State Administration of Taxation: For those who transfer their second housing to their first, they can enjoy special additional deduction of housing loan interest.

Recently, the National Tax Administration's 12366 tax service platform responded in the form of addressing hot issues that "if a second home is converted into a first home, and meets the relevant conditions, one can enjoy a special additional deduction for housing loan interest personal income tax." Question: Previously, I had a first home mortgage at a certain interest rate and enjoyed a special additional deduction for housing loan interest. After the issuance of the "Notice on Relevant Matters Regarding Lowering the Interest Rate of Existing First Home Mortgages," I conducted a "mortgage replacement" and signed a new loan contract, still enjoying the interest rate of a first home mortgage. However, the policy states that taxpayers can only enjoy the special additional deduction for housing loan interest once. Can I continue to enjoy this deduction after the "mortgage replacement"? Yes. Taxpayers who conduct a replacement of existing first home mortgages in accordance with the "Notice on Relevant Matters Regarding Lowering the Interest Rate of Existing First Home Mortgages" can continue to enjoy the special additional deduction for housing loan interest, as before and after the replacement, the taxpayer's property remains the same. If there is a change in the loan contract number, you should promptly update the information in the personal income tax app under "Special Additional Deductions" - "Special Additional Deductions for Housing Loan Interest." Question: Do taxpayers who convert their second home into a first home and enjoy the special additional deduction for housing loan interest need to submit any documents? When individuals provide information for the special additional deduction for housing loan interest through the personal income tax app on their phone, they need to provide documents such as the housing loan contract and loan repayment receipts. If the information provided is incomplete or there are uncertainties in the tax declaration, the tax authority will verify the relevant information with the taxpayer according to regulations. Question: In 2021, I used a commercial loan for purchasing a house, meeting the conditions for a first home mortgage interest rate, and enjoyed the special additional deduction for housing loan interest. In 2024, I converted the commercial loan into a housing provident fund loan, and the new housing provident fund loan still has a first home mortgage interest rate. Can I continue to enjoy the special additional deduction for housing loan interest after this conversion? After a taxpayer converts a commercial loan into a housing provident fund loan (including fully converting to a housing provident fund loan, as well as converting to a combination of housing provident fund loan and commercial loan), and the new housing provident fund loan meets the conditions for a first home mortgage interest rate under the "Interim Measures of the State Council on Special Additional Deductions for Personal Income Tax" (State Council [2018] No. 41), they can continue to enjoy the special additional deduction for housing loan interest, as the property remains the same before and after the conversion. Depending on your situation, after providing the necessary information, you can enjoy the deduction through your employer's regular deductions or during the year-end settlement. This article was sourced from "Cai Lianshe" and was edited by Wang Qiujia.