Answer the following questions to determine whether your deductible interests are fully deductible or capped.
If you have any questions, contact our customer support.
From 2023, except for specific rental or investment cases, the rental value of each residence is generally fixed. This assessment occurs immediately upon completion of construction or acquisition, provided the building meets the required residential criteria.
If the property is still under construction, requires significant repairs, or is in an advanced state of decay, it cannot be considered a residence until the work is completed.
Before the rental value is established, you are allowed to deduct the interest paid as well as financing costs associated with acquisition or renovation works. Once the rental value is established, only interest and annuity payments can be deducted, with annual deductible limits set based on family situation and the year of moving into the property.
State or employer interest subsidies can reduce these deductible costs.
