This standard is applicable to the loan interest expenses incurred by the taxpayer or his/her spouse alone or * * * together with the personal housing loan or housing accumulation fund of a commercial bank to purchase the first home in China. The first home loan refers to the mortgage that enjoys the interest rate of the first home loan. If the husband and wife buy houses separately before marriage and have the first set of housing loans, they can choose a house after marriage, which will be deducted by the buyer according to the deduction standard of 100%, or the houses purchased separately by the husband and wife will be deducted according to the deduction standard of 50%.
Conditions for personal income tax on mortgage interest:
1. First home loan interest: Only houses with the first home loan interest rate can apply for tax deduction. Provident fund loans or commercial loans can be used. As long as it is the first home loan, you can enjoy the special tax deduction for mortgage interest.
2. Domestic mortgage interest: both the purchased property and the generated mortgage interest need to be in China. For most people, this is usually not a problem because most people buy real estate in China.
Within 3.20 years: the mortgage interest tax deduction has a time limit, generally not exceeding 20 years. Exceeding the limit will lead to failure. But for most people, this condition is not difficult to achieve.
4. Submit an application: Before applying for mortgage interest deduction, you need to submit an application in accordance with the regulations and pass the system audit. Customers need to prepare the required information to avoid problems in tax refund.
To sum up, the personal income tax deduction standard for mortgage interest is 1 000 yuan per month, which is applicable to taxpayers who buy the first home in China and can be used as a special additional deduction to reduce taxable income.
Legal basis:
Interim Measures for Special Additional Deduction of Individual Income Tax
Article 14
If taxpayers or their spouses use individual housing loans from commercial banks or housing accumulation funds alone or jointly to purchase housing for themselves or their spouses in China, the interest expenses incurred in the first housing loan shall be deducted according to the standard quota of 1 000 yuan per month in the year when the loan interest actually occurred, and the maximum deduction period shall not exceed 240 months. Taxpayers can only enjoy a first home loan interest deduction.
Article 15
As agreed by both husband and wife, one of them can choose to deduct, and the specific deduction method cannot be changed within a tax year. For the first set of housing loans that occur when the husband and wife buy houses separately before marriage, they can choose to buy 1 house after marriage, and the buyer will deduct it according to the deduction standard of 100%, or the husband and wife will deduct it according to the deduction standard of 50%, and the specific deduction method cannot be changed within one tax year.