If today home refurbishing costs less thanks to the possibility of enjoying the personal income tax deduction of 50% (cd 50% house bonus), from next year 2022 there may no longer be the same convenience. In fact, if the legislator does not intervene within 5 months, the risk of waiting for the work to start next year could have negative consequences.
Let’s see why.
Home renovation in 2021: 50% deduction
To renovate the house, the legislator recognizes one personal income tax deduction to the extent of 50% of the expenditure incurred. The tax relief is applied to one maximum expenditure of 96,000 euros per real estate unit, to be enjoyed in 10 annual installments of the same amount.
For the expenses incurred in 2020 and 2021, the beneficiary will be able to opt for:
- it discount on invoice by the same company that carries out the work, which then recovers the amount in the form of a tax credit that can be used in compensation or that can be transferred to third parties (including credit and financial institutions)
- or the credit assignment to third parties, including the company carrying out the work and including credit and financial institutions. The transferee (i.e. the recipient of the credit) can use it as compensation or assign it further.
We remind you that in order to enjoy the 50% home bonus it is necessary that the property object of the works is “existing” and that it is owned on the basis of a suitable title (property, usufruct, lease, lease, loan, etc.).
Disabled assistance deduction: indication in the tax return
The house bonus in question was born as tax deduction of 36% to be applied on a maximum limit of 48.000 euro.
However, it starts from the expenses incurred from 26 June 2012, the percentage is raised to 50% and the maximum spending limit to 96,000 euros.
This increase was then maintained year by year with a specific rule included in the respective budget laws, up to the last extension for expenses referring to the tax year 2021.
Therefore, this means that if the legislator does not intervene between now and the end of the year, the deduction percentage will drop from 50% to 36% as will the spending limit from 96,000 euros to 48,000 euros. Therefore, from next year renovating the house could become more onerous as you will have to count on a less substantial deduction.
Furthermore, it is necessary to understand whether the possibility of opting for the discount on the invoice or credit transfer will also be allowed for 2022 expenses.
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