Business · Economy · 6 hrs ago
Who gets renovation tax deductions after a condominium home sale
A condominium in Italy set aside money for future repairs, then decided to use it to replace the building’s roof.
One owner sold an apartment before the roof work was approved, and the new owner later took part in the decision.
The key point is when the condominium pays for the work, not simply who originally paid into the fund.
If the payment is made before the sale, the seller who paid their share can claim the deductions; if the fund is still unused at the sale, the buyer can claim deductions once it is used.
The seller and buyer can agree in the sale deed who gets any deductions already being claimed, and the condominium administrator should follow that agreement.
The administrator must provide the relevant tax certification, so the deed should clearly record any agreement about the deductions.
An unused condominium fund for future work generally follows the property when an apartment is sold and is not repaid to the seller.
If renovation work and payments were decided before the sale, the tax deduction usually goes to the person who paid their share before the deed of sale.
If the fund is still unused when ownership changes, the buyer can claim deductions after it is used to pay for the work.
The seller and buyer can agree in the deed who will receive deductions that are already being claimed annually.
The condominium administrator must certify the deductions according to the payment timing and any agreement in the deed.
- Who
- The seller and buyer of a condominium apartment, and the condominium administrator.
- What
- The issue is who can claim tax deductions for roof renovation paid for using a condominium fund.
- When
- The guidance was published on October 12, 2026. The deduction entitlement depends on when the work is paid for and when the sale takes place.
- Where
- In a condominium; the country is not stated.
- Why
- The apartment was sold after a fund for future expenses had been set up, and the condominium later decided to use it for roof work eligible for a 50% tax bonus.
This story does not have two clearly opposing sides.
The fund follows the property and therefore is not returned to the seller when ownership is transferred.
When the fund is still unused but only set aside, the buyer will have their deductions after it is used.
A fund for future expenses was set up, without specific final approval.
The condominium decided, with the new buyer's vote, to use the fund to redo the roof and claim a 50% tax bonus.
The administrator determines who is entitled to the deduction for each year, based on the payment timing and any agreement in the deed.
- Tax bonus
- 50% for the roof work
- Unused fund
- Follows the property and is not returned to the seller
- Deduction period
- Ten years when the seller's share was paid before the deed of sale
- Relevant rulings
- Revenue Agency circulars 95/E/2000 and 19/E/2012
- Court ruling
- Cassation judgment 22343/2017
Sources
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