Welcome to my “Selling a home within a year of purchase”.
Purchase first home and pre-existing rights on other "first home"
The law stipulates the requirements for accessing the first house of the non-ownership of other immovable property on the national territory for which it already benefits from such relief or similar. The requirement is set out in letter c), note II-bis, art.1, para., DPR 131/1986 (hereafter in the text: "Note II-bis"). Recall that DPR 131/1986 is the only text on the registration tax.
In fact, the letter c) provides that, in order to be able to benefit, the buyer must not "be entitled, even by quotas, also under the system of legal communion throughout the national territory of property rights, usufruct, use, dwelling and naked property on another home purchased by the same subject or spouse with the facilities "in question or other laws (cited in the full text of the letter, please refer to it); of the subsistence of the condition referred to in point c), the buyer must make a declaration in the acquirer.
The 2016 Stability Law (Article 1, co.55, L. 208/2015), adding paragraph 4-bis in the Note II-bis, provided that the new good can also be purchased, and therefore benefit of the allowance for the first house, if, within one year from the date of the act (of purchase), we sell the good that does not make us comply with the condition of Lett. c.
The question poses various questions; we mention here some of the Revenue Agency's responses.
Tax credit and repurchase first home
A question concerns the enjoyment of the tax credit: in fact, the law provides for the case of a new purchase of goods with the requirements of the first house within one year of the sale of another having the requirements of the first house, the possibility of enjoying a tax credit (Article 7, Law 448/1998).
Is it still possible to obtain a tax credit even if the purchase of the new good takes place before the sale of the prepaid good?
The Agency's answer (Circular 12E of 2016) is: yes, it can be availed. This is because the ratio of the reform of the legislation on the first home is to facilitate the replacement of goods with the requirements of the first home.
If the new purchase is subject to VAT
In Stability Law 2016, the new rule only mentions the tax register: does the forecast apply even if the new purchase is subject to VAT?
The Revenue Agency's reply (Circular 12E of 2016) is yes, as in the case of VAT-facilitated, the rule (point 21) of Part A of Table A annexed to D.P.R. n. 633 of 1972) expressly refers to the recurrence of the conditions set out in note II-bis.
The modification of the conditions set out in Note II-bis therefore also affects the application of the VAT-reduced rate of 4 percent.
If the new purchase is free of charge
Is the new rule facilitated even if the purchase of the new asset (with the buyer's commitment to sell by the year) is free of charge?
The answer from the Revenue Agency (Circular 12E of 2016) is yes since the rules on donation and succession (Articles 69, 3 and 4, Law 342/2000) expressly refers to the facilities referred to in Note II-bis.
Even in this case, therefore, the modification of the Note is also valid for acts free of charge. The act must result in the buyer's commitment to sell the asset prepaid to the law.
Purchases Before Changing the 2016 Stability Law
It may somehow benefit from the new rule (in the form of a refund or a tax credit) who in 2015, prior to the normative change in Note II-bis, purchased the asset without being able to benefit because it did not respect Latvian. c and then sold the good "indicted" in 2016, so within a year of the purchase and after the entry into force of the Stability Law?
The Revenue Agency's reply (Circular 12E of 2016) is no: the Stability Law entered into force on 1 January 2016 and can therefore only cover acts concluded after that date.
Stability Law 2016 and immovable property that does not benefit from the first house avenues
Among the other conditions stipulated by Presidential Decree 131/1986 there is the absence of immovable property rights in the municipality of residence: literally note b of note II-bis states that "in the acquirer the buyer declares that he is not exclusive owner or in communion with the spouse of the property rights, usufruct, use and dwelling of another home in the territory of the commune where the property to be purchased is situated. "
The hypothesis of the Stability Law 2016 also applies to the condition referred to in Latvian law. b? That is, you can buy a new home even if you do not respect the condition discuss in Latvian. b If the good "outlaws" resell within the year?
The law stipulates the requirements for accessing the first house of the non-ownership of other immovable property on the national territory for which it already benefits from such relief or similar. The requirement is set out in letter c), note II-bis, art.1, para., DPR 131/1986 (hereafter in the text: "Note II-bis"). Recall that DPR 131/1986 is the only text on the registration tax.
In fact, the letter c) provides that, in order to be able to benefit, the buyer must not "be entitled, even by quotas, also under the system of legal communion throughout the national territory of property rights, usufruct, use, dwelling and naked property on another home purchased by the same subject or spouse with the facilities "in question or other laws (cited in the full text of the letter, please refer to it); of the subsistence of the condition referred to in point c), the buyer must make a declaration in the acquirer.
The 2016 Stability Law (Article 1, co.55, L. 208/2015), adding paragraph 4-bis in the Note II-bis, provided that the new good can also be purchased, and therefore benefit of the allowance for the first house, if, within one year from the date of the act (of purchase), we sell the good that does not make us comply with the condition of Lett. c.
The question poses various questions; we mention here some of the Revenue Agency's responses.
Tax credit and repurchase first home
A question concerns the enjoyment of the tax credit: in fact, the law provides for the case of a new purchase of goods with the requirements of the first house within one year of the sale of another having the requirements of the first house, the possibility of enjoying a tax credit (Article 7, Law 448/1998).
Is it still possible to obtain a tax credit even if the purchase of the new good takes place before the sale of the prepaid good?
The Agency's answer (Circular 12E of 2016) is: yes, it can be availed. This is because the ratio of the reform of the legislation on the first home is to facilitate the replacement of goods with the requirements of the first home.
If the new purchase is subject to VAT
In Stability Law 2016, the new rule only mentions the tax register: does the forecast apply even if the new purchase is subject to VAT?
The Revenue Agency's reply (Circular 12E of 2016) is yes, as in the case of VAT-facilitated, the rule (point 21) of Part A of Table A annexed to D.P.R. n. 633 of 1972) expressly refers to the recurrence of the conditions set out in note II-bis.
The modification of the conditions set out in Note II-bis therefore also affects the application of the VAT-reduced rate of 4 percent.
If the new purchase is free of charge
Is the new rule facilitated even if the purchase of the new asset (with the buyer's commitment to sell by the year) is free of charge?
The answer from the Revenue Agency (Circular 12E of 2016) is yes since the rules on donation and succession (Articles 69, 3 and 4, Law 342/2000) expressly refers to the facilities referred to in Note II-bis.
Even in this case, therefore, the modification of the Note is also valid for acts free of charge. The act must result in the buyer's commitment to sell the asset prepaid to the law.
Purchases Before Changing the 2016 Stability Law
It may somehow benefit from the new rule (in the form of a refund or a tax credit) who in 2015, prior to the normative change in Note II-bis, purchased the asset without being able to benefit because it did not respect Latvian. c and then sold the good "indicted" in 2016, so within a year of the purchase and after the entry into force of the Stability Law?
The Revenue Agency's reply (Circular 12E of 2016) is no: the Stability Law entered into force on 1 January 2016 and can therefore only cover acts concluded after that date.
Stability Law 2016 and immovable property that does not benefit from the first house avenues
Among the other conditions stipulated by Presidential Decree 131/1986 there is the absence of immovable property rights in the municipality of residence: literally note b of note II-bis states that "in the acquirer the buyer declares that he is not exclusive owner or in communion with the spouse of the property rights, usufruct, use and dwelling of another home in the territory of the commune where the property to be purchased is situated. "
The hypothesis of the Stability Law 2016 also applies to the condition referred to in Latvian law. b? That is, you can buy a new home even if you do not respect the condition discuss in Latvian. b If the good "outlaws" resell within the year?
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