News - Change of tax relief for mortgage. Finance Minister made ...

Finance Minister Miroslav Kalousek made it clear that he wants to disturb the tax relief. Deduction of interest on loans for housing is one of them. Work but probably its complete abolition, but will be significantly reduced the limit for the application of the interest on the loan on housing from the tax base. While not yet a household may be deducted up to 300.000,- CZK per year paid on interest from mortgages, the Government wants to reduce the level to 80.000,-CZK. We talk about "more generous" sum 100.000,- CZK

Rough estimate is clear: If there is a limit of 100 000,- CZK, at 5% interest rate with the amount of the mortgage may be applied over 2.000.000,- CZK - in the case when they are paid on the loan principal and interest is not regulary paying. But this is not the usual case. Touching the proposal loans, bridging loans of building savings and mortgage loans, combined with savings life insurance or mutual funds.

The resulting amount will affect the annuity repayment and a lot of time over which the loan is repaid. Both of course in favour of the loan amount, from which the client can apply the interest. Already, for example, the longer the loan, the higher the amount of interest you can fully deduct from the tax base. Of course, also plays its role as the loan maturity-what is longer, the more it is closer to the nature of the mortgage without repayment of the principal (principal is repaid more slowly).