Did you know that condo fees can be tax-deductible? Read this article to learn about condo fee tax deductions and how to claim them.
Which condo fees are tax-deductible?
It is possible to deduct condo fees for work carried out on the building’s common areas, with percentages that may vary according to annual tax regulations. Here are some deductible interventions:
- facade renovation work;
- energy efficiency upgrades;
- waterproofing of exposed areas (such as balconies or roofs);
- repair, replacement, or simple routine maintenance of the building’s systems and common areas;
- renovation and safety upgrades for stairs and elevators;
- building renovation work;
- restoration to preserve parts subject to decay.
How to claim condo fees
To request a partial deduction for 2022 expenses, simply fill out this year’s 730 form with the expenses incurred in 2022, entering them in “Section E – Charges and expenses.” However, the building manager must report them to the Agenzia delle Entrate (Revenue Agency) via a document detailing the individual interventions and the relative shares attributed to each condo owner. The document must be sent exclusively electronically.
Subsequently, the Revenue Agency will include the eligible deductions in the individual’s pre-filled 730 form.
Who can benefit from condo fee tax deductions?
Property owners have the right to benefit from deductions on condo fees in proportion to the shares expressed in the millesimal tables. Even those who are self-employed and have a home office can deduct 50% of condo fees, utility bills, and rent, but only if they fall under the ordinary tax regime and not the flat-rate (forfettario) scheme.
Benefits can be accessed once the expenses have been paid by the building manager, with payment completed within the year and by the deadline for filing the tax return. In general, it is possible to benefit from condo fee deductions over a period of ten years.
