Tax relief for interest on the loan, and refinance loan.

Posted: September 10th, 2013 | Author: | Money

In our country, you can get tax relief for interest on the loan provided that the loan has been targeted to acquisition or construction of housing, and so it is a home loan. Many times, however, there were doubts as to how to tax credit when they refinance such loans. / photo on flickr / photo on flickr

Recall that the refinancing occurs when you take a loan to pay off another loan. This is called a refinance or consolidation loans and often helps to reduce the cost of credit, or change to the amount of repayable by installments. Some felt that the change is the goal of the loan and thus you cannot refinance it. According to the tax authorities, it continues to be a credit to buy a home, and it became the repayment of an existing obligation.

However, a court judgment (judgment of the Administrative Court in Szczecin from 21 June 2007, I SA / W 489/06) made ​​clear that the refinancing of the loan does not change the purpose of incurring the obligation and the allowance was still due. We can safely look for a consolidation loan when we want to save or change the amount of the installment or the time in which we will repay the loan.

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