Are you between 18 and 35 years old, and are you planning to buy a house? Because of the changes regarding the transfer tax, you will receive an exemption from transfer tax as of 2021. Now, this is 2% of the purchase price. Make sure you meet the conditions. Do you meet these conditions? Then postpone the purchase until 2021!
2020 was a hectic year, we can’t deny that. Yet, we are approaching the end of the year! From a fiscal point of view, this is an important time to arrange all your fiscal affairs.
On Budget Day, the cabinet already announced their plans for 2021. These plans can have a positive or negative impact, depending entirely on your situation. In addition, some things will change over the years.
To prepare you for the new year, we made an end-of-year checklist.
This checklist gives you an overview where you can see whether you have overlooked things or want to take a closer look at something.
Keep in mind that it can take you a while to go through all the steps, so don’t wait too long!
The rate of the transfer tax will also change. Currently, there are two types: a standard rate of 6% and a reduced rate of 2%. Now, the reduced rate applies to houses regardless of their function. In 2021, this rate will go up to 8% for investment properties. So are you planning to buy an investment property? We advise you to still do this in 2021! The rate for other real estates will also rise from 6% to 8%. For this, we give the same advice!
The reason this is on the checklist is that the mortgage interest deduction is going to be limited in the coming years. To optimize your deduction options, you should consider making a prepayment on your mortgage interest. This same story applies to partner alimony. This way, you ensure that the deduction can be maximized!
Is it likely that you will just exceed the capital limit? Then, it is wise to spend some money. This way, you prevent the right to the allowance for the whole year from expiring. For example, you can spend money on something that forms a deductible item in box 1. In that case, you lower your taxable income, and you are entitled to benefits, that’s double the advantage!
Do you not meet the criteria of a fiscal partnership yet, but do you want to take advantages of the benefits? You still have until December 31, 2020, to arrange this!
If the shortage is demonstrable, you can deduct this payment your income as a supplement. If you want to deduct this in your tax return of 2020, you must deposit before December 31, 2020! The amount of this deductible depends on your annual and reservation space.
This can bring double the benefit! Firstly, the interest on the savings mortgage is often higher than on your regular saving account. And secondly, you will also save tax in box 3 if your assets are higher than the exemption.
Did you move to a new house and are you considering to rent out your old house (which is for sale)? Wait for this until the new year! The result is that your house is still in box 1 on the 1st of January, so it will not be taxed in box 3 for the rest of 2021. It makes the wait worthwhile.
Did you sell your house with surplus value and did not buy another house yet? Then, it might be smart to schedule the notarial key transfer after January 1, 2021, to save wealth tax. In this case, it is important to keep an eye on the tax-free allowance. As of 2021, the tax-free allowance will rise up to € 50,000 (single) / € 100,000 (tax partners).
Do you already own more than the tax-free allowance, or will you own more than the tax-free allowance after receiving the surplus-value? In that case, it is smart to schedule the notarial key transfer in the next year. This will save you on wealth tax.
Do you not exceed the tax-free allowance after receiving the surplus-value? In that case, postponing the notarial key transfer has no impact on the wealth tax.
We are happy to help!
Did you go through all the steps of our end-of-year checklist but still have some questions? We are happy to help you! Please contact us using the details mentioned below, and we will see what we can do for you.