If you choose to make use of the accounting deduction, you will be taxed on your rental income minus the actual expenses. This income is considered income from capital.
Enter your income minus your expenses in box 37 in your tax assessment notice and in field 218 in your preliminary income assessment.
You should keep a record of rental income and expenses that you must be able to present to us upon request. You must have receipts for items you are deducting.
Income:
The rental income is the total amount you receive, including payment for electricity, water and heating, for example.
Expenses:
You are entitled to deduct expenses you incur in the period you rent out your holiday home.
- Expenses directly related to renting out your holiday home, advertising expenses, for example.
- Electricity, water, heating, for example.
- Maintenance expenses and depreciation of fittings and furniture (domestic appliances excepted).
- You are not entitled to deduct maintenance expenses related to the actual property.
If you use the accounting deduction method, you cannot revert to the standard deduction.
Land tax deduction (property tax)
You can deduct your land tax for the weeks you rent out your holiday home. A year has 52 weeks, so if you rent out your holiday home for four weeks, for example, you can deduct 4/52 of your land tax as an expense.
Property value tax relief
You do not have to pay property value tax for the period you rent out your holiday home. You obtain the relief by entering the rental period in your tax assessment notice.
Example: 8 weeks of rental Renting out | DKK |
Rental income, including electricity, heating and water | 33,600 |
Expenses for electricity, heating and water in the rental period | -3,600 |
Proportional part of house contents insurance (8/52) | -1,000 |
Proportional part of house contents insurance (8/52) | -1,000 |
Proportional part of expenses for maintenance of furniture (8/52) | -1,000 |
Proportional part of land tax (8/52) | -2,000 |
Advertising expenses | -3,000 |
Rental income to be reported | 22,000 |