When it comes to real estate, renovations and personal income tax deductions, there is no shortage of questions about how to best manage the tax benefits in the event of ownership changes. The question becomes particularly interesting if we talk about usufruct: how to manage the residual installments of Irpef deductions in the case of free concession of usufruct of a property?
The response from the Revenue Agency, published on the site TaxTodayclarifies a crucial aspect of this situation.
Let’s find out the details together: who is entitled to deductions? Do they remain with the naked owner or do they pass to the usufructuary?
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The reader’s question: free usufruct
The question posed by a taxpayer and published on the portal TaxToday represents a common but at the same time complex situation, which requires a clear interpretation of the tax legislation.
The reader asks:
“If I grant free use of a property on which I have carried out renovation work and for which I am taking advantage of Irpef deductions, can I, as the bare owner, keep the remaining installments of deduction or will they go to the usufructuary?”
This question underlines a fundamental aspect of real estate management: the relationship between the right of usufruct and the ownership of tax breaks. Granting usufruct free of charge, in fact, means transferring the right to enjoy and use the property to another person, while maintaining bare ownership.
This situation can generate doubts, especially when the owner has carried out renovation works and benefits from tax deductions that are still ongoing. Who has the right to continue using it?
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The response of the Revenue Agency
The Revenue Agency clarifies that, when a right of usufruct is established on a property, whether for a fee or free of charge, the residual Irpef deduction quotas for renovation works they remain with the naked owner and are not transferred to the usufructuary. This principle derives from the current tax legislation (article 16-bis, paragraph 8, of the TUIR), which provides for the transfer of benefits only in the case of sale or donation of the property.
The reasoning is based on the fact that usufruct, while giving the usufructuary the right to enjoy the property, does not involve the transfer of ownership. The deduction, therefore, remains linked to the original owner, i.e. the bare owner.
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The exceptions to the rule
A different case emerges when the property is sold and at the same time the right of usufruct is established. In this scenario, the deduction quotas not yet used by the seller they transfer to the new naked owneras it is the latter who takes ownership of the property.
This exception is a further confirmation of the principle according to which deductions follow the ownership of the real right on the property.
