How to sell a house with a mortgage? What does it mean to deduct personal income tax from mortgage interest?

In the process of real estate purchase, there will be many procedures that we have never come into contact with before, because it is impossible for everyone to buy like buying vegetables every day. Today we mainly share with you how to sell a house with a mortgage? What does it mean to deduct personal income tax from mortgage interest? Is the personal income tax mortgage deduction ratio yes or no? I hope it will be useful to you.

Contents of this article

1. How to sell a house with a mortgage

2. What does it mean to deduct personal income tax from mortgage interest?

3. Choose Yes or No for the personal income tax mortgage deduction ratio

How to sell a house with a mortgage

1. Houses with unpaid loans can be bought and sold, but the prerequisite is that a state-recognized house title certificate must have been obtained, because second-hand house transactions are based on the property certificate.

2. If you have already bought a house with a loan, but the house is still under construction, you can transfer the house by changing the name of the contract. You need to negotiate with the developer first, and after obtaining consent, you can cancel the original contract filing, and then let the buyer and the developer sign a new contract and file it.

3. If there is an outstanding loan for the second-hand house transaction, the buyer and seller can go through the mortgage transfer procedure when conducting the second-hand house transaction. Mortgage transfer means that the homeowner is preparing to sell or transfer the house to a third party, and thus apply for relevant changes in the loan.

What does it mean to deduct personal income tax from mortgage interest?

The mortgage interest is deducted from the personal income tax, which means that when calculating personal income tax, the interest generated by the mortgage is first deducted as a pre-tax deduction item, and the income after the deduction is subject to personal income tax. In other words, when calculating the amount of personal income tax to be paid, the mortgage interest is deducted from the income first.

Before mortgage interest deduction for individual income tax: taxable income = salary income - five social insurances and one housing fund - individual income tax threshold. After mortgage interest deduction for individual income tax: taxable income = salary income - five social insurances and one housing fund - individual income tax threshold - mortgage interest;

Individual income tax on wages and salaries = taxable income × applicable tax rate – quick deduction amount;

If the taxable income is 5,000 yuan, the corresponding level is 3, and the personal income tax = 5,000*20%-555;

If the taxable income is 40,000 yuan, the corresponding level is 5, and personal income tax = 40,000*30%-2,755.

By comparing the personal tax amount before and after the mortgage interest is deducted, you can find out how much money you have saved.

Select Yes or No for the personal income tax mortgage deduction ratio

1. There are two main types of mortgage deductions: the first is 50% for each spouse, and the second is 100% for each spouse. In the spouse information column, if you select "no spouse", the personal deduction ratio defaults to 100%.

2. If you choose to have a spouse, you need to add the spouse's information. At this time, the couple needs to negotiate. If only one party meets the tax deduction standard, then one person can deduct 100%. Select "No" in the deduction ratio option.

3. If both of you meet the deduction criteria, select "Yes" in the deduction ratio, so that each spouse can deduct 50%.