Are building loans tax deductible?

Private Loan Interest Deductible?


You will not be able to deduct a loan or loan amortization expenses from tax. However, the interest on the loan can have an impact. Loan interest is deductible if the loan was taken out to generate income.
In addition to the landlords who have taken out a loan to finance a property, entrepreneurs in particular can deduct debt interest. The prerequisite is that the loan serves the company. But the loan interest for a training loan also counts as training costs.
Interest on debt that is paid in the economic context of financing a private pension that can be deducted as special expenses is, in turn, not deductible as a permanent burden.
However, interest can be claimed for purchases or services that are assigned to the extraordinary charges.

Veronika Federweißer has to sit in a wheelchair and can no longer get into her apartment on the first floor without a stairlift. She buys a lift and finances it with a loan. The interest on the loan (and the cost of the lift) are exceptional charges.

Education loan, student loan, BAföG, master BAföG

With an educational loan, only the interest you pay is important for the tax return. While the repayment installments for a student loan are not deductible, the interest is income-related expenses (in the case of advanced training) or special expenses (in the case of vocational training).
Students and schoolchildren usually receive BAföG as a tax-free payment. You do not have to enter this in your income tax return.
However, if it is so-called book money or if you are reimbursed for course or examination fees within the Master BAföG, you must offset these reimbursements against your costs.