Written by Consuelo R from Prada

Inheriting a home in Madrid will be cheaper

Sometimes the taxes that are paid to inherit are so high that some would prefer to give up the inheritance for the disbursement that it can suppose. Although everything depends on each Autonomous Community, in the case of Madrid, the conditions are better, since the Inheritance Tax is exempt in an 99%, when it comes to direct heirs.

Right nowL City Hall of the Capital it adds up and will lower from the July 1 up to an 90% the Tax on the Increase in the Value of Urban Land (IVTNU), known as Municipal capital gain. In addition, it eliminates the requirements to benefit from the bonus, such as coexistence in the habitual residence of the deceased and that the beneficiary remained registered in it the five years thereafter.

This payment, significant for many pockets, will be a significant saving for direct heirs. An example, for a dwelling of about 90.000 euros of cadastral value, the fee to be paid will be about 470 euros against the previous 4.698 euros.

These news from the City Council join those promoted by the Community of Madrid that the 1 of January of this year lowered to the 6% (compared to the 7% previous) the Tax of Patrimonial Transmissions (ITP), tax on the second transmissions, qWe already have in another post. And another tax that was reduced is that of ADocumented Legal Documents (AJD), what happened From 1% to 0.75%. This taxes the purchase of new homes, which carry VAT, and deeds of mortgage in general.

Although a good part of these concessions have a marked electoral character, welcome are due to the savings they suppose.

Written by Consuelo R from Prada

The expenses that you can deduct if you have a rented flat

A few weeks ago we talked about the Home deduction in the income statement and today it's the turn of the rented accommodation In the income statement. There are no significant changes, but it is good to remember what can be included.

Un rented flat It's like a small businessWith its ingresos and its spending. In the income we must have the rent paid by the tenant and that must be declared. But, obviously as it has expenses, they can also be taxed.
Regarding the income, of the total net return for housing rental, the 60% is exempt and that amount Can reach the 100%, If the tenant has between 18 and 30 years and net income greater than 7.455 euros, minimum wage (IPREM) for exercise 2013. Anyway, as each case is a world, in This link you can see all the assumptions In chapter 4 on real estate capital yields.

And in the spending, They can include:

  • The current expenses". That is, the community, the IBI, housing insurance and maintenance paid by the owner, as would be any repair or conservation expenses, in general.
  • The Amortizations of the investment: the Amortization of the building, Which will be the 3% per year Of the value of the construction (which is not the value of the floor, which includes the floor). The greater of these values ​​can be used: cost of acquisition or cadastral value, but always Excluding the value of the soil. The Amortization of content Or household goods, furniture, appliances, etc. From the value of these assets, if the usual depreciation criterion is applied, the annual 10% of the value of the assets acquired each year will be accounted as an expense, taking as an expense one tenth of its value for ten years. That is, the year of its purchase and the following nine years.
  • It can also be deduced, lInterest on the mortgage loan, The balances of doubtful collection (Which must previously have been accounted for as income) and The amounts for services received, How to formalize the lease.

In the end and in many cases, Between reductions and deductible expenses Fiscal pressure can be zero.

Written by Consuelo R from Prada

It's time to buy a house on the beach

Summer is approaching and housing on the beach may be a good option for summer holidays. And now it's the Time to look for it, Taking advantage of the Holy Week.

Is it a good time to buy? In these years of crisis there have been major rebates, coupled with a Abundant new offer in the market, Circumstances that allow you to have many options to choose from. And if this were not enough, financial institutions begin to open the tap financing. It is a slow process, but it brings new expectations after years of foreclosure.

Prices have fallen around the 50% in many areas, and even more, but Could be reaching their final adjustment, Which indicates that in some areas Sales start to rebound. You can get longed apartments for 50.000 euros or two bedrooms for 100.000, something unthinkable just a few years. New housing for less than 100.000 euros.

Changes in the market.- And although it is slowly, Signs of trend change and the second home market On shore begins to move. If we rely on previous crises, The areas that first recovered were those of coast, Mainly due to the reactivation of international demand, something that is already happening.

The crisis has brought us here and now is the time for Seize opportunities.

Written by Consuelo R from Prada

Who can charge for regular housing?

They say that we are all Treasury and the time has come to "go through the box". From the 1 of April until the 30 of June we can already present the Personal Income Tax (IRPF), the Declaration of Income to understand us.

And this year has new, What can I charge for housing? If you bought your house from January 1 2013: nothing, As the Government eliminated this type of relief. Yes, you did it Previously You keep the Relief by habitual residence.

Purchase.-All those who bought before the December 31 from 2012 keep the Tax deduction for home purchase (15% up to a maximum of 9.040 euros per year). But this percentage is divided into two sections: state and autonomous, hence the need to check if there have been changes in the part corresponding to your community. In addition, we must remember that since the 2012 exercise has also been removed tax compensation for deduction in acquisition of usual residence applicable to taxpayers who acquired their home before January 20 2006, using outside financing.

However, there is a Transitional regime And some may be taxed for Investment in standard housing. This is the case of those taxpayers who had paid 1 January 2013 to  Rehabilitation works, extension of habitual residence or works of adaptation of habitual residence of persons with disability, Provided they are completed before January of 2017. In the latter case, the limit is 12.080 annual euros (for the previous, 9.040 euros) and the excesses can not be transferred to future years.

Living for rent. In the case that the habitual residence is of rent, the tenant can be deduct Up to 10,05% of the amounts paid as rent, provided that the taxable amount is less than 24.107,20 euros per year (the more you earn, the less deduction), plus the bonuses applied by some Autonomous Communities, which in some cases have been removed.

En this link you have access to Manual of the Tax Agency And in it you will verify what you can deduct according to your place of residence.

Next week we will tell you what you can deduce if you have one Rented housing.

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