In case of inherited property it may prove useful to know How does the renovation deduction work. In fact, we remind you that taxpayers who renovate homes and common areas of residential buildings located in the State can deduct part of the costs incurred for the work from personal income tax (Irpef). But what happens when the taxpayer dies? Let’s find out together.
TO Tax Todaythe online magazine of the Revenue Agency, was asked: “In the year of death of a taxpayer, is the building renovation installment in the tax return deductible by the deceased or by the heirs (if they are entitled to it)?”.
Who can deduct the deceased’s renovation costs?
In providing its response, the Tax Office recalled that, in the case of acquisition of the property by successionthe residual deduction quotas are transferred in full exclusively to theheir or garlic heirs (in equal parts) which retain the “material and direct possession of the property”.
This means that the benefit is available to those who can dispose of the property, even if you don’t use it as your main home. The tax authorities then underlined that the condition of possession of the asset must exist not only for the year of acceptance of the inheritance, but also for each year for which one wishes to benefit from the deduction instalment.
In light of this, having met the required requirements, the portion of the deduction relating to the year of death is transferred to the heirs, “as the general rule is applicable according to which, to determine who can benefit from the portion of the deduction relating to a year, it is necessary to identify the taxpayer who owned the property on 31 December of that year”.
Home renovation bonus
The so-called renovation bonus allows taxpayers who renovate homes and common areas of residential buildings located in the State to deduct part of the expenses incurred for the work from personal income tax (Irpef).
In detail, taxpayers can deduct from Irpef 50% of expenses incurred from 26 June 2012 to 31 December 2024, with a maximum limit of 96,000 euros for each real estate unit. The deduction must be divided into ten annual installments of the same amount. As regards expenses incurred for anti-seismic interventions, higher deductions are also envisaged, which can reach up to 85%.
The renovation bonus is aimed at taxpayers subject to Irpef, whether or not resident in the territory of the State, who bear the restructuring costs. In particular, those who are interested are the owners of the properties involved in the intervention; holders of real/personal rights of enjoyment over real estate; the tenants; the family member cohabiting with the owner or holder of the property subject to the intervention (spouse, member of the civil union, relatives up to the third degree and relatives up to the second degree); the more uxorio cohabitant (for expenses incurred starting from 1 January 2016).
