With regard to the discipline concerning the deduction of expenses for interventions of recovery of the building patrimony and energetic requalification of the buildings, the Revenue Agency, with the Reply of the June 10, 2020 n. 174 made following an appeal (available attached), examined the case of a taxpayer who sold the property before paying the costs for the renovation of the property itself.
The Agency specified that, the selling party, who do the payment for the expense renovation after the notarial deed, lose the title to take advantage of the deduction, no longer being the owner of the property bought and sold, subject of the restructuring works.
This causes two important ones consequences:
there loss of the right to enjoy the facility directly at the head of seller
there loss of the seller’s right to transfer the deduction of the expense all ‘buyer of the property.
Please remember that, the discipline relating to this type of tax relief is contained in theArt. 16-bis of the TUIRwhich states that:
- the deduction is for all taxpayers subject to personal income tax, resident or not in the territory of the State, who own or hold, on the basis of a suitable title, the properties subject to the interventions, provided that they bear the related costs;
the deduction is to be distributed in 10 equal annual installments, starting from the tax period in which the expense was incurred;
are deductible expenses incurred and actually remained dependent of taxpayers who own or hold, based on a eligible title, the property on which the interventions are carried out.
With reference to the last aspect reported, the Agency clarified that, with the words “expenses incurred“, You should refer to cash policy with the consequence that the deduction applies to expenditure actually “paid” by the taxpayer and remained against him.
On the basis of what has been said, in the case examined by the Agency, the right to deduct the expenses did not even arise in favor of the seller, as the same did not actually sustain and pay the expenses before proceeding with the sale of the property and therefore will not be able to enjoy the discount, let alone pass it on buyer that consequently it will not be able to take advantage of the deduction.