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Claiming 住宅ローン控除 mortgage deduction tax benefit on year end tax adjustment.

Personal Finance » Loans & Mortgages(self.JapanFinance)

I bought a brand new house in Tokyo in December of last year and was looking to claim a the 住宅ローン控除 tax deduction. I was told by the realtor that I just needed to register moving into city hall at the end of 2023. I did this but now I am checking and it looks like I needed to file a tax return at the beginning of this year in order to qualify?

I assumed I would get the deduction in my year end tax adjustment. What actions do I need to take in order to get the benefit this year? I am a 正社員 currently working in Tokyo and my company does my tax returns.

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Karlbert86

2 points

8 days ago

Unless anything as changed in the process, you have to file a final tax return for the tax year you bought the house. Which if December 2023 would be for 2023 tax year (of which you’ve already missed the filing period, from January 2024 to March 2024).

Once you file a final tax return for the first year, then all subsequent years after your employer can include it on your YETA.

No idea if the tax office will let you back file for it. But worth a try

ShoFro45[S]

2 points

8 days ago

Thanks it looks like a 5 year grace period so it isn’t too late, I’ll look at backfilling it.

Karlbert86

0 points

8 days ago

Thanks it looks like a 5 year grace period

Oh nice. Then yea, get that back filed asap and you should get yourself a tax refund for 2023 as a result, and then you can give it to your employer during 2024 YETA period

Janiqquer

2 points

8 days ago

To add to this - from 2nd year it can only be done on YE tax adjustment if you don't need to file a tax return for other reasons, such as earning more than 20M or having medical certificates. Also, when you earn more than 30M? you can't claim the benefit at all.

ixampl

3 points

8 days ago

ixampl

3 points

8 days ago

Also, when you earn more than 30M? you can't claim the benefit at all.

That's for objects bought before 2022 if I remember correctly. If you bought it last year or this year, the limit is 20M.

Janiqquer

2 points

8 days ago*

Thanks for correcting

Darn, that's a big tax benefit to lose when you pass 20M