If you already have plans for major purchases, such as the purchase of a new car, it may be wise to make these before the turn of the year. Paying your health insurance premium in advance can also save money on balance: not only do you often receive a discount from your insurer, you also put pressure on your box 3 capital. The same goes for tax assessments.
By paying off debts
If your capital exceeds the exemption for wealth tax, it seems attractive to have debts. After all, you can deduct this from your assets in box 3. Keep in mind that the interest on loans often significantly exceeds the interest on savings. Moreover, only the part that exceeds the threshold of 3,000 euros (or twice as much in the case of a tax partnership) is deductible. You can visit https://fkc-concept.com/evergreen-wealth-formula-review/ for more.
Some debts are not even deductible at all, such as tax debts (with the exception of inheritance tax), corporate debts and debts with a term of less than one year. Therefore, it is preferable to pay off small debts and debts that you cannot deduct before 1 January. This can result in considerable savings.
Or with a green investment
Green investments are another option to reduce your taxable assets in box 3. An exemption of an estimated EUR 57,844 (or double for tax partnership) applies for this in 2018. In addition, you are still entitled to a tax credit of 0.7 percent of the exempt amount in box 3. Please note: the green fund must be recognized as such by the tax authorities.
Or sliding with power
Business assets are also exempt from wealth tax. If you have your own company, it can be attractive to increase the capital in your company and thus reduce your box 3 capital. It has an additional advantage: you also increase the scope to be able to contribute to your fiscal retirement reserve.
Pay mortgage interest in advance
Do you fall in the highest income tax bracket this year and do you expect a significant income drop in 2018? Then it can yield an extra tax saving if you pay part of the mortgage interest for 2018 in advance before the turn of the year, because you can still deduct it in the highest bracket.
It is legally permitted to prepay interest for six months. Prepay has an additional advantage: you can now still deduct the interest at 50 percent instead of 49.5 percent, since the maximum deduction percentage will again be reduced by 0.5 percentage points in 2018.
Quickly take out a mortgage
The borrowing standards for a mortgage will be further tightened in the coming year. If you are about to buy a house, try to get a binding quote from the bank this year.
If this doesn’t work, you may be in luck. Last week, the House of Representatives passed a motion calling on the cabinet to give homebuyers an extra month for this. If the motion is implemented, banks will still be allowed to test mortgage applications that they receive before the turn of the year against current borrowing standards in January.