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Tax deductions and change of ownership: what happens

What happens to tax deductions for building renovations (50%), for energy savings (65%) and for mobile bonuses when the ownership of a property changes? Are they lost, remain with the old owner or pass to the new one?

We try to clarify all doubts.

When the property is sold or transferred by deed before the end of the period for benefiting from the subsidy, the right to the remaining shares of the tax benefit is transferred, unless otherwise agreed between the parties, to the purchaser of the real estate unit.

This means that, in the absence of specific indications in the deed of sale, the deduction passes directly to the purchaser of the property.

Let's take an example. The initial owner performs some work on the building and begins to benefit from the tax deduction for building renovations.

The legislation provides that the benefit is divided into annual installments for the duration of 10 years.

If hypothetically after 4 years that benefits from the tax deduction (and therefore the first 4 shares) the owner of the property decides to sell and in the deed of sale there are no indications concerning the deductions in progress, the tax advantage will automatically pass to the buyer.

The latter can then benefit from starting from the fifth installment, up to the tenth. The number and the single and total amount of the installments will remain unchanged, only the beneficiary will change, which until the deed will be the old owner, while subsequently the deed will be the buyer / new owner.

However, the owner and the buyer can agree otherwise and specify their decision in the act. Therefore, the parties are free to decide whether the remaining shares of the deduction will go to the old owner or move to the new one.

If they decide to leave it to the old owner it becomes very important to clarify it in the act. In this case the old owner will spend all the shares of the tax deduction: those he has already benefited from and the remaining ones.

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Davide Rigatti

Phone: 040 97 76 352
E-Mail: [email protected]
Via Diaz 19/1, 34144 - Trieste

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