Item 2.8.3

2.8.3 Taxable income from letting a holiday home that you have used yourself

Applies to the income year 2017

Under this item, you must enter taxable rental income from a holiday home that you also use for your own private enjoyment. Rental income of up to NOK 10,000 per year is tax-free. Of the excess amount, 85 percent will be considered taxable income.

Does this item concern me?

The item concerns everyone who lets a holiday home that they use themselves where the rental income exceeds NOK 10,000 per year.

If you let a number of holiday homes, the tax-free amount of NOK 10,000 applies to each property.

If you let a holiday home that you don't use yourself (accounts-based assessment), you must declare the income under item 2.8.2.

If you let a holiday home or house/apartment abroad, you must enter the income under item 2.8.5.

Rates and key figures

You have a tax-free amount of NOK 10,000. Of the excess income, 85 percent will be considered taxable income. The tax rate for the 2017 income year is 24 percent.

How do I enter this in my tax return?

You must enter 85 percent of the rental income which exceeds NOK 10,000 (tax-exempt assessment). You won't be entitled to a deduction for your expenses that are attributable to the holiday home.

Example

  Rental income NOK 15,000
- Tax-free amount NOK 10,000
= Total NOK 5,000

The taxable income will then be NOK 5,000 x 85 percent = NOK 4,250, which must be entered under item 2.8.3.

You'll be taxed on your income after the letting agency's commission has been deducted. However, no deduction is given for maintenance costs and other ongoing costs linked to the holiday home.

Example:

  Rental income NOK 70,000
- Commission, letting agency NOK 7,000
Tax-free amount NOK 10,000
= Total NOK 53,000

The taxable income will then be NOK 53,000 x 85 percent = NOK 45,050, which must be entered under item 2.8.3.

(From the 2018 income year onwards, the practice linked to the calculation of taxable income from the letting of your own home will change, as no deduction will be given for commission paid to a letting agency from this income year. This will mean that, in the example above, the taxable income to be entered under item 2.8.3 of the 2018 tax return will be NOK 51,000, (70,000-10,000) x 85%).

The tax-free amount of NOK 10,000 is distributed according to each owner's share of ownership. If the holiday home consists of several housing units and the joint owners have an exclusive right of use, they will each be entitled to their own tax-free amount of NOK 10,000.

Documentation requirements

You do not need to send us any documentation concerning this, but you must be able to present it upon request.

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