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Hämeen LO 24.11.1994 974/1 AI generated

Spousal joint ownership of rental properties allows full interest deduction under Finnish tax law.

Case Number Hämeen LO 24.11.1994 974/1
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted
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Legislator summary

AI generated

The Administrative Court of the Hameenlinna region allowed the tax deduction for interest on loans used to acquire rental properties owned jointly by spouses. The spouses purchased five apartments between 1989 and 1990, holding shares in two different housing cooperatives and one real estate company, with some shares acquired simultaneously. Although one apartment remained vacant during the tax year, the court determined that the loans were directly linked to income-generating activities. Consequently, the court ruled that interest expenses were fully deductible without restrictions under the relevant tax provisions.

Legislator headnote

AI generated

Section 87 of the Income Tax Act; Section 88 of the Income Tax Act; Section 89 of the Income Tax Act: Interest expenses on loans used to acquire rental properties owned jointly by spouses are fully deductible as they are considered part of income-generating activities.

Keywords

AI generated
spousal joint ownership rental property acquisition interest expense deduction income tax law Finnish tax code

Cited Legislation

AI generated
Section 87 of the Income Tax Act
Section 88 of the Income Tax Act
Section 89 of the Income Tax Act
AI generated
admin_1990_hame-county__13
Court allows interest deduction on rental property as business income when held for the entire tax year.
admin_1991_uusimaa-county__28
Court allows deduction of acquisition costs and stamp duty from rental income for tax purposes.
admin_1990_kuopio-county__96
Court held share transfer tax not due as shares were not defined under tax law.
admin_1995_kuopio-county__1250
Court allows loan interest deduction for share purchase when business activity is incidental to investment.
admin_1989_central-finland-county__509
Court allows loan interest deduction for share purchase enabling employment as business-related debt interest.

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Full text

Puolisot yhdessä olivat vuosina 1989-1990 ostaneet kahden eri asunto-osakeyhtiön ja yhden kiinteistöosakeyhtiön viiden eri huoneiston hallintaan oikeuttavat osakkeet, joista osakkeista he olivat omistaneet kolmen huoneiston hallintaan oikeuttavat osakkeet osittain samanaikaisesti.

He olivat saaneet vuokratuloja eräästä huoneistosta 15.1. - 30.9.1991 ja eräästä toisesta huoneistosta 1.3. - 30.9.1990. Valituksessa tarkoitetut kaksi huoneistoa oli myyty 30.9.1991. Niistä vain toisesta oli saatu vuokratuloa 15.1. - 30.9.1991 ja toista ei ollut saatu vuokrattua.

Lääninoikeus katsoi selvitetyksi, että puolisot olivat hankkineet kyseiset huoneistot vuokraustarkoituksessa ja että näiden kahden huoneiston hallintaan otetut lainat olivat liittyneet ansiotoimintaan. Korot olivat siis vähennyskelpoisia rajoituksitta.

Verovuosi 1990.

Verovuosi 1991.

TVL 87 §

TVL 88 §

TVL 89 §

Aalto: Koron vähennysoikeus henkilöverotuksessa s. 240