When a gain is tax-free/loss is non-deductible

If the conditions linked to period of use and ownership are met, any gain made on the sale of your holiday home will be tax-free. Similarly, you can't deduct a loss in the tax return.

In your tax return for the year in which the holiday home is sold, you must make sure that the tax value of the property hasn't been entered. If this value has been entered for you, you must amend your tax return.

When a gain is taxable/loss is deductible

If the conditions linked to period of use and ownership aren't met, any gain made on the sale of your holiday home will be tax liable. Similarly, you can deduct a loss in the tax return.

Gains or losses made on the sale of holiday homes must be entered in the tax return for the income year in which the property is taken over by the purchaser. This applies even if the purchase sum is paid in full or in part in a different year.

You can use form RF-1318 as a help for calculating tax liable gain/deductible losses. 

What to do:

• You calculate the tax liable gain/deductible loss by using RF-1318 as a help
• You enter the calculated amount (gain/loss) in the tax return