In your opinion, is it possible to make a loan while paying less tax? This question most customers of banking institutions or almost ask themselves. In this article, we will see if it is really possible to obtain any tax exemption to be able to benefit from a deduction of loan interest or not.

How does it go if you make a student loan?

If one refers to the law concerning the CGI in its article 200 terdeci and the BOI 5 B-20-06. Only 25-year-old students who make a loan between September 1, 2005 and December 31, 2008 are entitled to a tax credit so that they can continue their studies without too much financial pressure. Unfortunately, this was removed in 2011. As a result, you can no longer enjoy this even at the ideal age today.

Credit in fine maybe telling you something?

Previously established for a real estate investment, credit in fine will not allow you to lower your taxes if you use it for the acquisition of a principal residence. In addition, using it on the first option will require you to ensure that your tax rate can reach 40%. On the other hand, if it is only 6%, you will get a tax reduction, but not really enough.

Note that the interest rate charged on a late credit will never be equal to a depreciable loan. However, you should ensure that the repayment of your capital is regular and consistent. But here too, this type of loan is no longer allowed either.

How to have a tax reduction on loan then?

Nowadays, if you want to have a tax cut on a loan. consider orienting yourself in acquiring property that you could rent to other people. Indeed, the law Malraux has planned to grant a tax reduction for those who think to buy a property to rent it after. However, you should rehabilitate the object you will buy because it must be visible in a protected area or a historic district. Note that the rehabilitation will guarantee a reduction ranging from 22 to 30% if you do not spend more than 400 000 euros in 4 years.

The Bouvard Act will allow you to obtain an 11% reduction for your taxes as part of a mortgage . On the other hand, you will have to rent the place to a student or a pensioner if you do not want to entrust it to officials of a public or professional health institution. Also know that this reduction prerogative will be offered to you for 9 years if you know how to do it.

Finally, there is the Pinel Law that will allow you to enjoy a 21% tax reduction for 4 years if you opt for the purchase of a new property, but you should rent.

About the Author