2023-12-25 02:40:23
Taxpayers have until the 31st to make the last operations that can reduce the “invoice” in the personal income tax return that they must submit next spring, as highlighted by the experts from Aedaf and the General Council of Economists. The big news for the 2023 financial year that is about to end is the new 15% deduction, up to a maximum base of 20,000 euros, for the purchase of a new plug-in electric vehicle not used for economic activities and another of the same amount, with a maximum base of 4,000 euros, for the installation of battery recharging systems, provided that the investment has been made after June 30.
Contributions to pension plans include a 30% reduction up to a maximum base of 1,500 euros, although this limit is increased by 8,500 euros if this instrument receives business contributions. Taxpayers who have taken actions this year to improve the energy efficiency of their habitual or rental home can deduct 20% or 40% of the amount invested as long as it reduces the demand for heating and cooling by at least 7%. In the event that the works affect a complete residential building, the reduction is 60%. Those who bought their primary home before 2013 can still apply the 15% deduction on the amounts invested in the mortgage, up to a maximum base of 9,040 euros. Donations to non-profit entities allow a deduction of 80% of the first 150 euros contributed and 35% of the rest, a percentage that rises to 40% if at least the same amount was donated in the last two years. Investments in new or recently created companies result in a 30% deduction, up to a maximum base of 60,000 euros. In the case of emerging companies, the deduction is 50% with a maximum base of 100,000 euros. Requesting restaurant checks, transportation checks or medical insurance from the company is another measure to take into account. Monetary remuneration in kind is not taxable in personal income tax.
Rental contracts and repair expenses
The benefits of investing in long-term savings plans are exempt as long as the annual contribution does not exceed 5,000 euros and is maintained for at least 5 years from the first contribution. If you have a home that you want to rent regularly, it is recommended to formalize the contract before December 31 to enjoy a 60% reduction, since it will drop to 50% from January 1, 2024. If the home is in a stressed market or has been rehabilitated can access greater reductions for contracts signed from 2024 onwards. Taxpayers with capital gains in 2023 can reduce their tax bill if they close operations at a loss, for example sales of shares, that offset them. Profits from the sale of the primary residence are not taxed if they are reinvested in another primary residence within a period of two years. If you have a permanent rental home, the repair and maintenance expenses are deductible in the following four years, so the end of the year can be a good time for these investments and enjoy their tax advantages already in 2024. Those who retired In 2021 they have until the end of the year to rescue their pension plan with a 40% tax reduction for contributions made before 2007 if it is done in the form of capital. Those over 65 years of age are exempt from paying capital gains tax as long as they constitute a life annuity, up to a maximum of 240,000 euros. The capital gain from the sale of the habitual residence is also not taxed.
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