Online payday loan consolidation -A convenient way to consolidate payday loans

Although in theory, they differ their rules of granting, conditions and general target of clients, it is a matter of both loans and payday loans, credits and credits have a common point. These are, of course, interest, i.e. the additional costs associated with the commitment. The vast majority are an integral part of the money that is borrowed, there is interest. Their existence is completely natural – institutions must eventually earn something. However, there are ways to deduct interest – how does it work?

The vast majority of the population has or will have such a moment when the current income and savings will not help finance the important expense. For centuries, institutions offering money lending have faced financial needs in such situations. The assumptions of loan institutions and banks openly focus on helping people in need. Keep in mind, however, that this is not free, of course. This service is called lending percent. It involves the use of a fixed amount of money, which the borrower is obliged to pay off, by paying interest.

In this way, banks and non-banking institutions earn and thrive. However, it is possible to deduct interest on the loan in exceptional cases and cases specified by Polish law. This takes place within the so-called acquired rights. Let’s learn the rules that determine the deduction of interest.

A convenient way to consolidate payday loans get out debt

Under these acquired rights, the expenses incurred for the repayment of interest are deducted from the income in the following cases.

  1. From the loan that was granted in the years 2002 – 2006. The person who obtained it must be subject to unlimited tax liability. It covers the financing of investments aimed at satisfying their own housing needs. They must be associated primarily with the construction of a residential building. The second option is to contribute construction or housing to a housing cooperative to acquire the right to a newly built building or flat. Another one is the possibility of buying a newly built building or premises from a commune or a person. The fourth option is the superstructure or extension of buildings for residential purposes, as well as the modification of a non-residential building for such purposes.
  2. From a loan or loan was taken out to repay a given home loan.
  3. From each loan or loan that has been taken out to pay the benefits listed in the first and second point.

The deduction is not applied in turn, in the following cases.

  • If the taxpayer or his spouse has used or as part of the acquired rights, he will benefit from deduction from income, income or tax on expenses incurred for his own housing purposes.
  • If you are talking about interest on loans:
    1. Loans from housing and housing associations granted by the National Housing Fund, which channel funds for investment and construction projects.
    2. They are granted for the elimination of the effects of flooding under the rules specified in the regulations on certain forms of supporting housing construction.
    3. Granted by housing coffers according to the rules specified in the regulations on certain forms of supporting housing construction.
    4. Used for the acquisition of land or perpetual usufruct right to land.

The said deduction covers interest on the part of the loan that does not exceed – note, there may be a muddle – an amount representing a product of 70 square meters of usable space and a conversion factor of 1 square meter of the usable area of a residential building.

Here’s how the specific limits are presented:

  • In the years 2002 – 2007, the limit is PLN 189,000.
  • In 2008 – the limited amount is PLN 212,870
  • In 2009 – the limit was set at PLN 243,460.
  • In 2010 – the limit is PLN 264,810.
  • In turn, in the years 2011 – 2018 – the limit means the amount of 325 990 PLN.

It is worth noting that the limit applies only to those interest that is paid jointly by both spouses.

Other conditions of interest relief:

Finally, let’s give the last restrictions that have been set in case we want to deduct interest on the loan.

  • In the case of consolidation payday loans, interest on the part of the loan is deducted- check here.
  • The amount of interest paid is documented by means of proof. It is presented in a written entity authorized to grant loans. This is governed by the banking law and regulations on cooperative savings banks.
  • The deduction is made at the earliest for the tax year in which the housing project has been completed.
  • Deductions are always made through a tax return PIT-36 or PIT-37.
  • The tax return, in which tax relief is applied for the first time, is additionally accompanied by a statement which determines the amount of all expenses incurred in connection with a particular investment.
  • The amount of interest that has been paid in a given tax year does not go into deduction in the following tax years. The only exception to this strictly defined principle is the difference between the amount of interest that is to be deducted in the first year of application of the allowance and the amount that was deducted this year in fact.

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