Building renovations, the Revenue Agency has just released the new guide. Here is everything you need to know about tax deductions for both individual homes and condominiums
He is about to end up run over, his mother saves himBuilding renovations, the Revenue Agency has just released the new guide. Here is everything you need to know about tax deductions for both individual homes and condominiums.
The Guide explains in detail which interventions can be facilitated, but also who can take advantage of the deduction and how to request the bonus, also taking into account the latest innovations introduced by the 2018 Budget Law. Let's find out all the news.
Bonus also for 2018
The refurbishment works started from 1 January 2018 and up to 31 December will also benefit from the tax deduction of 50% of the expenses incurred up to the limit threshold of 96 thousand euros. The extension concerns both the works on the individual real estate units and the renovation of the common parts of the condominiums.
Deductions, who and how much
You can take advantage of the following deductions:
- 50% of the expenses incurred (transfers made) from 26 June 2012 to 31 December 2018, with a maximum spending limit of 96.000 euros for each real estate unit
- 36%, with the maximum spending limit of 48.000 euros per property unit, of the sums that will be paid from 1 January 2019.
The deduction is due not only to the owners of the properties but also to the holders of real / personal rights of enjoyment on the properties subject to the interventions and who bear the related costs: owners or naked owners, holders of a real right of enjoyment (usufruct, use, dwelling or surface), tenants or borrowers, members of divided and undivided cooperatives, individual entrepreneurs, for properties not included among capital goods or merchandise, subjects indicated in article 5 of the Tuir, which produce income in associated form (simple companies, in collective name, limited partnership and subject to these equivalent, family businesses), under the same conditions as for individual entrepreneurs.
The cohabitant family member of the owner or holder of the property object of the intervention (the spouse, relatives within the third degree and the relatives within the second degree) are also entitled to it, provided they bear the costs and are holders of bank transfers and invoices, the separate spouse assignee of the property in the name of the other spouse, the member of the civil union and the cohabitant more uxorio, neither owner of the property subject to the interventions nor holder of a loan contract, for expenses incurred starting from the 1st January 2016.
The interventions
For which jobs can the 50% deduction be obtained? These are interventions of extraordinary maintenance, restoration and conservative rehabilitation and building renovation carried out on residential properties of any cadastral category, including rural ones, and on their appurtenances.
For interventions by maintenance extraordinary for example:
- • installation of lifts and safety stairs
- • construction and improvement of toilets
- • replacement of external fixtures and doors or shutters with shutters and with modification of the material or type of fixture
- • refurbishment of stairs and ramps
- • interventions aimed at energy saving
- • fencing of the private area
- • construction of internal stairs.
Among restoration and conservative rehabilitation interventions the Guide indicates those aimed at
"To preserve the property and ensure its functionality by means of a set of works which, respecting the typological, formal and structural elements, allow its intended use compatible with it".
For example:
- interventions aimed at eliminating and preventing degraded situations
- adjustment of the heights of the floors in compliance with the existing volumes
- opening of windows for ventilation needs of the premises.
Among restructuring interventions on the other hand, those aimed at transforming a building through a set of works that can lead to a building that is totally or partially different from the previous one are deductible. For example:
- demolition and reconstruction with the same volume of the existing building
- modification of the facade
- construction of an attic or a balcony
- transformation of the attic into the attic or the balcony into the veranda
- opening of new doors and windows
- construction of toilets in expansion of existing surfaces and volumes.
Facilitation for garages and parking spaces
The deduction for renovations will also cover the purchase of appurtenant garages and parking spaces, the expenses related to their construction, and the construction of garages or parking spaces, including shared property, provided that there is a bond of pertinence with a residential real estate unit. .
For simultaneous home and garage purchases with a single act, the deduction is limited to the costs of building the appurtenant box.
Reduced VAT
Only in the case of interventions by recovery of the building stock it is possible to take advantage of a reduction in VAT, which depending on the type of intervention is applied to the performance of services rendered by the company carrying out the work and, in some cases, to the sale of goods.
"In terms of subsidized VAT on the assets that are the subject of the works, the 2018 Budget Law intervened to correctly identify their value when, with the recovery of the building assets, components detached from the same assets are also supplied (this is the case of shutters and consumables used in the assembly phase of a frame); the determination of the value must be carried out, in these cases, on the basis of the functional autonomy of the "detached parts" with respect to the main product " explains the Revenue Agency.
10% reduced VAT cannot be applied to materials or goods supplied by a person other than the one carrying out the work, to materials or goods purchased directly from the client, to professional services, even if carried out as part of the interventions aimed at building renovation, the provision of services rendered in execution of subcontracts to the company executing the works. In this case, the subcontractor must invoice with the ordinary VAT rate of 22% to the main company which, subsequently, will invoice the service to the client with VAT at 10%, if the conditions for doing so are met.
What to do and what documents to present to obtain the deduction
As happens for the energy redevelopment works foreseen by the 2018 eco-bonus, from this year they will have to be sent to Eneaelectronically, also the data relating to the type of restructuring interventions carried out. This information will be used by the Agency to monitor and evaluate the energy savings achieved following the implementation of the renovation works.
Compared to the past, according to the Revenue Agency, the procedures were simplified and reduced. It is sufficient to indicate in the tax return the cadastral data identifying the property and, if the work is carried out by the owner, the registration details of the deed that constitutes the title and the other data required for checking the deduction.
A communication (by registered letter with return receipt or other methods established by the Region) must also be sent to the local health authority with the following information:
- details of the customer of the works and their location
- nature of the intervention to be carried out
- identification data of the company executing the works with explicit assumption of responsibility, by the same, in order to comply with the obligations imposed by current legislation on safety in the workplace and contributions
- start date of the recovery intervention.
The communication to the ASL should not be made in all cases in which the legislative decrees relating to safety conditions on construction sites do not provide for this obligation.
It is then necessary to make the communication to Enea, transmitting through the appropriate site information on the work carried out, as is done for energy redevelopment works.
The other news
With the new restructuring bonus, from this year new beneficiaries are added, i.e. autonomous institutions for public housing and subjects with similar purposes, including housing cooperatives with undivided ownership. The only requirement: the renovations must be carried out on buildings used for public housing or, in the case of cooperatives with undivided ownership, assigned to the members for use.
Extension for the purchase of renovated properties
The deduction for the purchase or assignment of already renovated properties has also been extended until 31 December 2018. The latter is due when the restructuring interventions concern entire buildings and have been carried out by construction companies or real estate renovations and by building cooperatives which, within 18 months, from the date of completion of the works, sell or assign the property.
We remind you that the deduction will be divided into 10 annual installments of the same amount, starting from the year in which the expense is incurred. Finally, payments must be made by bank or postal transfer showing: reason for payment, with reference to the law (article 16-bis of Presidential Decree 917/1986), tax code of the beneficiary of the deduction and tax code or VAT number of the payee.
To consult the guide click here
READ also:
- Ecobonus 2018: all the expected deductions and the different percentages based on the intervention
- Furniture and appliances bonus 2018: requirements and how to request it
- Green bonus 2018: what it includes, requirements and how to request it
- Stoves bonus 2018: deductions from 50 to 65% based on the type
Francesca Mancuso
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