For those who purchase a renovated property there could be a house bonus which reaches up to 48,000 euros thanks to 50% deduction. Not everyone knows, in fact, but the deduction for interventions for the recovery of the building heritage is 50% on an expense maximum of 96,000 eurosalso applies to the purchase of completely renovated properties.
The 50% deduction, which provides a tax benefit up to 48,000 eurosin fact, does not only concern home renovations, but also thepurchase of renovated properties by construction companies or building cooperatives. To benefit from it, however, it is necessary to respect specific conditions which we will see below.
50% deduction for the purchase of renovated properties
The 50% deduction for the recovery of the building heritage provided for by article 16, paragraph 1 of Legislative Decree 63 of 2013, is also valid if a renovated property is purchased. In order to benefit from the tax benefit, however, it is necessary that theentire building has been the subject of renovation (and not just the property being purchased) by a construction company or a building cooperative that has taken steps to:
- L’disposal of the property within 6 months from the end of the works;
- L’assignment of the real estate unit within 6 months of completion of the works.
The important thing to be entitled to a discount of up to 48,000 euros, even if you purchase a apartment in condominiumis that the entire building has been renovated.
How is the deduction amount calculated?
For renovation, a deduction is usually granted equal to 50% of the expense incurred within the limit of 96,000 euros. For those who buy a renovated house, however, even if the deduction is similar, the calculation happens differently. Not being able to count on the expense incurred for the renovation, the calculation of the deduction takes place on a flat rate basis and is equal to 50% of 25% of the purchase price or assignment of the property (the price that appears on the deed of sale), always in maximum limit of 96,000 euros.
Let’s take a concrete example to better understand how the tax benefit works. If you buy an apartment in a completely renovated building and pay 236,000 euros for it, how is the deduction calculated?
First of all, you get 25% of the purchase price, or 59,000 euros. A 25% deduction is due on this amount, i.e. 28,000 euros recoverable in ten annual installments of the same amount.
Let’s take another example. You buy an apartment in a completely renovated building and pay 420,000 euros for it. 25% of this amount is 105,000 on which a deduction of 48,000 euros is due: in this case, in fact, 50% of the 25% is not calculated because the amount obtained exceeds the maximum limit established for the benefit (96,000 euros) ; in fact, therefore, you obtain the maximum possible deduction.
What documents are needed for the 50% deduction?
What are the necessary documents to be entitled to the benefit? First of all, unlike what normally happens with the restructuring bonus, it is not needed that the payment for the property is made with wire transfer. The important thing, however, is that the person requesting the deduction is in possession of the deed of purchase or assignment of the property (even the registered preliminary sale is useful) as long as the purchase or assignment deadlines are respected within 6 months from the end of the works.
In this case, the buyer should ask the selling company for one declaration certifying possession of the required requirements (compliance with the 6-month deadline) if not present in the purchase deed.
It must be remembered, in fact, that the benefit of the deduction applies
“in the case of interventions involving entire buildings, carried out by real estate construction or renovation companies and by building cooperatives which arrange, within 6 months from the date of completion of the works, the subsequent disposal or assignment of the property”.
Pay attention to the requirements to have a discount of 48,000 euros on the purchase
Let’s summarize the conditions for taking advantage of the 50% Irpef deduction in the case of purchase of a renovated property from a construction company or building cooperative:
- the restructuring must concern theentire building;
- interventions must concern restoration And conservative restoration or renovation;
- the property must be alienated or assigned by the construction company within 6 months of completion of the works;
- it is not necessary for all real estate units to be sold or transferred;
- on the deed of purchase or assignment conditions must be met to be entitled to the deduction they are respected, otherwise a declaration from the construction company is required;
- only those are included in the benefit residential properties.
