Item 3.2.19

3.2.19 Deficit (RF-1175, RF-1167, RF-1242, RF-1221) and deficit in connection with simplified reporting

Applies to the income year 2017

Under this item, you enter the calculated business deficit, declared through simplified reporting, Business Tax return or using form "RF-1175 Income statement 1", "RF-1167 Income statement 2", "RF-1242 Income statement for visual artists" and/or item 1140 in "RF-1221 Deltakerens melding over egen formue og inntekt i selskap med deltakerfastsetting" (Partner's statement of capital and income in businesses assessed as partnerships – in Norwegian only). The average overhang from forestry should also be entered under this item, see below. 

Does this item concern me?

The item concerns anyone who runs:

  • a sole proprietorship and has a calculated deficit in "Business Tax return",
  • form "RF-1175 Income statement 1" or "RF-1167 Næringsoppgave 2" (Income statement 2 - in Norwegian only),
  • a business as a visual artist and has a calculated deficit in form "RF-1242 Næringsoppgave for billedkunstner" (Income statement for visual artists- in Norwegian only),
  • is a partner in a business assessed as a partnership and who has a calculated deficit in form "RF-1221 Deltakerens melding over egen formue og inntekt i selskap med deltakerfastsetting" (Partner’s statement of capital and income in businesses assessed as partnerships – in Norwegian only)
  • have an average overhang from income from forestry. An average overhang occurs when forest activity is insufficient to fulfill the terms for business and the sum of the up to four last years real income is less than the average tax assessment for the same period of time.

How do I enter this in my tax return?

If you are exempt from the obligation to submit an income statement, any negative operating result will be transferred from the "Wizard for operating revenue and expenses" to this item in the tax return. 

Under item 3.2.19, you must enter the amount from item 0402 in form RF-1175 Income statement 1 or RF-1167 Næringsoppgave 2 (Income statement 2 - in Norwegian only). When you submit electronically, the amount under item 3.2.19 will be automatically transferred from form RF-1175 or RF-1167.

Distribution between spouses

Deficits in business must be allocated to the spouse who is the responsible owner of the enterprise, or alternatively both spouses if they are both responsible. A spouse who is not the responsible owner cannot be allocated a share of a deficit even if they could have been allocated a profit under the rules concerning joint enterprises based on work input.

If business income is distributed between spouses, you should enter the amount from item 0402 (column F) in form RF-1175 Income statement 1 or RF-1167 Næringsoppgave 2 (Income statement 2 - in Norwegian only), under item 3.2.19. Business deficits must be allocated on the basis of work input. When you submit electronically, the amount under item 3.2.19 will be automatically transferred from form RF-1175 or RF-1167.

Under item 3.2.19, you must enter the amount from item 1140 in form RF-1221 Deltakerens melding over egen formue og inntekt i selskap med deltakerfastsetting" (Partner’s statement of own capital and income in businesses assessed as partnerships – in Norwegian only). When you submit electronically, the amount under item 3.2.19 will be automatically transferred from form RF-1221.

Distribution between spouses

If business income is distributed between spouses, under item 3.2.19 you should enter the amount from item 1240 in form RF-1221.

Under item 3.2.19, you must enter the amount from item 2.90 in form RF-1242 Næringsoppgave for billedkunstner (Income statement for visual artists- in Norwegian only). When you submit electronically, the amount under item 3.2.19 will be automatically transferred from form RF-1242.

Business Tax return is an electronic delivery method for businesses with simple tax issues. If the solution is suitable for your business, we recommend that you use this when you submit your tax return.

Check if your company can deliver with "Business Tax return".

Documentation requirements

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

footer/desktop/standard