Guide to Tax Deductions for Building Interventions: Everything You Need to Know About the 2018 Home Renovation Bonus, Furniture Bonus and Energy Efficiency Bonus
2018 Bonuses for Furniture, Energy Efficiency and Renovations
Are you about to renovate or modernize your home? Now is the perfect time to do it!
Let's discover together why in our 2018 Guide to Tax Deductions for building interventions and more.
The current Budget Law in force since January 1, 2018 has introduced significant changes regarding home improvement, energy efficiency, renovations, as well as for those who need to furnish their homes.
These are bonuses that can come in handy during a delicate moment like when you're about to modernize your home.
First of all, the key information:
The new law offers a Renovation Bonus 2018, with benefits provided and extended until December 31, 2018, concerning all those who need to carry out home renovations. This is an extension of an already approved law, and for this reason, it confirms some measures previously taken.
Home renovations and restructuring
For renovation work started from January 1st, therefore, it will be possible to benefit from a tax deduction of 50% of the expenses incurred, up to a maximum of €96,000 (from January 1st, 2019, the personal income tax deduction will return to 36% for expenses incurred up to the limit of €48,000).
For which interventions can you request the 2018 renovation bonus:
Ordinary maintenance, extraordinary maintenance, and restoration works: installation of elevators and safety stairs; toilets; replacement of external fixtures, windows, or shutters; renovation of stairs and ramps (also internal); energy-saving interventions; fences;
Extraordinary maintenance, restoration, and conservative restoration, building renovation carried out on individual residential properties of any cadastral category, including rural properties and annexes.
Energy efficiency and Green measures
As for energy efficiency, the 2018 Budget Law confirms:
the introduction of the so-called Green Bonus, a tax deduction of 36% for expenses up to €5,000 for the care of private gardens and terraces;
the Ecobonus, which applies a 50% tax rate (previously 65%) for the replacement of windows and fixtures, installation of solar shading, and for boiler installation. The Ecobonus has a maximum spending limit of €3,000 and can also be used by companies as well as all cadastral categories.
Bonus 2018 for furniture purchases
The tax deduction provides a 50% discount on the total expenditure for the purchase of furniture up to €10,000. Only taxpayers who, while carrying out renovation works, purchase furniture or large household appliances with a class rating of at least A or A+ can benefit from it.
Additionally, condominium Ecobonuses have been confirmed, allowing the possibility of transferring the credit of non-eligible condominiums to banks and credit institutions, up to a limit of 75%.
However, the so-called "furniture bonus for young couples" has not been extended, having expired in 2017 and no longer in effect in 2018.
How to request the bonus
Everyone can apply for the bonus, but to be eligible, one must have started renovation works from January 1, 2017 (or January 1, 2016 for purchases made in 2017).
The purchase of furniture, on the other hand, must take place during the year 2018. In case the furniture purchase occurred both in 2017 and 2018, one can still claim the IRPEF discount for the overall expenses not exceeding the total of 10,000 €.
Among the accepted payment methods to request the Bonus, only payments made by bank transfer or debit/credit card are allowed (bank checks or cash payments are not accepted).
The last thing to know: what documentation is required to be submitted along with the request for access to the 2018 Bonus? Here's the list:
- Proof of bank transfer
- Receipt of successful transaction (for payments by credit or debit card)
- Documentation of debit from the current account
- Purchase invoices for the goods.
Ready to start the works?
If you're considering doing renovation works at home, for maintenance, renovation, or to upgrade the furnishings, we at ISAProject provide consultation, services, products, and assistance.
From now on, for construction, design, and furnishing, you can rely on a single point of contact.
You have ISAProject: ideas, solutions, architecture.
