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The tax report – tips and advice on tax deductions

Tax deductions

New loan, refinanced or sold home? See our tips and advice on what you should check on your tax return.

You can lose thousands by not checking your tax return

The tax return is sent out this year between 7. and 22. March. Did you know that almost 10% of the population does not check their tax return?
This is particularly important for homeowners, as there are no new ones that have been filled in in advance. Check your property value and look for deductions!

The tax value of your home, also known as the assessed value, is the tax value of your property. In several municipalities, it also affects property tax. From 2023, wealth tax will be higher for homes worth more than NOK 10 million.

For the home you live in, the tax value must be 25 percent of the market value for homes worth less than NOK 10 million. This value is based on the size of the property and the current property values in the local area. However, this can lead to certain inaccuracies.

In the case of homes with a value exceeding NOK 10 million, the value exceeding this limit is taxed at 70 percent of the actual value. This may be one of the reasons why the tax value has increased. Calculating the capital value of your home can be found here.

It is not always correct what is submitted automatically, there can be both deficiencies and data errors which are the reasons for this. In any case, it is your responsibility that the information is correct when you approve the tax return.

An example is a deduction for costs associated with establishing or refinancing a loan. Here, you are entitled to a deduction for the costs you incurred in taking out a new mortgage or refinancing an existing loan. You can get a deduction for what you have paid in debt interest, interest on late payment and/or interest benefit from a reasonable loan from your employer. In 2023, there were many interest rate hikes and many people switched banks to get better terms, which provides a basis for deductions.

If you have a loan with someone else, such as a spouse or parents, you should check that the loan and interest are correctly divided between you in your tax deduction card and tax return. The Norwegian Tax Administration’s website states that the loan is automatically divided equally between the borrowers in the tax return. If the distribution is incorrect, it must be changed. Previously, only the main borrower received all loans and interest on loans on their tax return.

For many, this will be a more appropriate distribution, but perhaps not in cases where parents are co-borrowers with children, but the child actually pays all the monthly costs.

Read mores more on the Norwegian Tax Administration about how to allocate this.

You can claim a tax deduction for:

  • costs for taking out a loan, including establishment fees.
  • costs in connection with refinancing a loan to obtain a lower interest rate, including costs for an appraiser.
  • fees to housing associations related to special repayment of IN loans (joint debt with individual repayment)
  • interest on loans from the employer and from private lenders (for example family members)
  • paid late interest on debt interest, and interest and costs on credit purchases
  • interest on loans abroad

You cannot claim a tax deduction for:

  • interest that is due, but which you have not paid by the end of the due year (unless they are included in activities subject to bookkeeping). Such interest is only deducted for the year in which you pay it. Also for student loans in Lånekassen, deductions are only given for interest that has been paid.
  • debt collection fees and costs in connection with debt collection.
  • interest surcharge on tax arrears (does not apply to late payment interest).

If you change, delete or add information about debt interest, you must be able to document this with an annual statement or confirmation from the credit institution. You do not need to attach the confirmation, but you must be able to show it if the tax authorities ask for it.

Tax deduction for taxable rental accommodation

If you own a home or apartment that you rent out and you tax the rental income, you have the right to deduct maintenance expenses related to the rental unit, as well as other expenses related to the rental relationship. If the home has major maintenance needs, accounting reconciliation can be beneficial.

All costs you receive in connection with rental income can, as a starting point, be claimed as deductions.

Examples of costs:

  • Municipal taxes
  • Insurance for the rental unit
  • Paid property tax on the rental property
  • Costs for electricity, heating, cleaning (if the tenant does not pay for this)
  • Expenses for necessary maintenance
  • Costs in connection with driving to the rental property

Distribution of debt interest between spouses/cohabitants/co-borrowers

The loan is only reported on one of you, even if you have the loan together with someone else. The distribution and how this can be done depends on whether you are married or not. The distribution must be repeated every year, and both must actively make the change. A change in one does NOT automatically result in a change in the other borrower.

The total must be the same anyway. Therefore; if debt interest is reduced by NOK 8,000 with one, it must increase by NOK 8,000 with the other. You must change or add information about the lender, debt, debt interest and reason for the change. Both borrowers must have a 22 percent deduction from what you have paid in debt interest.

Spouses with a joint loan
When you are married and have a loan together, the spouses can distribute the deduction for the debt and the debt interest between them as they wish. It does not matter what is reported by the bank and what is the real responsibility between the spouses. It is also immaterial which of you has actually paid the interest.

Cohabitants or co-borrowers with a joint loan
When cohabitants/co-borrowers have a loan together and the bank has reported the amount only on one, both must change their tax returns. They must distribute the deduction for the debt and the debt interest according to the actual liability. Here it is also immaterial which of the cohabitants/co-borrowers has actually paid the interest.

We also recommend you take a look at these pages:
– the tax authority’s deduction guide, you can find it here
– calculation of the asset value of housing, you can find it here

Source reference: The Norwegian Tax Agency