Best Tips for the Declaration
Now it is almost time to declare. Here are the deductions to keep an eye on when it comes to loans, travel and renovations.
Interest deduction on loans
As a private individual, you have the opportunity to receive a tax reduction on your loans, a so-called interest deduction. In order to receive interest deductions, you must have a capital deficit, that is, your interest expenses must have been higher than the income from capital. Capital gains include share dividends, interest expenses and profit from the sale of private assets. In addition, it is required that you are responsible for paying the loan and that you have paid interest and tax on the loan during the year in question.
Except for student loans, the interest deduction applies to most types of loans. The tax agency automatically receives information from lenders about how much interest you have paid and the information is therefore already filled in on your return. Keep in mind that for some loans you may have to fill in the information yourself.
If you have moved a fixed loan from one bank to another before the end of the fixed period, you may have paid an interest difference compensation to the bank. In that case, you are entitled to deduct the cost as an interest expense.
Travel to and from work
You can make a travel deduction if you have traveled to and from your work for a cost that exceeds. To be entitled to the deduction, there must be at least two kilometers between your home and workplace if you have taken public transport and at least five kilometers if you have driven a car. When driving, you must also have made a time gain of two hours per day, compared to taking public transport.
If you have driven to work during the pandemic to avoid public transport, you cannot make an additional deduction. You also cannot deduct any costs you have incurred due to working from home, such as office furniture and broadband.
Renovation of the home
If you have sold your home, you can make deductions for various types of renovations. You can get a deduction for the entire expense if, for example, you have made an extension or changed the floor plan. If you have exchanged something for an equivalent product, such as wallpaper or white goods, you can get a deduction for parts of the expense.