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Kuopion LO 13.2.1987 88/II AI generated

Court allows unlimited interest deduction for owner-occupied home loan where partner rents out part of it.

Case Number Kuopion LO 13.2.1987 88/II
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Administrative Court allowed the director-shareholder to deduct all interest on a mortgage used to purchase a private home, despite the company renting out a portion of it. The Tax Board had previously limited the deduction for the rented portion to 10,000 marks, arguing it was not owner-occupied. The court ruled that since the shareholder and spouse worked full-time in the company and lived in the home, the entire property qualifies as their own residence, permitting full interest deduction.

Legislator headnote

AI generated

s. 10 b. 1. v. 1930; s. 10 c. 1. v. 1930: Where a shareholder and spouse reside in a home they purchased with a loan and work full-time in a company, the entire property is considered their own residence, allowing unlimited interest deduction even if part is rented out.

Keywords

AI generated
interest deduction owner-occupied residence shareholder director mortgage interest tax board ruling

Cited Legislation

AI generated
s. 10 b. 1. v. 1930
s. 10 c. 1. v. 1930
AI generated
admin_1991_lapland-county__1067
Shareholding in a holiday apartment constitutes business activity only if the company's sole purpose is renting it out.
admin_1987_kuopio-county__485
Finnish Administrative Court allows property income deduction for rent paid directly to housing association.
appeal_1983_helsinki__112
Landlord allowed to raise rent once including all previously omitted permitted increases.
admin_1990_hame-county__13
Court allows interest deduction on rental property as business income when held for the entire tax year.
admin_1988_turku-and-pori-county__1255
Court dismissed interest deduction on employer's car debt as not qualifying for employee business activity tax relief.

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Full text

Onko perheyhtiön osakkaalla ja toimitusjohtajalla oikeus vähentää

tulostaan omakotikiinteistön hankintaan käytetyn lainan

korot rajoituksetta siltä osin, kun ne kohdistuvat yhtiölle

vuokrattuihin tiloihin.

Sairaankuljetusta harjoittavan osakeyhtiön toimitusjohtajaosakas

(25 %) oli vuokrannut Oy:lle omakotitalostaan päivystys-

ja toimistohuoneeksi sekä autojen säilytystä varten tiloja

yhteensä 75 neliömetriä, 30 000 markan vuosivuokrasta.

Kiinteistöön kohdistuvat korot haluttiin vähentää kokonaan.

Osakas ja hänen vaimonsa työskentelivät päätoimisesti yhtiössä

ja saivat siltä palkkaa.

Verolautakunta jakoi korot omana asuntona käytetyn ja vuokratun

osuuden pinta-alojen suhteessa ja katsoi vuokrattuun

osaan kohdistuvan osuuden ns. muiksi koroiksi, jotka korkojen

vähennysoikeuden rajoittamisesta annetun lain mukaan ovat vähennyskelpoisia

vain 10 000 markan määrään saakka.