When selling a property purchased with tax breaks “first house” before five years from purchase, doubts arise and the need for clarification. In a recent response published on FiscoOggi, the Revenue Agency provided an important clarification on the possibility of avoiding the forfeiture of tax benefits in the event that the taxpayer intends to reacquire not full ownership of a new home, but only a right of usufruct on it.
Let’s see in detail the answer and the conditions for maintaining the tax benefits.
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Reader’s question
The reader asks the following question:
“I have to sell the property purchased three years ago and for which I took advantage of the first home benefits. I know that to avoid having to repay the additional taxes due when the benefits cease, I must purchase another property within a year.
The question is whether this rule also applies if you decide to purchase not full ownership of a new home but only the right of usufruct on it.”
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The response of the Revenue Agency
The Revenue Agency clarifies that, based on current legislation, anyone who sells a property purchased with the “first home” benefits before five years of purchase loses the tax benefits enjoyed.
However, there is a possibility to avoid the forfeiture of the benefits: the purchase, within one year of the sale, of another property to be used as a main residence. This principle is regulated by paragraph 4 of Note II-bis (attached to article 1 of the Tariff, Part One, of Presidential Decree no. 131/1986).
As specified by the Agency, the purchase of the sole right of usufruct or habitation on a new property is not sufficient to avoid the forfeiture of the “first home” benefits. In fact, to satisfy the legal requirements and maintain the benefits obtained with the first purchase, it is necessary to acquire full ownership of the new property, and not a simple real right of enjoyment, such as usufruct.
In the event of the purchase of a real right such as usufruct, the taxpayer will be required to repay the additional taxes due, plus any penalties and interest, precisely because of the forfeiture of the first home concessions.
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Exception: free purchase within one year
However, the Revenue Agency highlights an exception. To avoid forfeiture of benefits, the free purchase of another property within one year of the sale of the main property is considered eligible.
This means that, in the presence of a donation, the taxpayer could maintain the tax benefits without having to purchase a new property for consideration. This clarification is based on resolution no. 49/2015 of the Agency.
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Purchase of usufruct and possibility of concessions on the new deed
Even if the taxpayer cannot avoid the forfeiture of the first home benefits by purchasing only a right of usufruct, he still has the possibility of requesting the “first home” tax breaks for the new purchase deed, provided that the requirements set out in Note II are respected. -bis.
This at least allows you to obtain some concessions on usufruct, although this does not prevent the forfeiture of the benefits relating to the first property.
This provision shows the importance of carefully evaluating each real estate transaction, especially in relation to specific benefits and requirements. Those in a similar situation should consider the option of purchasing full ownership of a property within a year of the sale to avoid repayment of the benefits, unless it is possible to obtain the property free of charge.