Item 3.3.12

3.3.12 Deficit on letting of real property outside business activities (RF-1189)

Applies to the income year 2017

Under this item, you must enter the calculated deficit on letting from item 2.12 in form "RF-1189 Letting etc. of real property".

Does this item concern me?

The item concerns everyone who has:

  • a deductible deficit on the letting of property - housing, holiday home, plots of land, etc.
  • a deductible deficit on the letting of property in connection with surrendered property,
  • a deductible deficit on the letting of property which is distributed between spouses.

Letting is tax-free if you are letting half or less of the home. You do not need to fill in this item in such cases. "Half or less" relates to the rent value of the home and not the size (area) og the home.

If you let more than half of the home, related to the rented value, and the rental income is less than NOK 20,000 per year, the income will be tax-free and you do not need to fill in this item.

If you let more than half of the home, related to the rented value, and the rental income is NOK 20,000 or more, you will have to pay tax on the entire income and you must therefore complete form RF-1189 Letting etc. of real property.

The letting of plots is always taxable.

If you let to close family members and they pay the running costs, you will not need to complete form RF-1189 Letting etc. of real property or this item.

If the person who lives there does not pay anything, it is considered benefit of free housing and the lessee must pay tax on that.

Rates and key figures

Rates for regular income tax.

The tax rate is 24 per cent for the income year 2017.

How do I enter this in my tax return?

Under item 3.3.12, you must enter the amount from item 2.12 in form RF-1189 Letting etc. of real property. When you submit electronically, the amount under item 3.3.12 will be automatically transferred from form RF-1189.

Calculation

  Rental income 
deduction
= result

 

If the result is negative (deficit), you must enter the deficit under the item. Simply put, the estimated taxes for the income year 2017 will be reduced by 24 percent of what you put deducted. If you have a surplus, this must be entered under item 2.8.2.

Deduction

You can receive a deduction for costs relateded to the following in the rental home, where rental income is taxable:

  • electricity
  • telephone
  • depreciation of fixtures and fittings
  • alterations for letting
  • maintenance, but not improvements
  • travelling to the rental property with 3.50 NOK per kilometer. If you are traveling more than 10 days and not overnight, you use 1.56 NOK per kilometer for all journeys.

This is entered as a deduction under the rental income.

Deductions for interest and joint debt must be entered under item 3.3.1.

If the deficit is distributed between spouses, only one of the spouses must fill in form RF-1189 and state the other spouse's share under item 2.11 in RF-1189 Letting etc. of real property.

Other cohabitants who are not spouse-equivalent must be assessed individually for their share of capital/debt and income/deductions, and they cannot freely allocate income between themselves, for example.

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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