Mortgage to renovate the house or build it

Home refurbishing it is a considerable expense and between estimates, interventions, expert advice and unforeseen events that may occur, the bill could rise beyond expectations. Those who do not have the necessary liquidity can decide to take out an ad hoc mortgage and then download the interest and charges in the tax return.

It is possible to bring 19% of interest is deducted paid on mortgage loans stipulated for renovation or construction of the main residence, indicating the amount in the annual income tax return. L’maximum amount on which to calculate the deduction is equal to 2.582,25 euro.

The main residence is the one in which the taxpayer and / or his family members usually reside. To this end, the results of the personal registers or the self-certification with which the taxpayer can also certify that he habitually resides in a place other than that indicated in the personal registers are relevant.

Tax deduction for restructuring loans

The deduction is up to the taxpayer who stipulates the loan agreement and who will have possession of the real estate unit, by way of property or other real right, and in which he or his family members intend to habitually reside. The deduction is recognized in the presence of a municipal authorization provision from which it appears that the authorization concerns the works indicated in article 3, paragraph 1 – letter d), of Presidential Decree 380/2001.

To have the benefit, the taxpayer must be in possession of the following documents:

  • receipts for payment of interest expense
  • copy of the loan agreement, showing that it was stipulated to carry out the construction or renovation works
  • copy of the documentation proving the actual incurring of the costs of carrying out the interventions themselves.

It is possible to request the deduction if the following conditions are met:

  • the loan must be stipulated in the 6 months prior to the start date of the works or in the following 18 months
  • the property must be used as a main residence within 6 months of the completion of the construction works
  • the contract of mutual it must be stipulated by the person who will be in possession of the real estate unit by way of ownership or other real right.

It should be noted that it is possible to simultaneously take advantage of the deduction of interest for mortgage loans contracted for the building renovation of the main house and of the 50% deduction for the expenses incurred for the property renovation.

Mortgages for the construction of a main residence

The 19% tax deduction is also due for the construction of the main house, understood as an intervention carried out in compliance with the municipal provision authorizing a new construction. AND it is necessary to allocate the property as a main residence within 6 months of the completion of the construction works.

The right to deduction does not cease if – due to delays attributable exclusively to the municipal administration in issuing the administrative qualifications required by current building legislation – the construction works have not started in the 6 months prior or in the 18 months following the date of signing the contract loan or have not been completed within the terms indicated in the administrative provision that authorized the construction.

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The post Mortgage to renovate the house or build it appeared first on Newsy Today.

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