Deduction for renovation costs
Question: In 2014, I carried out renovation work on a property I owned (and therefore benefited from the Renovation Costs Deduction ), for which I was also benefiting from the related tax deduction for building restoration. In September 2016, I sold the aforementioned property. Since nothing was specified in the sales contract, I am wondering whether this deduction is the responsibility of the seller or the buyer.
Answer:
If the property undergoing renovation work is sold before the entire period for benefiting from the tax relief for renovation expenses has elapsed , the right to the unused portion of the tax relief is transferred, unless otherwise agreed by the parties, to the purchaser of the property (if a natural person). Essentially, in the event of a sale and, more generally, a transfer by deed between living persons, the seller has the option of continuing to benefit from the unused tax relief or transferring the right to the purchaser (natural person) of the property.
However, in the absence of specific indications in the deed of sale, the benefit is automatically transferred to the property buyer. For those wishing to learn more about how to properly manage tax incentives when selling multiple properties, it’s helpful to consult our guide on tax deductions for second homes . For complete regulatory references and interpretative circulars, please visit the dedicated section of the Italian Revenue Agency .