If you are one of the people who are paying a mortgage and have decided to file an annual tax return with the Tax Administration Service (for its acronym SAT) you should not forget to add the amount of real interest that you have paid in the monthly payments of your mortgage during the year of exercise (usually last year).
So, the answer is yes, all real interest on the mortgage will be tax-deductible. This is justified in the Income Tax Law (ISR), which in its article 151 establishes that real interest is the only part of the mortgage payment that is tax-deductible.
eye! Only interest paid during the year corresponding to the fiscal year will be deductible. That is if you will submit your statement next April 2020. In it you can only include the interest you paid during the year 2019. Previous years do not apply.
In which cases does the interest deductibility not apply to liquidity credits?
Although the deduction of mortgage credit interest is great news, not everything is pink and here come the buts. By reading this article you probably already noticed and even wondered why you talk about “real” interests. Well, this interest is obtained by subtracting inflation at the interest rate of your credit.
That is if you have a loan with an interest rate of 12% and it is expected that at the end of this year (2019) the inflation rate will be 4%. The subtraction of both (8%) will be the percentage of interest you can deduct.
However, to ensure that this deduction is effective, you must carry with you a tax voucher from the institution where you hired your mortgage that includes the amount to which the real interest you have paid during the entire period that your statement will comprise.
On the other hand, the same law establishes that you can only deduct if your credit does not exceed an amount of 750 thousand UDIs (from 4 to 5 million pesos). If this limit is exceeded, the real interest rate you can deduct will decrease its value in the same way as the excess of the total amount of the credit. That is, if your credit is 800 thousand UDIs, the excess (50 thousand UDIs) will decrease the amount of interest you can deduct.
You should also keep in mind that there is a limit on the monetary amount you can deduct
Therefore, even if you have paid a large amount of interest on your mortgage, if you have other personal deductions, it will no longer apply. If you have questions or want to know more about mortgage loans and interest deduction, we invite you to contact one of our advisors.
Everyone is trained in the subject and will help you solve any problem you have. Call now! We will guide you step by step without charging you anything!