amount of the tax deduction would be capped at 750 euros per year. In addition, the tax deduction on real estate deals only with the first five years of repayment, which means that loans contracted before 2002 would be excluded from the measure. Finally, the tax deduction on the property does not take into account existing disparities in house prices by region, which significantly disadvantage potential buyers of real estate in the Paris region, and in a general way, in all major cities.
