Furniture bonus 2021: for which purchases

Furniture bonus 2021: for which purchases is it possible to benefit from the transfer of credit? This article is a mini-guide on the 50% tax deduction for the 2021 furniture bonus in connection with a property renovation project.

The 2021 furniture bonus (kitchen, living room or other rooms in the house) is available for all purchases made in 2021. The bonus can only be requested by a person who is carrying out a building renovation project that began no earlier than 1 January 2020. Furthermore, the maximum expenditure budget must not exceed €16,000.

Here is all you need to know about the 2021 furniture bonus.

Furniture bonus 2021: definitive guide

One of the main questions that people ask about the furniture bonus 2021 is what purchases are eligible for the tax deduction. In this regard, we start by saying that purchases related to the furniture bonus 2021 can concern kitchens, wardrobes, beds, or even household appliances such as refrigerators, washing machines or dryers.

However, in order to obtain the tax deduction, certain specific conditions must be met. Let's find out all the technical aspects concerning this tax relief.

In general terms we can say that the 2021 furniture bonus consists in the possibility to deduct from the IRPEF 50 per cent of the expenses incurred for the purchase of a series of items related to a property renovation, and specifically:

• Large household appliances: refrigerators, freezers, washing machines, washer/dryers, dishwashers, cooking appliances (induction hobs, etc.), microwave ovens, electric stoves or electric heating appliances, electric radiators, fans and air conditioning appliances or systems
• New furniture: kitchens, wardrobes, beds, bookcases, chests of drawers, chairs, tables, desks, sofas, armchairs, bedside tables, mattresses, instruments and lighting equipment.

The following purchases are excluded from the 2021 furniture bonus tax deduction

• doors
• wall and floor coverings (e.g. parquet or laminate flooring)
• curtains and draperies

On the other hand, the tax deduction includes the costs of transporting and assembling the furniture purchased.

Furniture bonus 2021: necessary conditions

As stated in the previous paragraphs, in order to benefit from the tax deductions under the furniture bonus 2021, a number of specific conditions must be met. First of all, the furniture bonus 2021 must be requested by the person who is about to carry out a property renovation, which started no earlier than 1 January 2020.

For all purchases made during the year 2020 it will only be possible to benefit from the deduction if the renovation work began no earlier than 1 January 2019.

Regardless of the amount of expenses incurred for property renovations, the 50 per cent tax deduction must necessarily be calculated on a maximum amount of €16,000 or €10,000 for all purchases made by 31 December 2020.

The tax deduction will be divided into 10 annual instalments of the same amount and will be obtained by simply indicating the expenses incurred in one's income tax return (Form 730 or personal income form). Obviously, the deduction will be granted only to the natural or legal person who decides to carry out a building renovation. For example, if only one of the spouses pays for the renovation of a building, while the other spouse pays for the furnishings, neither spouse will receive the bonus for the purchase of furniture and household appliances.

How to get the 2021 furniture bonus

In order to obtain the 2021 furniture bonus, it is essential to carry out a building renovation, which may involve either an individual residential property unit or common parts of buildings (always exclusively residential). The deduction will also be available if the goods purchased will be used to furnish the property undergoing building renovation, or if the furniture or large household appliances purchased are intended to furnish the property, but the intervention is carried out on an appurtenance of the property itself (even if stacked independently).

The following is a summary of the respective building works covered by the 2021 furniture bonus:

• Extraordinary maintenance works: restoration, building renovation, conservation works
• Ordinary maintenance work: on individual units or flats (e.g. painting of walls and ceilings, replacement of floors and fixtures and plastering).
• Restoration or reconstruction of property damaged by external events (disasters), if a state of emergency has been declared
• Restoration or renovation works involving entire buildings, carried out and operated by construction or renovation companies, or by building cooperatives: the entities involved in these interventions will have to sell or assign the building, within 18 months from the end of the works.
• Ordinary maintenance, extraordinary maintenance, restoration or renovation of common parts of residential buildings. When interventions are carried out on common parts, the condominiums will be entitled to the deduction (each with their respective share). In this case, the bonus will not be granted if goods are purchased for one's own home.

Furthermore, interventions aimed at adopting measures to prevent the risk of illicit acts by third parties will not be included among the interventions that will entitle to the 2021 furniture bonus. On the other hand, the replacement of the boiler system is included among the extraordinary maintenance operations that allow the bonus and the related deduction to be used.

Furniture bonus 2021: how to pay for large household appliances

In order to benefit from the 2021 furniture bonus it is necessary to pay for furniture or appliances by bank transfer, debit card or credit card. Payment by bank cheque, cash or other means of payment is not permitted.

The bonus deduction will also be allowed if the furniture or appliances are purchased in instalments (financing).

The purchaser receiving the 2021 furniture bonus must keep two documents:

• Invoice for the purchase of the goods (showing the nature, quality and quantity of the goods)
• Proof of payment (receipt of bank transfer or transaction).