[Homes] Can the deduction be used when expanding or remodeling during the mortgage deduction? Let's check the applicable conditions and procedures | Useful information for housing

Can the deduction be used when expanding or remodeling during the mortgage deduction?

Even if you received a mortgage deduction at the time of new construction or property purchase, you can use the mortgage deduction at the same time if you meet certain conditions at the time of extension or renovation. There are three types of housing loan deductions for extensions, renovations, and renovations:

Energy-saving renovation work

Only work to improve the thermal insulation of the house and work associated with the installation of solar power generation equipment is permitted.

Barrier-free renovation work

Construction to improve housing functions so that elderly people and people with physical disabilities can live without inconvenience, such as adding handrails to bathrooms and corridors and eliminating steps at the entrance. Barrier-free renovation work is for work done by individuals, and there are certain conditions such as the person doing the renovation being over 50 years old or living with an elderly person or person with a disability.

Multi-family cohabitation renovation work

Construction to add kitchens, bathrooms, toilets and entrances for multiple households to live together. *Must be a resident from April 1, 2016 to December 31, 2021.

What are the conditions for home loan deduction for extension and renovation?

In order for home loan deduction to be applied for extension or renovation, certain conditions must be met. The following conditions are typical examples.

What is the procedure to receive a home loan deduction?

Even if you receive a housing loan deduction for extension or renovation, you need to file a tax return in the first year after moving in, just like a normal housing loan deduction. You can file a tax return at your local tax office or on the National Tax Agency website.

Required Documents

Certificates of Registered Matters issued by the Legal Affairs Bureau can now be requested online. It has become more convenient than before, as it can be ordered from the comfort of your own home, and the handling fee is lower than when requesting issuance at the counter.

Summary

For example, “I want to add more children’s rooms because my child is older” or “I decided to live with my parents, so I want to make it barrier-free.” There may be times when you need to renovate or renovate. In such a case, let's take advantage of the mortgage deduction well.