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Conditions for deduction of home loan interest

A taxpayer owns a property for his own use, and the interest paid for obtaining a loan is deductible. Starting from 2017/18, the deduction period has been extended to 20 years (can be continuous or not), and the maximum tax deduction is $100,000. Taxpayers must meet the following conditions to make a claim:

1. The taxpayer is the joint or decentralized holder of the property

2. The loan is entirely used to purchase self-occupied property

3. The interest on the loan was paid in the year of the claim

4. The loan is obtained from an authorized institution

5. The loan must be a mortgage for a Hong Kong residential property

6. The purpose of the property is residential, not commercial or industrial

7. The property must be the main residence of the taxpayer

It should be noted in point 3 above that the year of loan interest deduction does not depend on the year in which the interest is incurred, but should be the year in which the interest is paid.

The above information is for reference only. If in doubt, we welcome your tax inquiries

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