When you decide to sell a property purchased with the “first home” tax breaks and buy a new home, it is natural to ask yourself whether the tax credit due for the repurchase of the first home is applicable even if the new home is purchased before the sale of the previous property.
In this regard, a reader asked this question to the Revenue Agency via the FiscoOggi website.
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Reader’s question
The reader’s question touches on an important and complex aspect of the tax legislation on first home incentives. Generally, the tax credit is recognized for those who sell a property purchased with the benefits and subsequently purchase another.
But what happens if the times don’t coincide perfectly, and those who want to move house find themselves needing to buy a new house before being able to sell the previous one?
The question:
“Is it possible to get the tax credit for the repurchase of the first home if you buy the new home before selling the property already owned and purchased with the first home benefits?”
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The response of the Revenue Agency
The Revenue Agency responded positively, confirming that the tax credit can also be applied in this case, provided that the conditions established by law are respected.
In fact, Italian legislation, specifically article 7 of law no. 448/1998, provides that anyone who sells a home purchased with tax breaks “first house” and, within a year, buys another one, can benefit from a tax credit up to the amount of the registration tax or VAT paid at the time of the first subsidized purchase.
However, it is important to note that the credit amount can never exceed the stamp duty or VAT due on the second purchase.
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The legislation and the 2015 amendments
The possibility of benefiting from the tax credit for the repurchase of the first home has also been extended in cases where the taxpayer purchases the new home before having sold the previous one, thanks to law no. 208 of 2015, article 1, paragraph 55.
This regulatory update, also confirmed by circular no. 12/2016, simplified the use of the bonus, allowing those who wish to move house to purchase a new home with greater temporal flexibility.
It is essential to remember that the tax credit is not available to anyone who, for any reason, cannot benefit from the reduced rates of registration tax or VAT. In fact, if the taxpayer loses the benefit of the reduced rate, the right to the tax credit also expires.
This detail is fundamental, as it requires taxpayers to ensure that they comply with all the conditions necessary to access these benefits, thus avoiding unpleasant surprises.
