Facade bonus in a condominium: accounting

Allocating the cost: which ownership shares to use

Facade work concerns a common part of the building under Article 1117 of the Italian Civil Code, so the cost is normally split according to general ownership shares, unless the condominium bylaws or a specific allocation table set different criteria for elements that also serve as covering or finishing attributable to individual units, such as projecting balconies finished together with the facade.

The assembly must approve the works with the majority required by Article 1136 of the Civil Code for extraordinary maintenance of common parts, and the minutes must clearly state the total cost, the ownership shares applied, and whether the cost will be paid in installments.

When a building mixes different uses, such as ground floor shops with a separate entrance, check whether the bylaws exclude those units from the allocation for facade elements that do not concern them: a mistake here creates disputes and can block the tax deduction for an owner wrongly included or excluded.

The dedicated works fund: why it should exist before work starts

For work that qualifies for a significant tax deduction, the building manager should always set up a special fund under Article 1135 of the Civil Code, kept separate from ordinary management, paid in by owners before work begins or according to the progress schedule agreed with the contractor.

Keeping the works fund separate makes it possible to produce, at any time, a clear and verifiable statement: how much each owner has paid in, how much has been paid to the contractor and to professionals, and what balance remains. This traceability is what later allows the manager to certify to each owner the exact share of cost actually incurred and eligible for deduction.

A well kept works fund also avoids mixing traceable transfers for subsidized work with ordinary management expenses: blending the two makes it much harder, months later, to reconstruct which payment relates to which intervention.

Traceable bank transfers and payment tracking

Payments for work eligible for a deduction must be made using the so called traceable bank transfer, which must include a reference to the applicable tax rule, the tax code of the deduction beneficiary, meaning the condominium through its own tax code, and the VAT number or tax code of the party carrying out the work.

The building manager must keep all transfer receipts, the contractor's and professionals' invoices, the assembly resolution with the ownership shares applied, and the cost allocation communicated to each owner with the specific share charged to them.

Any mistake in the transfer reference, such as omitting the regulatory reference or listing only the contractor's name without the condominium's tax code, can trigger disputes during a tax audit, so it is worth checking the transfer form before every payment rather than relying on memory.

Documents to hand each owner

At the end of the works, or in any case before the tax return deadline, the building manager must provide each owner with a certification stating the expenses incurred in the reference year, their individual ownership share, and the condominium's identifying details needed to complete the tax return.

It is useful to also attach a copy of the assembly minutes that approved the work, so the owner can demonstrate, if the tax authority asks, that the intervention was properly authorized and allocated according to ownership shares.

Keeping this documentation organized and accessible reduces the risk of last minute requests close to the tax deadline, when retrieving invoices or minutes from previous years becomes complicated. Condominium management software such as AmministraPro lets managers archive invoices, minutes, and cost allocations in one digital space, making it quick to generate the summary each owner needs.

Frequently asked questions