You must do the following:
Delete the holiday home from your tax return
As you have sold the property, you must delete it from your tax return. You do this by setting the capital value of the property to 0 under item 4.6.1.
You may be entitled to a deduction for the loss
If you cannot find the country in which the holiday home is situated in this list, you may be entitled to a deduction for the loss.
You will be entitled to a deduction for the loss if any profit would have been taxable.
If you are entitled to a deduction for the loss, you must declare the loss in item 3.3.6 of the tax return.
The loss must be declared in Norwegian kroner. If you have to convert the amount from a foreign currency, you must use the Norges Bank's bid rate as of the date of payment of the loss.
Look after your documentation
You do not need to attach documentation of the loss calculation to the tax return, but you must be able to present it to us it if we ask to see it later. You must be able to present the following documentation:
- Purchase contract
- Sales contract
- Any documentation for improvements to the holiday home
- Any documentation of other expenses linked to the holiday home (e.g. agent costs)
The Norwegian Tax Administration may require documentation in a non-Nordic language to be translated into Norwegian or English by an officially authorised translator.
Amend tax deduction card?
When you sell a holiday home, it can affect the basis for your tax deduction card (capital, debt and interest on debt). If you did not inform us about these changes when you applied for a tax deduction card, you should consider amending your tax deduction card.
Have you also rented out the property?