Legislator Case Law & Legislation
DE FR IT EN
Analyze in Legislator
Oulun LO 12.2.1991 118/I AI generated

Court denies mortgage interest deduction for vacant land before house completion and occupancy.

Case Number Oulun LO 12.2.1991 118/I
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Dismissed
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Administrative Court dismissed the taxpayer's claim to deduct mortgage interest from total income for a vacant lot purchased in 1986, where the house was not completed until late 1988. The taxpayer argued the interest was incurred for acquiring a permanent residence, but the court found the property was not yet a home at the time of the relevant tax years. Consequently, the court ruled the interest must be treated as a property income expense rather than a total income deduction.

Legislator headnote

AI generated

TVL 29 § 1 mom 1 kohta; TVL 38 § 1 mom; TVL 38 § 2 mom: Interest on a loan for acquiring vacant land is deductible from total income only if the land is used as a permanent residence at the time the interest is incurred; otherwise, it is an expense of the property income source.

Keywords

AI generated
mortgage interest deduction vacant land acquisition permanent residence requirement property income source total income deduction tax residency status timing of occupancy

Cited Legislation

AI generated
TVL 29 § 1 mom 1 kohta
TVL 38 § 1 mom
TVL 38 § 2 mom
AI generated
admin_1996_hame-county__8
Finland's Supreme Administrative Court allowed interest deduction for a home loan where the house was sold before occupancy.
kho-precedent_1999_39
Supreme Administrative Court dismissed appeal regarding interest deduction for construction debt not yet used as residence.
kho-precedent_2012_62
Sale of land with demolished former home qualifies for capital gains tax exemption if no new dwelling exists. Verdict: allowed.
admin_2010_oulu__515
First home tax exemption applies when construction delay is due to zoning changes, not buyer's fault.
admin_2005_kuopio__318
Court allows tax refund where inherited house was uninhabitable due to poor condition during ownership.

Need to analyze how this precedent applies to your matter?

Cross-reference this judgment against statutes, commentaries, and subsequent citing case law inside Legislator AI.

Open in Legislator →

Full text

Oikeuskysymyksenä asiassa oli, voitiinko rakentamattoman

tontin hankkimiseen otetun velan korot vähentää kokonaistulosta

asuntoon kohdistuvina, kun tontille oli valmistunut

talo ja sinne muutettu vasta noin 2,5 vuotta tontin

ostamisen jälkeen.

Verovelvollinen puolisoineen oli ostanut 15.7.1986 rakentamattoman

kiinteistön, jonka hankkimiseksi otetusta velasta

verovuosina 1986 ja 1987 maksamansa korot hän vaati

vakituiseen asuntoon kohdistuvina kokonaistulosta vähennettäviksi.

Kiinteistölle oli valmistunut talo joulukuussa

1988, jolloin verovelvollinen perheineen oli muuttanut

sinne asumaan. Asiakirjoista ei käynyt ilmi, että rakentaminen

olisi aloitettu ennen vuotta 1988 tai että asunnon

rakentaminen olisi viivästynyt verovelvollisesta riippumattomista

syistä.

Lääninoikeus pysyttäen verolautakunnan päätöksen katsoi,

ettei mainitusta velasta verovuosina 1986 ja 1987 maksettuja

korkoja voitu näissä olosuhteissa pitää asunnon hankkimisesta

aiheutuneina ja siten kokonaistulosta vähennettävinä

vaan kiinteistötulolähteeseen kohdistuvina.

Verovuosi 1986. Verovuosi 1987. Äänestys 2-1.

TVL 29 § 1 mom 1 kohta

TVL 38 § 1 mom

TVL 38 § 2 mom