TAX CREDIT ON REACQUISITION
If you sell your home and buy a new one within one year, you enjoy a tax benefit: the tax credit, that is, a discount on the tax due. However, in order to receive a tax credit on the reacquisition of a primary-home you must meet the following requirements:
- The reacquistion must be within one year after the selling of the previously owned home.
- The previously owned home must have been purchased with the tax benefits of the "primary-home".
Primary-home "prima casa"
This last requirement is met, should the house being sold, have taken advantage at the time purchased, of the tax benefits regulated by law- that has been modified over time. You may not benefit, if it is your first time purchasing a home ( the house purchase does not follow a house sale ), or if you sell a home which had not been purchased under the tax benefits. Examples of this are: a bequeathed house, the selling of a house which had been purchased without any tax benefits or had been purchased before the introduction of such primary home tax benefits.
The tax credit is equivalent to the previously paid registration fee or value-added tax of the previously acquired home ( sold within one year ), but may not exceed in value the due registration fee or value-added tax for the new acquisition.
How to use it
The tax credit, which is not subject to reimbursement, may be used in the following manner:
- it may be deducted from the registration fees, due upon closure of an acquisition transaction, modified by the tax benefit.
- it may be deducted from the due taxes ( registration fees and property transfer fees ) and/or the taxes on contracts and registrations of inheritances and life-time gifts presented after the receipt of the credit.
- it may be deducted from the personal income tax ( IRPEF ) based on the tax declaration, to be presented after the acquisition act.
- it may be used to off set.