Italy Tax Agency Clarifies Deduction of Expenses for Purchase of Property in Renovated Building

The Italian Revenue Agency Nov. 21 posted online Letter No. 565/2022, clarifying the deduction of expenses for the purchase of a residence within a renovated building. The taxpayer purchased a property in Italy in 2020, which was part of a larger building undergoing renovation to convert from non-residential to residential use. The taxpayer sought clarification as to the availability of the expense deduction for 25 percent of the purchase cost, applicable to building recovery and energy redevelopment expenses. The tax agency clarified that: 1) the taxpayer qualifies for the expense deduction for the 2020 purchase, even though the building renovation ...