Mortgage Interest Deductable For Tax

[rgw]

Have a mortgage on 'our' house, and was wondering if we can deduct the interest that we pay for it.

The revenue department website says the taxpayer can deduct max 100.000 THB of paid interest for mortgage from his taxes

Interest(mortgage) is paid however under my wifes name, but as we have been married the whole year, i think we could deduct it, when we file taxes together.

Anybody have any idea ?

[mark5335]

If your wife is the sole borrower, only she can claim the tax deduction. The fact that you may be the guarantor does not entitle you to the tax deduction also.

[rgw]

If your wife is the sole borrower, only she can claim the tax deduction. The fact that you may be the guarantor does not entitle you to the tax deduction also.

Wife called RD today.

Seems that it is possible as married couple, even though technically she is the one paying for the mortgage, we can deduct the paid interest as a married couple on my income tax paperwork.

I read that the maximum this year was 100K, that would be nice to get back.

[thaiwanderer]

I would imagine (though i do not know) that you won't get 100k back, rather you can deduct 100k from the amount that is liable to tax?

[torrenova]

Yeah, at the marginal rate of 10%, you would save 100,000 * 10% = 10,000. No-one is going to give you 100,000 !

[rgw]

Yeah, at the marginal rate of 10%, you would save 100,000 * 10% = 10,000. No-one is going to give you 100,000 !

Indeed correct.

Now being married for almost 2 years, we can completely combine our paperwork and I saw the allowance on paid mortgage-interest. It says a max 100K allowance or the actual amount of interest paid. I paid more then 100K in interest only, so indeed I should be able to use that full allowance.

Then indeed with a 30% bracket, I would only get 30% of that back.

Pitty that it's maxed at 100K, but still not bad.

[skippybangkok]

Yeah, at the marginal rate of 10%, you would save 100,000 * 10% = 10,000. No-one is going to give you 100,000 !

Depending on how much tax you paid, if you invested in LTF prior to the end of the year to the max allowed (if in high tax bracket), you would actually get back around 200,000 baht.

Edited January 23, 2010 by skippybangkok