Tips to save on the income statement before the end of the year

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The tax year is about to end, but there is still room to save on the income statement. The Organization of Consumers and Users (OCU) recalls some advice related to investments (pension plans, capital gains and losses) but also more daily issues (habitual residence, salary, etc.), to minimize the amount of taxes on to pay.

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EITB Media has spoken with Kepa Loizaga, delegate of the OCU in Euskadi, to find out the tips and save on the income statement.

The contribution to pension plans It may be interesting for those who obtain income from work, but also from professional or business activities and from real estate rentals (as long as they also have income of the two previous types) for which they are taxed in personal income tax.

Wait until you are 65 to sell your home. Gains from the transfer of the habitual residence (in which you reside for three continuous years) when you are 65 years of age or older, are exempt from personal income tax. For this reason, the OCU recommends waiting until reaching that age to take advantage of the exemption.

The donations to NGOs, foundations and non-profit entities deduct 80% on the first 150 euros, and 35% on what exceeds that amount (this percentage rises to 40% if it is the third year that it is donated to the same entity and each donation has been equal to or greater than the of the previous).

Communicate any changes in the family. If a child is born, if there is a divorce, if there is a disability… The amount of personal income tax withholding depends, among other things, on family circumstances and in this way it will be as adjusted as possible.

The mortgage amortization It is another recurring way to reduce the tax bill. Those who bought their main home financed before January 1, 2013 may apply a 15% deduction on what they have paid in 2022 for the loan, up to a maximum of 9,040 euros per year per statement. Therefore, what matters is to repay an amount up to that limit early in order to fully take advantage of the deduction. The commissions for early cancellation that some entities charge are also deductible within 9040 euros.

Planning of capital gains and losses. If during 2022 profits have been obtained and, in turn, losses accumulate in other investments, you could materialize said losses to offset them with the profits.

The new personal income tax deductions for energy efficiency improvement works of the house allow you to deduct 20%, 40% or 60% on a maximum base of 5,000 or 7,500 euros depending on the type of work. Remember that in order to be able to deduct in the next declaration, you must have an energy efficiency certificate prior to the works and a subsequent one with a maximum date of December 31, 2022.