Furniture bonus on your tax return: how the deduction works

The furniture bonus allows you to deduct, in equal annual instalments, a portion of the expenses incurred for the purchase of furniture and large appliances intended for a property undergoing renovation. To benefit from it, paying the expenses in the correct way is not enough: you must report them in your tax return every year, for the entire duration of the instalment period established by current legislation.

Who is entitled to the furniture bonus

The furniture bonus is linked to building renovation works. In general, it is available to those who have incurred expenses for the renovation of a residential property and, as part of those same works, have purchased new furniture or large appliances of a high energy class intended for the renovated home. The link between the renovation and the purchase of the goods is a substantive requirement: buying new furniture is not enough if the property has not undergone eligible building works.

How to pay so you don't lose the deduction

Expenses for furniture and appliances must be paid using traceable means: bank or postal transfer, or credit or debit card. Cash payments do not qualify for the deduction. For bank transfers, the special payment reference required for building works is not necessary, but it is still advisable to include a clear description of the expense and the tax code of the beneficiary.

• Bank or postal transfer (ordinary, not necessarily the special "parlante" type)
• Credit card or debit card
• No cash, no bearer cheques

Where to report it in the 730 form or the Redditi form

In the 730 form, expenses for the furniture bonus are entered in section E, in the part dedicated to building renovation expenses and the furniture bonus. In the forms you will find specific lines for reporting both the renovation expenses and those for the goods purchased in connection with them. In the Redditi PF form, the corresponding section is section RP. In both cases, the amount to report each year is the instalment due for that year: if the legislation provides for division into ten annual instalments, you will report one tenth of the total expense incurred on your return each year, for the ten years following the payment.

Documents to keep

The Italian Revenue Agency (Agenzia delle Entrate) may request supporting documentation even years later. It is advisable to carefully keep all receipts and records for the entire deduction period and beyond.

• Payment receipts (bank statement, transfer receipt, card receipt)
• Itemised invoices or receipts for the furniture and appliances purchased
• Documentation of the renovation works (permits, notifications to the municipality, contractor invoices)
• Notification to ENEA, where required for appliances

Watch out for spending limits and regulatory changes

The maximum deductible expense and the applicable deduction percentage may change from year to year based on budget laws. Before filing your return, always check the updated thresholds on the Italian Revenue Agency website or with your accountant. This is especially important if you purchased the goods in different periods or if you are deducting expenses incurred over several years: the applicable rules are those in force in the year the payment was made, not those of the year in which you file your return.

If you have renovated or are considering purchasing a property in Umbria — in Todi, the Tuderte area or the neighbouring municipalities — and want to understand which tax incentives apply to your situation, our team is available for an initial consultation on the local market. For specific tax matters, our advice is always to rely on an accountant or a tax assistance centre (CAF): the deduction needs to be set up correctly from the start, because errors in the tax return carry over through all the years of the instalment period.