2.8.2 Net income from the letting, etc. of real property unrelated to business (RF-1189E)

Item 2.8.2 Applies to the tax year 2016

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Under this item, you must enter the calculated profit on letting in form "RF-1189E Letting etc. of real property".

Does this item concern me?

The item concerns everyone who:

  • has a taxable profit from the letting of property (housing, holiday home, plots of land, etc.),
  • provides benefits from surrendered property in the form of a right of occupancy outside agriculture and forestry has made a taxable profit from the letting of property which is allocated between spouses.

Letting of your own housing

Rental income from your own home is tax-free when:

you let less than half of your home, calculated according to rental value, or
you let all or a high proportion of your home for up to NOK 20,000 during the income year.

"Rental value" means the value of the residential property on the open rental market for the purposes for which the let area is to be used. This will not necessarily correspond to the area ratio, although the two are often the same. Tax-free rental income must not be declared in the tax return.

If you let more than half of the property calculated according to rental value and/or the rental income amounts to NOK 20,000 or more, you will have to pay tax on the entire income and complete form RF-1189E Letting etc. of real property. A profit has been calculated from the abovementioned form, which must be entered under item 2.8.2 of the tax return.

Plots of land

The letting of plots is always taxable.

Letting to family members

If you let to close family members (e.g. child, sibling or parents) and they pay all running expenses associated with the property, you will not need to complete form RF-1189E or this item. If the person who lives there does not pay anything, the benefit of free accommodation will be considered a taxable benefit for the tenant. 

Rates and key figures

Rate for ordinary income tax

For the 2016 income year, the tax rate is 25 percent.

Rental value of surrendered property

For the 2016 income year, the gross rental value of surrendered property will be assessed based on the following rates:

Living space                        Rental value
Over 100 square metres:     NOK 27,800
60-100 square metres:        NOK 20,800
Under 60 square metres:     NOK 13,900

The income item must not be completed if the recipient pays all operating expenses in accordance with the original purchase agreement. The gross benefit derived from surrendered property must be entered as a deduction under item 3.3.3 in the benefit provider’s tax return, and must not be included when completing form RF-1189E.

How do I enter this in my tax return?

Under item 2.8.2, you should enter the amount from lettinng in form "RF-1189E Letting etc. of real property". When you submit electronically, the amount under item 2.8.2 will be automatically transferred from form RF-1189E.

Calculation
   Rental income
– deduction
=   result

If the result is positive (profit), you must enter the profit under the item. You pay 25 percent of the profit in tax. If you have a deficit, you can claim a deduction for this under item 3.3.12.

Deduction

You can claim deductions for the following costs, among other things, linked to the rental property in cases where the rental income is taxable:

  • electricity
  • telephone
  • depreciation of fixtures and fittings
  • alterations to enable letting
  • maintenance, but not improvements or changes to the standard of accommodation
  • travel to the rental property at the rate of NOK 3.80 per kilometre. If you travel more than 10 days and do not stay overnight, you should use the rate of NOK 1.50 per kilometre for all trips.

This is entered as a deduction from the rental income in form RF-1189E.

Deductions for interest and joint debt must be entered under item 3.3.1.

Allocation between spouses/registered partners/spouse-equivalent cohabitants

Other cohabitants who are not spouse-equivalent must be assessed individually for their share of capital/debt and income/deductions, and they cannot freely allocate rental income between themselves, for example. 

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Documentation requirements

You do not need to send us any documentation for this, but you must be able to present documentation if we ask for it.

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