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If you bought your house before 2013 we have good news for you: now you will be able to recover up to 1,356 euros on your tax return thanks to an important change in the way in which the Treasury recognizes mortgage deductions. If you used the money from the sale of your home to pay what you mortgage pendingthis change in Treasury doctrine can directly affect you. The new resolution of the Central Economic-Administrative Court (TEAC) opens the door for thousands of taxpayers to review their statements from recent years and request returns that they couldn’t ask for before. An opportunity to save on rent. The Central Economic-Administrative Court (TEAC) has dictated a change of doctrine in a resolution in which he has clarified that, if you use part of the money from the sale of your house to pay off the remaining mortgage, you can also deduct that amount on your income tax return. This changes the way the Treasury saw things until now and may mean recover more money on your taxes. Previously, you could only deduct mortgage payments while you lived in the house and owned it. If you sold the home, you lost the deduction from the day of the sale, even if you used part of the money to pay off the mortgage. An example to understand it easily. The TEAC resolution has been based on the binding consultation of a taxpayer from Santa Cruz de Tenerife, so his case can serve as a practical example. This taxpayer sold his home in June 2018 and used 10,202 euros of the amount obtained from the sale to pay off the mortgage. At that time, the Treasury only allowed him to deduct the installments paid until May, the month before the sale of the home, because the cancellation payment for the same, although it is part of the investment in that home, was no longer counted because it was no longer his property. With the new TEAC criteria, this cancellation with the money from the sale can also be deducted and therefore the excess withholding in personal income tax that was not previously recognized can be recovered. This represents a real change for those who have sold their house and paid off their debt with the money from the sale, since their right to the deduction does not disappear the day they sell the house, but remains in force as long as they use that money to pay the cancellation of their mortgage. Conditions to access the deduction. As and as they remember in IberleyIn order to benefit from this deduction, a series of conditions must be met. The first condition is that the home had to be your habitual residence until the moment of selling it. The second condition is to have purchased that home before 2013 and to have applied the personal income tax deduction prior to its sale. The maximum base for calculating the deduction is 9,040 euros per year, and the Treasury allows you to deduct 15% of what you pay for the loan. That leaves a maximum deduction of 1,356 euros per year which, if you had not applied it after the sale of the home, you can now claim if applicable. Review of declarations from 2021. From Idealistic stand out that, although this deduction is only for those who bought before 2013, those taxpayers who have sold their home and canceled the mortgage since 2021 can review their returns to see if the personal income tax deduction was correctly applied, including that final cancellation amount. This means that there may be pending returns for those who did not claim it at the time and meet the requirements in the years between 2021 and 2024, as long as their term has not expired. In Xataka | Just in case Madrid had few problems with housing, now it adds one more: US millionaires investing in the city Image | Wikimedia Commons (Jordiferrer, Ruth Leong)