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In general, buying your own house has a lot of impact, also on your annual income tax return. For example, it is possible to deduct certain costs from your income. But, on the other hand, you have to add a certain amount of money to your taxable income because you own a house, which is called the eigenwoningforfait (notional rental value).
We are happy to help you make the best use of these deductible items. Fill in the contact form and we will give you a call. Below we explain the benefits that are important when making the (provisional) tax return.
Notional rental value (eigenwoningforfait)
Let’s start with the notional rental value. This is a fictitious income in addition to your taxable income. On this part, you have to pay income tax. After all, the notional rental value is seen as a fictitious source of income that arises from owning a house. When you buy a house, you do not have to pay monthly rent, and it is seen as income because you build up capital.
The notional rental value is a fixed percentage of the WOZ value. The amount of the notional rental value also depends on the WOZ value. You can use the government’s WOZ value desk to see what is the WOZ value of your own house. But pay attention, you have to use the WOZ value of the year before the tax return.
Our tax specialists will not only explain exactly how this works, but also what your advantage is, and how you should report this to income tax. We are happy to help you with the tax return, please feel free to contact us.
Deductible financing costs
You had to deal with financing costs when taking out a mortgage. These financing costs are deductible once. This means that you can deduct these costs from your taxable income with the result of paying less income tax.
Examples of financing costs are the costs for an appraisal of the house, the costs for the mortgage advice and brokerage, the notary costs, the penalty interest, the costs for the National Mortgage Guarantee (NHG), and the preparation fee for extending a quote (if this applies to you). In the following video, we explain all the deductible costs when buying your own house.
Mortgage interest deduction
Just like the financing costs, the mortgage interest is also deductible. However, this only applies to loan parts that have been entered in box 1. But in contrast to the financing costs, it is possible to deduct the mortgage interest from your income each year.
Tip: request a provisional assessment with us!
After filing the annual tax return, the tax authorities determine whether you are entitled to a refund. If you have bought a house, it is helpful to reduce the monthly costs by applying for a provisional assessment. Simply put, a provisional assessment is an advance on the refund that you receive after making the regular tax return. A provisional tax assessment ensures that you receive this amount from the tax authorities per month, which ensures that your monthly costs are reduced.
Apply for a provisional assessment with The TaxSavers. If you have bought a home, you will certainly receive a refund and that can be advanced monthly.
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