Deductions on condominium expenses: how they are split

Tax deductions on works carried out on the common parts are due to each owner in proportion to the share of expense they actually incurred. The link between the condominium's total expense and the individual's deduction runs through the thousandths (millesimi) split and the actual payment of instalments. The manager has the task of calculating each owner's share, certifying it and reporting it to the tax authorities, so that the owner can claim it in their own return.

The allocation criterion: the thousandths

Expenses for the conservation and enjoyment of the common parts are split, unless otherwise agreed, in proportion to the value of each owner's property, under Article 1123 of the Italian Civil Code, that is on the basis of thousandths. Some expenses follow specific tables: the maintenance of stairs and lifts is split half according to value and half in proportion to floor height under Article 1124, while the expenses of a roof terrace in exclusive use follow Article 1126.

The deduction follows the same split as the expense: if an owner bears 30 thousandths of a works project, their deductible share equals 30 thousandths of the total eligible expense. Applying the correct table is therefore the first prerequisite for an accurate deduction.

Payment counts, not the resolution

For individuals the deduction is due under the cash criterion: what matters is the year in which the expense was actually paid. For works on the common parts, reference is made to the moment the condominium paid the supplier, but the share is deductible for the individual owner to the extent that they paid their part.

A practical rule follows: the owner who has settled the instalments relating to the works may deduct their share; the one who has not paid cannot do so for the unpaid part. The manager must therefore keep track, owner by owner, of how much has actually been collected against how much has been allocated.

Arrears and the deduction

An owner's arrears directly affect their deduction. If, at year end, the share has not been paid, that portion is not treated as incurred and is not deductible in that year. The owner may eventually recover it in the year they settle, provided the conditions of the benefit still apply.

To manage this dynamic correctly, the manager must precisely distinguish the instalments referring to subsidised works from ordinary management instalments, and allocate collections consistently. An approximate allocation risks attributing deductions that are not due or penalising those who actually paid.

Certifying the expense to the owner

The manager issues each owner a certification or statement of the deductible expense share referred to them. This document lets the owner complete their own return or verify the data pre-loaded in the pre-filled return. The certification must state the intervention, the total expense, the owner's thousandths share and the part actually paid.

The same data flow into the electronic communication that the manager sends the Revenue Agency by 16 March to feed the pre-filled return. Consistency between the certification to the owner and the communication to the tax authorities is essential.

The documents to keep

For the deduction to hold up in any audit, the condominium must keep orderly documentation. In particular:

• the suppliers' invoices made out to the condominium;
• the receipts of the talking transfers with which the condominium paid the subsidised works;
• the meeting resolutions that approved the works and the related expense;
• the schedule of the thousandths split of expenses;
• the evidence of instalment payments by individual owners.

These documents are the proof of the right to the deduction and must be kept available for the entire period during which the benefit may be checked.

Keeping expense, shares and payments together

The complexity comes from having to link three different levels: the eligible expense, the thousandths split and the actual collection of instalments. Managing these elements by hand, on separate sheets, is the main cause of wrong deductions. AmministraPro links each subsidised intervention to the thousandths table, calculates each owner's share, tracks actual payments and produces certifications consistent with the pre-filled communication. See the features on /funzioni and the plans on /prezzi.