Thread: Declaring Mortgage Interest rates on tax form

The Revenue dept allows mortgage owners to tax deduct the interest up to 50K a year. As the co-signer on our house with is owned under my wife's name am I allowed to claim the tax deductions under my personal tax form or do we have to joint claim?

If you are a foreigner, the Revenue Dept. has, historically, not allowed you to declare this as a deduction on your income. Rather, it must be declared as a deduction on your [Thai] wife's income.

If your [Thai] wife does not earn income, you are traditionally meet with one of two answers:

(1) how did your [Thai] wife get the mortgage?
(2) how, as a foreigner, did you get the mortgage?

If you are a Thai, I understand the rules are you need to nominate one of you who will be entitled to the tax deduction and then that person is allowed to claim throughtout the life of the mortage. As I understand it, and I could be wrong, the Revenue Dept. does not look favorably on annual changes to the claimant of the tax deduction entitlement.

Nevertheless, you should still check this with your Accountant.

~W~

He's a right clever bastard is our William.

Handsome devil, too!

Originally Posted by William

If you are a foreigner, the Revenue Dept. has, historically, not allowed you to declare this as a deduction on your income. Rather, it must be declared as a deduction on your [Thai] wife's income.

If your [Thai] wife does not earn income, you are traditionally meet with one of two answers:

(1) how did your [Thai] wife get the mortgage?
(2) how, as a foreigner, did you get the mortgage?



Nevertheless, you should still check this with your Accountant.

~W~

Both my wife and I are listed on the mortgage since It was given to us on our combined salaries. It was very very simple to get and the only bank to decline us was Thai farmers. I am presuming since I am listed on the Mortgage that it should be a very simple tax deduction. I am hoping it will be since It will be a considerable deduction. Will let you know. Will see if my workplace accountant can get it through or if I have to pay the 3000B for a private accountant.

WYD

Originally Posted by whosyourdaddy

Originally Posted by William

If you are a foreigner, the Revenue Dept. has, historically, not allowed you to declare this as a deduction on your income. Rather, it must be declared as a deduction on your [Thai] wife's income.

If your [Thai] wife does not earn income, you are traditionally meet with one of two answers:

(1) how did your [Thai] wife get the mortgage?
(2) how, as a foreigner, did you get the mortgage?



Nevertheless, you should still check this with your Accountant.

~W~

Both my wife and I are listed on the mortgage since It was given to us on our combined salaries. It was very very simple to get and the only bank to decline us was Thai farmers. I am presuming since I am listed on the Mortgage that it should be a very simple tax deduction. I am hoping it will be since It will be a considerable deduction. Will let you know. Will see if my workplace accountant can get it through or if I have to pay the 3000B for a private accountant.

WYD

You may well be listed on the mortgage documentation as being a guarantor or joint-borrower. Nonetheless, Thai law is very clear on one fact "the money to buy property must belong to your wife". Thus, for income tax purposes, how can you have a mortgage?

It is one of the craziest things that can happen. I know, from personal experience, that if you submit a tax rebate for mortage interest the Revenue Department will ask you to explain how you managed to get a mortgage in Thailand?

Also, if you have a joint-mortgage with your wife, can I ask if the mortgage is 10 years or less, or 25/30 years? In the event it is the former, likely as not it is not a mortgage but a loan, which is not tax deductible.

In any event, try and claim the tax rebate - but keep in mind that by doing so you leave yourself prone to a tax investigation into your [Thai] finances (as the Revenue Department is at liberty to inspect any claim for a rebate in taxes).

~W~

for clarification purposes:

"Following the publication of the Notification of the Ministry of Interior re Application for the Acquisition of Land by Thai National Who Has or Used to Have Alien Spouse and Juvenile Child of Alien Who Has Thai Nationality (published on 4 October 2001) this prohibition was lifted and Thai spouses of foreign nationals are now allowed to own land provided that the foreign spouse confirms in writing that all of the money used to purchase the land belongs to the Thai national spouse and that the foreign spouse has no claim over this money or the property as a common property of the marriage. "

Subtavee Home loan - 10 years from Krung Thai Bank is what we got. If my thai is right I am the "Co-owner' of the mortgage. I have an accountant looking at it now and everything looks ok. Will let you know in May if it went through.

Do you honesty think the land office has any relationship with the tax office. According to Thai law, anyone in the household can claim the deductions for the mortgage. It does not have to be the holder of the mortgage. I am just wondering if I need to get a Yellow house registration book. Hopefully the accountant will know.

SEE YA

WYD

I'm interested in finding this out as well.

So am I. The Revenue Code's English language translation states:

"Actual amount paid, but not exceeding Bt. 50,000" (on tax deduction for % paid). I cannot recall any reference to this being a household entitlement, but if it were, one would assume you would need to be registered in the "Blue-book", for which I understand farangs cannot be.

hmmm - time for some more research

Glad to hear things went well for you.

Just out of interest, when you purchased the house, did you sign anything saying the money to pay for the land was bought with your wife's money?

Originally Posted by whosyourdaddy

Yes very easy for a farang to deduct the mortgage from their personal tax form. The bank gave us the paperwork which stated how much interest we paid in the calander year. Since it was a joint mortgage the bank said we could each claim 1/2 of the amount and gave us both the proper forms. Just attach the forms to form 91. Simple and logical.

Cool. I'll get my company accountant on it!

Now, I wonder what I'll spend the refund on....

Originally Posted by William

Glad to hear things went well for you.

Just out of interest, when you purchased the house, did you sign anything saying the money to pay for the land was bought with your wife's money?

No.. The land office did not ask for that, even though I was standing there. It may have to do with the fact that my wife did not change then. Also the fact that we signed the papers directly over to the Bank ( and had to pay the banks share of the property tax.. ouch .. never saw that coming)