How to include renovation expenses in your tax return, the tax authorities respond

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Emma Potter

Undertaking a renovation can involve a number of significant expenses, but fortunately, Italian law provides tax breaks that can help reduce the financial burden.

A common question among taxpayers is when exactly these expenses can be deducted. Should you wait until the work is completed or can you start deducting expenses incurred during the relevant year?

Let’s find out together the answer provided by the Tax Office to a taxpayer on this crucial topic.

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The taxpayer’s question

A taxpayer asked:

“I started a renovation in 2023. Can I deduct the expenses incurred in 2023 already in the pre-filled 730 for 2024 or do I have to wait until the work is finished and then include the 2023 expenses in next year’s tax return along with those incurred in 2024?”

This question reflects a common doubt among many property owners who wish to benefit from the tax breaks provided for building renovations.

The Tax Office has clarified that, according to article 16-bis of the Tuir, the deduction for renovation costs is due during the period in which the expenses are incurred. This means that, by applying the cash criterion, it is not necessary to wait for the completion of the works to benefit from the deduction.

Therefore, the taxpayer can indicate the expenses incurred in 2023 in the tax return to be submitted in 2024, using the 730 or Redditi Pf form.

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Requirements and conditions for the deduction

It is important to underline that in order to benefit from the tax breaks, it is necessary to respect certain requirements and obligations provided by the legislation.

These include, among other things, the correct documentation of the expenses incurred and compliance with the procedures for requesting the deduction. Only in the presence of these requirements, the taxpayer will be able to benefit from the concessions provided for the recovery of the building heritage.

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Conclusion

In conclusion, those who started renovation work in 2023 can already deduct the expenses incurred in the same year in their 2024 tax return. It is not necessary to wait for the work to be completed, as long as all the conditions and requirements set out in current legislation are met. Do you have other questions about tax breaks for renovations? Continue reading to find out all the useful information.