Item 2.8.6

2.8.6 Short-term letting of your own home

Applies to the income year 2018

Under this item you enter the taxable rental income from short-term letting of your own home: Short-term letting in this context means letting with a duration of less than 30 days.

Rental income up to NOK 10,000 is tax-free. Of the excess amount, 85 percent will be considered taxable income. The amount limit of NOK 10,000 applies to your home for the entire income year, not per individual letting.

Does this item concern me?

The item concerns everyone who lets out part of their own home where the rental income is more than NOK 10,000 per year, and the duration of each letting is less than 30 days.

Do not use this item:

  • when the letting has a duration of more than 30 days. Taxable rental income must be entered under item 2.8.2 (item 3.3.12 in case of deductible deficits).
  • for letting your own property that you use during holidays and leisure time. Rental income exceeding NOK 10,000 must be entered under item 2.8.3, regardless of the duration of the letting.
  • for letting of property/a holiday home that you yourself do not use. Such taxable rental income must be entered under item 2.8.2 (item 3.3.12 in case of deductible deficits).
  • for letting of property or holiday homes abroad. Such taxable rental income must be entered under item 2.8.5 (item 3.3.12 in case of deductible deficits).

Rates and key figures

There is a tax-free amount of NOK 10,000. Of the excess amount, 85 percent will be considered taxable income. You’re not entitled to a deduction for costs incurred in relation to the letting. This will be included in the standard deduction of 15 percent of the rental income. Any profit will be taxed as capital income at the rate of 23 percent (2018).

If the letting is considered commercial activity, any profit will be taxed at the rate of 49.8 percent (2018).

Whether or not the letting is considered commercial activity, depends on an overall assessment where, amongst others, the duration and the frequency of the letting will be of importance. Commercial activity will primarily be considered in the case of frequent lettings.

How do I enter this in my tax return?

You must enter 85 percent of the rental income that exceeds NOK 10,000 under item 2.8.6.

By rental income, we mean the fee paid to you as rent. In addition, any other payments for simple additional services that are closely related to the rent, such as the final cleaning, electricity bills, firewood etc., are treated as part of the rent.

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 2.8.6.

Peter Ås lets out his home for three weeks while he’s on summer holiday. The agreed-upon rent is NOK 20,000. In addition, the lessees pay Peter NOK 1,000 to be able to use his mountain and road bike cycles. The payment to use the bike cycles is considered so closely linked to the rent that it must be considered part of the total rent.

Rental income:

NOK 21,000

Tax-free amount

NOK 10,000

Total

NOK 11,000


Taxable income:

The taxable income will then be NOK 11,000 x 85 percent = NOK 9,350, which must be entered under item 2.8.6.

Peter Ås lets out his home for three weeks while he’s on summer holiday, for NOK 30,000. The letting is organised through an agency, which charges a fee of NOK 5,000. From the income year 2018, the practice concerning calculating taxable income from the letting of property/holiday home is altered. From the income year 2018, no deductions for fees to agencies are given. When calculating the taxable income, you must use the gross amount. That means the agreed-upon rent before you deduct the letting agency’s fee.

Example

 

Rental income:

NOK 30,000 

Tax-free amount

NOK 10,000

=

Total

NOK 20,000

 

The taxable income will then be NOK 20,000 x 85 percent = NOK 17,000, which must be entered under item 2.8.6.

Marte Kirkerud lets out her apartment via Airbnb during several long weekends during a year. In total, the lessees pay NOK 18,000 in rent, not including the so-called "guest service fee".

Airbnb charges around 20 percent of the agreed-upon rent as payment for their services, 3 percent of which is charged to the host ("host service fee"). The host service fee amounts to NOK 540. The rest is charged to the lessee in the form of a “guest service fee". After deducting Airbnb’s “host service fee”, Marte is left with NOK 17,460.

When calculating the taxable income, you must use the gross amount. That means the agreed-upon rent before you deduct the letting agency’s fee (“host service fee”). The “guest service fee" is not included in the calculation.

Total income

NOK 18,000

Tax-free income

NOK 10,000

Total

NOK 8,000


Taxable income:

The taxable income will then be NOK 8,000 x 85 percent = NOK 6,800, which must be entered under item 2.8.6.

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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