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  • 1 Post By Oldtimer
  • 1 Post By ClueMinus

home loan interest deduction

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  1. #1

    Join Date
    Aug 2009
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    home loan interest deduction

    just filling in my taxes and grappling with the fact that i changed from hsbc to boc for the mortgage of my home where i live (and increased the amount slightly).

    i fill in the home loan deduction section for the hsbc piece and then enter boc information for the section where it says 'interest payments involving re-mortgaged loan'.

    after filling it all in i checked the final calculation and it only shows the deduction for the hsbc part of the mortgage. am i doing something wrong?


  2. #2

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    Not sure, but could it be that interest on re-mortgaged loans is not deductible?


  3. #3

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    Quote Originally Posted by Dreadnought:
    Not sure, but could it be that interest on re-mortgaged loans is not deductible?
    well that's my question, but the guide does not seem to suggest so

  4. #4

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    Loan on remortgage is deductible.

    ClueMinus likes this.

  5. #5

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    Quote Originally Posted by Oldtimer:
    Loan on remortgage is deductible.
    thta's what i think,but where do you fill in it? under home loan interest or under the re-mortgage section?

  6. #6

    Join Date
    Mar 2012
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    Quote Originally Posted by cookie09:
    thta's what i think,but where do you fill in it? under home loan interest or under the re-mortgage section?
    Assuming your home is owned only by you and used exclusively as your residence throughout the year, you are allowed 100K deduction on the interest paid to the bank. See this example. See Cap 112 s 26E Home loan interest for the full text of the law if you are interested.

    As to the specifics of filling in the form, search for "How to Lodge a Claim" in this page.
    Last edited by ClueMinus; 12-05-2012 at 09:57 PM. Reason: Added links
    drumbrake likes this.

  7. #7

    Join Date
    Aug 2006
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    A couple of points about home loan interest deduction. In recent years, the amount of interest that I have been paying has been extremely low (HIBOR mortgages), and this coupled with the 10 year limit for granting deductions meant I stopped claiming, instead thinking I would start claiming again when interest rates rise. However, the 10 years has now been extended to 15 years, so perhaps time to start claiming again, even for small amounts. Anything wrong with my reasoning?