Real Estate Agent fees deduction
individuals who have purchased a house as their main residence, with the intervention of a real estate broker recognized under law number 39 of 1989, are entitled to a 19 percent personal income tax deduction on the amounts paid.
The maximum amount of the tax discount is € 1,000.
The expenses for real estate brokerage can also be deducted with the tax return, as well as for the amounts relating to specialist, veterinary and other categories of visits.
To benefit from the tax reduction, it is necessary to follow the instructions for completing form 730/2021.
The indications of the Revenue Agency and the conditions established by Article 15 of the TUIR must be respected.
Deduction of real estate brokerage expenses up to € 1,000 in the 730/2021 model
Taxpayers who bought a home during 2020, as their main residence and through a real estate agency, are entitled to a 19 percent deduction from real estate brokerage fees.
The maximum limit of the tax discount is € 1,000.
The requirement to be met is precisely that of the main residence: it must be the property in which the taxpayer usually lives, with his family.
To verify this condition it is necessary alternatively:
- that the home is included in the personal data registers;
- that a self-certification is produced that the house is the main one. The term to be taken into consideration is the same as that identified for interest expense on home loans.
In ordinary cases, the deadline is established within the year preceding or following the date of stipulation of the loan agreement.
Tax Deduction | Intermediary Expenses
Who is entitled the deduction?
Buyers of the property are entitled to the deduction for real estate brokerage costs, in cases where the amount is indicated in the deed of sale of the same.
According to the provisions of Article 35, paragraph 22, of Legislative Decree no. 223 of 2006, the parties are obliged to produce a substitutive declaration of the deed of notoriety, indicating the methods of payment of the sum upon the sale of the property, even if subject to VAT.
Each party is obliged to declare the following:
- if you have made use of a mediator and, in the affirmative hypothesis, to provide the identification data of the owner, if a natural person, or the name, company name and identification data of the legal representative, if a person other than a natural person, or the non-legal representative mediator who worked for the same company;
- The tax code or VAT number;
- the registration number in the role of business agents in mediation and of the Chamber of Commerce, Industry, Crafts and Agriculture of reference for the owner or for the legal representative or mediator who worked for the same company;• the amount of expenditure incurred for this activity and the analytical methods of payment for the same;
The deduction must be divided between the co-owners, in the event that the house is purchased by more than one person.
You are not entitled to the benefit if the expenses are met in the interest of a dependent family member.
The seller is not entitled to the deduction, despite the fact that he may have incurred costs for the intermediation of a real estate agency.
Deduction of real estate brokerage expenses: the instructions for completing the 730/2021 form and the documents to be kept
To obtain the 19 percent personal income tax deduction on real estate brokerage expenses incurred in the year 2020, the maximum ceiling of which is 1,000 euros, taxpayers must follow the instructions for completing form 730/2021 of the Revenue Agency.
