Renting out farms
ncome from renting out farms is taxable and must be stated in the tax return. The same applies to the renting out of rights related to such property, for example the renting out of milk quotas or rights such as hunting and fishing.
You can claim a deduction for expenses related to the rental.
Does this apply to me?
his also applies to those who rent out farms or rights related to farms. For example, it can be the renting out of:
- farmlands
- farm buildings (cowsheds, barns, etc.) with farmlands
- milk quotas
- hunting and fishing rights
- grazing rights, rights of way, etc.
- waterfall rights, for example the renting out of waterfall rights to power companies
Renting out buildings on the farm follows the same rules as renting out residential properties.
What you need to do
In your tax return, you must state:
- the rental income
- deductions for expenses related to the rental
If you are engaged in agricultural activity as a self-employed person, you must state all income and expenses related to this activity.
Specific information if you
Renting out farms, real property, buildings, etc, is usually not a business activity. If the rental includes both buildings and assets for use in business (fixed assets) where the landlord is responsible for maintenance, the rental may be regarded as a business activity. This must be considered in each case, based on the rental agreement.
Deductions
You can claim a deduction for expenses related to the rental. For example, there may be a deduction for:
- insurance
- municipal taxes for the property you rent out
- maintenance
- depreciation of assets
Example
Kari rents our part of her farmlands with a barn and a cowshed. Kari can then claim a deduction for insurance, municipal taxes and depreciations on the barn and cowshed. If Kari has expenses for maintenance, such as replacing a window in the cowshed, she can also claim a deduction for this.
Supporting documents
You do not need to send us supporting documents now, but you must be able to provide them if asked.