Ceiling on spending and not on deductions
Speaking of budget law, we generally talk about “cutting deductions” but this is a generic expression that does not correspond to the reality of the facts and generates confusion. What the rules have introduced, in fact, is a maximum limit on the amount of deductible expenseswhich means that the amount of allowable deductions varies depending on the deduction rate applicable to the expenses themselves, and cannot be fixed in advance.
As provided for by the new article 16-ter introduced into the TUIR by the measure, from now on for subjects who exceed the pre-established income ceilings the charges and expenses considered as a whole are allowed as a deduction up to an amount calculated by multiplying the predetermined basic amount corresponding to the income with the coefficient relating to the number of fiscally dependent children. A maximum amount is therefore set which changes depending on the family burden.
Income and family ratio
The income thresholds above which the tax is triggered and the deductible sums are:
- total income over 75,000 euros with a maximum amount of expenses of 14,000 euros;
- total income over 100,000 euros with a maximum amount of expenses of 8,000 euros.
Be careful, however, the one indicated is precisely the maximum limit which is reached only if the taxpayer has three dependent children, or at least one child with a disability.
In fact, the rules establish that the effective maximum deductible amount must be multiplied by the coefficients relating to the taxpayer’s family situation and which are equal to:
- 0.5 if there are no fiscally dependent children
- 0.7 with a fiscally dependent child
- 0.85 with two fiscally dependent children
- 1 with three fiscally dependent children or at least one child with a serious disability pursuant to art. 3 of law 104/1992
Here is the table with the counts
| Income between 75,000 and 100,000 euros | Amount of deductible expenses |
| without dependent children | 7,000 euros |
| with a dependent child | 9,800 euros |
| with two dependent children | 11,900 euros |
| with three children or with a child with a disability | 14,000 euros |
| Income over 100,000 euros | Amount of deductible expenses |
| without dependent children | 4,000 euros |
| with a dependent child | 5,600 euros |
| with two dependent children | 6,800 euros |
| with three children or with a child with a disability | 8,000 euros |
Expenses excluded from the calculation
From the maximum ceiling of the deductible sums, those relating to:
- healthcare costs;
- investments in innovative start-ups and innovative small and medium-sized enterprises;
- expenses for first home mortgages taken out until 31 December 2024;
- policies subscribed until 31 December 2024;
- deductible expenses pursuant to art. 16-bis of the TUIR and other similar provisions, supported until 31 December 2024.
The last item therefore includes all the expenses on the house, but also Ecobonus, Superbonus and Barrier Bonus, given that these are all the expenses for which a deduction in annual installments is foreseen.
The weight of the installments for expenses from 2025 onwards
Given therefore that for the costs of redevelopment of the building stock incurred up to last year there will be no cleaverlet’s now see how the new rules apply to expenses incurred from January of this year onwards in light of what the text provides. The provisions therefore establish that “for the purposes of calculating the overall amount of charges and expenses, for deductible expenses pursuant to article 16-bis or other regulatory provisions, the deduction of which is spread over several years, the expenditure installments relating to each year”.
This essentially means that anyone who has to spend one in 2025 sum equal to 50,000 euros to renovate your home you would have an annual expense amount on which to calculate the deduction equal to 5,000 eurosand should consider this amount when calculating the amount of expenses eligible for deduction.
A practical example
In detail considering a taxpayer with income over 75,000 and two childrenthen with deductible expenses up to 11,900 euros per yearonce the annual installment of 5,000 euros has been removed, there would be room to deduct other 6,900 euros of expenses.
A taxpayer without dependent children and with income over 100,000 euroswould instead have only one margin of another 3,000 eurosconsidering that its maximum annual amount of deductible expenses is set at 8,000 euros.
The indication does not change if the expense is deductible at 50% or 36% since, as mentioned, it is the expense that counts and not the deduction rate.
