Mortgages for renovation: the tax authorities on the deductions due

Building renovation loan: the deduction for interest expense

To answer a taxpayer’s question is Tax Todayreiterating that, pursuant to art. 15, paragraph 1-ter of the TUIR, for mortgage loans contracted starting from 1998 for the construction and renovation of the main residence, an IRPEF deduction of 19% is due for the payment of interest expense, to be calculated on a maximum amount of 2,582 .28 euros.

With reference to the requirements and conditions for requesting the relief, as well as the deductibility limits, the Revenue Agency reminds you that:

• the mortgage contract must be signed in the previous 6 months o in the following 18 months
  at the beginning of the works;
• the mortgage contract must be stipulated by the person in possession of the real estate unit by way of ownership or other real right;
• the property being built or renovated must be used for habitual residence of the taxpayer
  or his family members.

Furthermore, the deduction on interest expense for the renovation loan is only available if you are in possession of a
qualifying qualification which shows that the authorization concerns the works indicated in the art. 3, paragraph 1, letter. d), of Presidential Decree 380/2001 (Consolidated Building Act).

In the absence of this document, the deduction is only possible if the taxpayer is in possession of similar statement signed by the manager of the competent municipal office.