First home bonus and tax breaks: what it consists of and how it works

When it comes to tax breaks on the purchase of properties, one cannot but think of the first home bonus, certainly the most used by taxpayers but also the most risky. In fact, those who do not comply to the letter with the strict conditions imposed by the law, remember laleggepertutti.it, risk not only having to pay the State the taxes that were paid at the time of the deed but also to pay a penalty equal to 30% of this amount. It is therefore good to know how the tax breaks on the purchase of the first home work, what are the rights of the buyer and the answers to the main issues related to it. WHAT IS THE FIRST HOME BONUS? The first home bonus allows buyers to save on taxes to be paid to the notary (who in turn pays them to the State). ‘VAT drops from 10% to 4%; the mortgage and land registry tax are fixed at 200 euros each (instead of being 2% and 1% respectively); – for those who buy from private individuals, the registration tax drops from 9% to 2%; the mortgage and cadastral tax are fixed amounts of 50 euros each (instead of being, also in this case, equal to 2% and 1%). CONDITIONS TO HAVE THE PRIMA CASAVI BONUS There are a series of conditions to be respected in order to obtain the tax advantage on the purchase of the house. Here they are: – the buyer must establish his residence in the municipality where the property to be purchased is located; however, it can do so within 18 months of the purchase deed. Alternatively, the property can be located at the taxpayer’s workplace; – the buyer must not be the sole owner or in communion with the spouse of the rights of ownership, usufruct, use and residence of another home located in the territory of the Municipality where the property to be purchased is located. Otherwise, this property must be transferred (sold or donated) before the new purchase; – the buyer must not be the owner, not even for shares, even under a legal community regime throughout the national territory of the rights of ownership, usufruct, use , home and bare ownership on another home purchased with the first home bonus. Otherwise, there is up to 1 year from the deed to make this transfer; – the property must not be registered in categories A / 1, A / 8 or A / 9; – the property purchased with the bonus before the house must not be sold (donated or sold) before 5 years from the deed unless, within 1 year from the deed, another property is purchased to be used as a first home. WHEN IS IT POSSIBLE TO OBTAIN THE FIRST HOME BENEFITS? The first home bonus described above can be requested in three cases: – purchase of the home; – inheritance in the property (think of the grandson who inherits the grandfather’s house); – donation of the property (think of the daughter who receives her home from her mother as a donation). IS IT POSSIBLE TO DONATE THE FIRST HOUSE BEFORE 5 YEARS? According to the Supreme Court, in terms of tax relief on the first house, the donation of the property before the expiration of five years from the date of purchase of the same determines the revocation of the tax benefit; the subsequent termination of the donation contract is not relevant, the effects of which are limited to the relationship between the parties, with the exception of the case in which the donation is the implementation of the separation or divorce agreements between spouses. In this case, it is possible to donate the house to the ex or transfer one’s share of ownership.According to the Supreme Court, the taxpayer who, after purchasing the property, agrees to dissolve a donation, made before the purchase, concerning another property located in the same Municipality, since, at the time of the purchase, it is no longer the owner of the donated property and, therefore, does not make any false declaration on the existence of the foreseen condition From law. CAN YOU CHANGE THE DESTINATION OF THE PROPERTY PURCHASED WITH THE FIRST HOME BONUS? According to the Supreme Court, whoever has an apartment and wants to buy another one by taking advantage of the tax breaks again can do so if he transforms the first into an office. Basically, with the change of intended use you can have the first home bonus for the second time and without the need to sell the previous property. It does not matter, therefore, that the change in the intended use occurs only to dribble the legislation on tax concessions. So much so that, after the purchase of the second property, the taxpayer could again change the intended use of the first from office to home and thus – after the deed already completed – be the owner of two houses located in the same Municipality. ! FIRST HOME BONUS TO WHO OWNER OF ANOTHER HOUSE RECEIVED AS A DONATION Whoever receives a home as a donation and uses the first home bonus there, can buy another one by taking advantage of the same facility again. Second, in fact, the Revenue Agency is not necessary – in order to benefit again from the so-called first home concessions – to sell the property previously received as a donation using the “same” benefits. In this regard, the financial administration circulars stated that “in the event that the beneficiary is already the owner of an asset purchased by inheritance or donation, enjoying the first home benefits, it is possible to request concessions for the purchase for consideration of a another property, as long as this is located in another municipality ». FIRST HOME BONUS TO THOSE OWNER OF ANOTHER HOME RECEIVED IN INHERITANCE Those who inherit a home and, there, take advantage of the first home bonus, can buy a second home using the same facility. The conclusion is identical to that of the donation seen in the previous paragraph. THE REQUEST FOR TAX BENEFITS IS IRREVOCABLE According to the Supreme Court, the declaration of wanting to benefit from the first home benefits is irrevocable. Therefore, the taxpayer cannot benefit from the more favorable first home regime after renouncing the previous purchase, which is also facilitated. TAX BENEFIT ON THE PURCHASE OF FIRST HOUSE IN FAVOR OF MINORS The tax advantage on the purchase of the first home is also due to the minor even if the parents are the owners of another home purchased with the same benefits in the same Municipality. The right of legal usufruct of the “parents exercising parental responsibility” over their children’s assets until they reach the age of majority, as required by law, is not an obstacle. parents, who previously benefited from the first home facility on their own, the latter may be limited to the bare property purchased for the minor. In summary, the usufruct will discount ordinary taxation. RENUNCIATION OF THE INHERITANCE OF THE SPOUSE AND REQUEST FOR BENEFITS The surviving spouse who renounces the inheritance still has the right to live in the marital home. Consequently, the surviving spouse will be entitled to claim first home benefits. PROPERTY UNDER CONSTRUCTION The first home concessions are also due for the transfer of a property under construction «which presents, albeit in progress, the characteristics of a non-luxury home. These are properties under construction which, when completed, are attributable to a cadastral category other than A / 1, A / 8, A / 9. The request for concessions, however, cannot be reiterated, regardless of the registration or not of the property for which it was formulated, unless the latter is sold within one year of the new purchase, thus respecting the commitment to be assumed. in progress “. CADASTRAL CLASSIFICATION According to the tax authorities, the so-called first home benefits cannot be recognized with reference to the appurtenances stacked at the time of purchase in category D / 10 (buildings for productive functions connected to agricultural activities), as only the appurtenances classified or Classifiable, at the time of signing the deed of purchase, in the cadastral categories C / 2, C / 6 and C / 7. On the other hand, you can benefit from the first home facilitations for the purchase of a real estate unit classified in the cadastral category C / 2, but urbanistically undergoing restructuring with change of destination to residential building on the basis of a legitimate building title. MINIMUM PERIOD OF RESIDENCE IN THE MUNICIPALITY We have said that the condition for obtaining the first home bonus is to transfer residence within 18 months of purchase. property purchased with first home benefits. The Supreme Court confirmed this orientation, ruling that the requisite necessary to benefit from the concession is perfected if the taxpayer, at the time of the deed or within the following 18 months, is resident in the Municipality where the property purchased is located. Therefore, any subsequent transfer of the residence itself remains irrelevant, not included among the reasons for revocation of the benefit, which are to be considered mandatory and, by their nature, not subject to extensive or analogical interpretation. [10]. SALE OF A SHARE OF THE HOUSE The sale or donation of the house purchased with the bonus, before 5 years from the purchase determines the forfeiture of the bonus and the penalties of 30% (except for the hypothesis of repurchase within the year of another The transfer, even if partial, of the acquired rights produces a similar effect, with a forfeiture, however, limited to the part of the price corresponding to the partial right transferred. with reference to the purchase of a share of a house, in the same way it must be understood that the sale of a share or a part of it determines the forfeiture of the share or portion of the property sold. . According to the Court of Cassation, the rule on the first home does not include the renunciation of usufruct, which cannot be qualified as translational, in the proper sense of the term, producing – in itself – the extinction of the right and the re-expansion of full ownership. FIRST HOME DONATION WITHIN 1 YEAR In order not to forfeit the first home bonus, in case of transfer before 5 years, it is necessary to purchase another one within 1 year of the transfer. According to the Supreme Court, it is also sufficient that the new purchase be made free of charge, ie by donation. The jurisprudential orientation has prompted the Revenue Agency to review the previous position and to share the interpretation most favorable to the taxpayer.