Here you will find the right answers
The moneyland.ch forum lets you exchange knowledge on numerous topics related to money and get answers to your questions at any time. Join forum users and experts in discussions relating to banking, investment, insurance, retirement, telecom and everyday money topics.
Show categories
Hi All,
1. If I make 200k downpayment - is this amount still part of my wealth which will determine which tax bracket I am?
2. I've read that mortgage payments are tax deductable. For example, if I paid 20k/year in interest on my mortgage loan and given that I earned 130k that year - is my taxable income simply reduced by 20k i.e. becomes 110k?
1. If I make 200k downpayment - is this amount still part of my wealth which will determine which tax bracket I am?
Yes. Equity in real estate still counts towards your total taxable wealth.
2. I've read that mortgage payments are tax deductable. For example, if I paid 20k/year in interest on my mortgage loan and given that I earned 130k that year - is my taxable income simply reduced by 20k i.e. becomes 110k?
You can deduct the interest you pay for a mortgage from your taxable income. Mortgage debt (the bank's equity in your home) does not count towards your taxable wealth.
Hi
1. No, you invest the down payment in the property and it is no longer part of your assets. Instead, the property is part of your assets and the mortgage is deducted from your assets (the net assets then amount to around CHF 200,000 again, at least at the beginning).
2. Yes, the mortgage interest can be deducted from your taxable income. However, there is an upper limit of CHF 50,000 (plus certain income) and other conditions (only applies to owner-occupied residential property).
Best regards
Chris
