How you can take advantage of deductions 50% on restructuring real estate: who can benefit, the main novelties 2012, as demand repayment, interventions deductible (1/4)

In order to encourage the building renovations, thereby increasing the renewal of housing interventions since 1998 have been in force in Italy, some tax rebates on the "recovery" of real estate.

The main concepts of building deduction

The legislation sets out the main cost items of a building renovation, thus enabling a substantial saving on interventions aimed at the recovery of the real estate. Although the legislation has been simplified compared to previous years, go to the deduction is not very simple and you have to avoid mistakes that can lead, in the case of checks, the loss of subsidy.

Since January 1, 2012 has been introduced an important novelty: the deduction for building renovation is permanent. In addition, until 30 June 2013 the rate was raised from 36% to 50% and has increased the spending ceiling, which rose from € 48000 to € 96000. This innovation allows then to deduct from their income tax up to 4800 Euros for 10 years.

The deduction is related to expenditure incurred to renovate homes and common parts of residential buildings. It is therefore not permitted for other uses such as shops, hotels, manufacturing buildings. For residential property with mixed use (eg home to professional, commercial, bed and breakfast, etc.) the deduction is applicable to a lesser extent.

The taxpayer may request facilitation on the principle of cash that is taking into account only those expenses paid in the current year.

In the case of work lasted several years you will have access to the deduction only if the maximum expenditure was not been achieved in previous years. In other words, for a particular job, you can make a claim for the deduction once but, within the limit of EUR 96000, it is possible to carry out the work over several years.

The deduction can not be greater than the tax that the taxpayer has to pay income tax in a given year. If, for example, the income tax payable is 2000 Euros and the deduction for restructuring due is 2500 Euros, the taxpayer will not be refunded excess of € 500 and can not even get them in subsequent years. Simply lose the credit of 500 Euros.

In addition, if the expenses are paid by more people the limit is always € 96,000 (€ 48,000 after June 30, 2013).

Will please those who make a building renovation, know that they can also be reimbursed part of the costs of direct purchase of the material: it is still necessary, however obvious, that this burden is evident from the construction company's invoices, and payment to be made by means transfer (on modules predetermined by the credit institution making the transaction).

Major new 2012

The deduction for building renovation (36% and up to 30 June 2013 of 50%) has been active since 1998. After more than a decade, these are the fundamental changes:

- The company is no longer required to include in the bill the cost of labor

- It is no longer necessary to send the communication of the work at the center of Pescara.

- The deduction is always and necessarily divided in 10 annual installments for taxpayers elderly (over 75 to 80 years).

- The withholding tax, ie the share of taxes withheld to the payment, that banks must apply is 4% and not more than 10%.

- Ability to apply facilitation for restoration or reconstruction of buildings damaged by natural disasters in the events that led to the declaration of a state of emergency.

- Possibility for the taxpayer who is enjoying dll'agevolazione but that he plans to sell the property for subsequent years to maintain the facility or transfer the right buyer.

Who can ask for a refund

Before we see, in more detail, how the debt relief program require that the tax authorities, let us pause for a moment to understand who are those who can ask for a refund.

The person entitled to bring an application for assistance for the recovery of the housing is in fact the one who made the payment of the work. It takes into account about chepotrebbero be differences between the nature of the "payer" and the one who can instead be regarded as the beneficiary of the works.

The applicant of the deduction may therefore be the property owner or cohabiting, bare owners or holders of real rights (usufruct, habitation), bailees or tenants who use free housing, prospective buyers of real estate or cooperative partners in shared ownership and undivided, members of partnerships, in accomandati simple, general partnership and family businesses.

Who can take advantage of the refund is not necessarily the owner but one who, having some right on the property, make payments.

Bear in mind, again, that "family" of the owners are those who fall inside the enclosure consists of spouse, relatives within the third degree and relatives up to the second degree. In these cases it is not necessary to subscribe to a free loan of the property nor is it necessary to present a certificate or statement that can demonstrate the degree of relationship.

In contrast, in the case of lease, the formal documentation must be for the deduction includes the lease duly registered.

Work done "in house" or building contractor

Still regarding the benefits obtainable, the deduction may be increased to 50% (36%) even in the case of execution of the work on their own, though only for expenses incurred for the purchase of materials used (on which the taxpayer pay the ' ordinary rate of VAT, and not the reduced one).

However, if the person requesting the contribution is building contractor, the percentage will be applied to all expenditure self-invoiced with VAT (value added tax) of 10%.

How much you can deduct: Limit of 96000 Euros (EUR 48000)

The limit of 96,000 Euros (48,000 Euros after 30/06/2013) is applicable for building which has been renovated, and the requesting person. As a result, in the event that a property is the subject of joint ownership, the total cost must be divided among all the co-owners who have incurred the expenses.

In the event of death of the taxpayer, the right to deduct is transmitted to the heirs who retain possession of the material and directed well (in a more synthetic, those who "use" the house).

Limits of deduction and access to reimbursement

Once you have determined what expenses fall into the benefits, and who can apply for the tax benefit, it remains to understand what are the limits of deductions and what needs to be done in order to gain access to the bonus mentioned above. Proceed with order, and see what the maximum expenses eligible for aid.

In the first instance, we recall that the maximum expenditure for aid must be equal to 96,000 euro until 30 June 2013 and 48 thousand euro after this deadline. Taking into account that the percentage share of the deductible is equal to 50% (after 30 June 2013 the percentage will return to 36%), resulting in a net saving of 48,000 Euros in the case of maximum expenditure.

It also takes into account that the property on which the deduction may be ordered not need to be home and can be included expenses for work in related appurtenances (garages, basements, etc.).

With regard to the time distribution of the tax benefit, we point out how the bonus of 50% (36%) can not be enjoyed on a single occasion, but divided in 10 annual installments of equal amount.

Property for mixed use

You can also ask for access to the deduction in cases of mixed use buildings used to. In this case (for example, the real estate unit used as a home, for office, such as bed and breakfast), you will be entitled to half of the deduction, ie 25% (18% at June 30, 2013) on the actual costs incurred by the person requesting the access to tax deduction.

What are the actions deductible

It now remains to understand what interventions "be subsidized," or what are the actions that act upon the objective requirement useful to be able to have the tax benefit.

In principle, and for simplicity of explanation of the regulations in question, it is possible to divide these measures into two broad categories:

- Only for private housing units are deductible extraordinary maintenance, rehabilitation and conservative building renovation.

- For common areas of residential buildings is deductible even routine maintenance

The list above is, however, enriched by a large number of evidence and interpretations that have, from time to time, widened or narrowed down the fence and evaluation of the works of the property subject to the benefit.

Think of the possibility to deduct the costs of the works for the safety of the plant (DM 37/08) on the part of the owners, or the work of energy saving (which is scheduled for a 'special deduction of 55%) , the works "theft", those aimed at the elimination of architectural barriers, or even revisiting the works of the real estate against domestic accidents, and much more.

The high number of interventions that provide access to the deductions should not be confused with the opportunity to benefit from the tax bonus for any type of "touch-up" to your home.

Do not fall, in fact, of the activities eligible for aid, the works inside the flats covered by routine maintenance, such as replacement of floors, sanitary, painting and plastering of the walls, or the replacement of windows.

Are among the initiatives qualify for assistance in the works of installation of the building, which always serves the elimination of architectural barriers.

How to take advantage of the deduction: prior notification, bank and tax return

After summarizing the deduction and who can apply for such interventions, we seek to understand how to take advantage of the deduction for building renovations.

First, it turns out to be necessary to send to the Company the local health authority for the area, even before starting work, a communication (prior notification) by registered letter with acknowledgment of receipt (unless the type of intervention to exclude the obligations arising from the rules of law safety on construction sites).

Next, we must pay tax-deductible expenses by bank transfer or check, which must be the reason for payment, the tax code of the person who pays the tax code or VAT number of the payee.

In this regard, it is worth spending some further word: credit institutions have a special form for the conduct of bank profits to deduct for building renovations. That's why in many systems of Italian internet banking you can not make these transactions online: it is always best to contact the branch of your bank, and ask for clarification about these small but important step.

In addition to the above, we recall how to take advantage of the deduction, it is sufficient to indicate to the tax return cadastral data identifying the property and, in the event that the work has been carried out by the holder, even the details of registration of ' act which constitutes the title, and other data required for the control of the deduction.

We recall, in this regard, as following the approval of Decree Law 70 of 13 May 2011 has been abolished the requirement that the statement of sending jobs to the center of Pescara Revenue Agency.

However, it remains scheduled preservation, and the exhibition at the request of offices, administrative authorizations in relation to the type of work to be done (SCIA, DIA, CIL), the question of stacking for buildings not yet surveyed, receipts of payment of 'IMU (in the case where it is due), the shareholders' resolution approving the execution of the works and the table thousandth of a breakdown of expenditure on interventions concerning the common parts of residential buildings, and still received the payment of subsidies, the invoices and receipts tax on the actual costs incurred and prior information (if required).




Translated via software



Italian version of

Seguici su Facebook