(edit title) Sold property 3yrs after moving from Sweden- tax? Can I sell without beein tax liable in Sweden? Options

[nickdk]

Hello everyone,

I left Sweden for Denmark 3 yrs ago and still had my apartment over there because I wasn't able to sell at that time. I have just recently sold the apartment and I'm trying to figure out if I need to pay and tax in Sweden based on the profit? I have beeb 100% taxed in Denmark for the last 3 years and in DK profit from property sale isn't taxed if I have been using the property for living at some point as I have (Lived in it for 3,5 years)
Please let me know if you know if I still have to deal with the Swedish 'Uppskov' laws?

Thanks!

[Beef]

HI, I got taxed on my UK flat. Similar circumstances.. That was before the uppskov laws. Even so I'm pretty sure as you've not lived there recently Skatteverket will tax you. Call them anonymously. I tried all different permutations but ultimately got the huge bill which had to be paid. You cannot discuss payment terms with them. They just pass on the debt to Kronofogden. Good luck. I hope you've not spent the money already..

[Johno]

Seems very clear to me, from discussions on here before and also reading up about it for my own "when it happens" preparation. Unless you sell and buy another property in Sweden when you can defer, you pay tax on the gain. Its why I keep all maintenance/repair bills to use as costs to reduce liability (5 years limit I believe, without looking it up). Living there or not, owning a property in Sweden means an annual tax return and a bill for gains when you sell. Period.

[nickdk]

thank you for the fast reply,

Johno: Are you saying that all expenses can be deducted? For example I had the apartment for the 3 years where I couldn't sell it and paid interest on my loan and the fees to the apartment association, can they be deducted together with the renovation expenses?

[Essingen]

Unless you sell and buy another property in Sweden

It is not now just restricted to just Sweden...against EU regulations.

[nickdk]

Essingen:
yes that was my next question because i also heard that all EU properties are for this purpose.

[Essingen]

and paid interest on my loan and the fees to the apartment association, can they be deducted together with the renovation expenses?

No. The list is here...(in Swedish)

Beräkna vinst eller förlust
Du räknar ut vinst eller förlust så här:

Försäljningspris
- Utgifter för försäljningen
- Inköpspris
- Förbättringsutgifter
- Kapitaltillskott
- Andel av inre reparationsfond vid försäljningen
+ Andel av inre reparationsfond vid köpet
+ Återföring av uppskovsbelopp
= Vinst/Förlust

[nickdk]

Can you explain what these mean:

- Kapitaltillskott
- Andel av inre reparationsfond vid försäljningen
+ Andel av inre reparationsfond vid köpet
+ Återföring av uppskovsbelopp

I tried google translate but It's still gibberish to me :S

[Yorkshireman]

Its why I keep all maintenance/repair bills to use as costs to reduce liability (5 years limit I believe, without looking it up).

Johno: Are you saying that all expenses can be deducted? For example I had the apartment for the 3 years where I couldn't sell it and paid interest on my loan and the fees ... (show full quote)

Johno: Are you saying that all expenses can be deducted? For example I had the apartment for the 3 years where I couldn't sell it and paid interest on my loan and the fees to the apartment association, can they be deducted together with the renovation expenses? ... (hide full quote)

General maintenance etc... cannot be deducted, that is counted as just something one does, a standard expense of owning property. The only thing You really can deduct is renovations/improvements ...eg. Painting the walls because they are tatty is considered maintenance ... building or removing a wall would be considered an improvement.

In addition to that, You can deduct the cost of any estate agent used for selling the property.

Interest on loans You cannot deduct. If you are taxed in Sweden, then You already received 30% of that back each year.

Fees to the association You certainly cannot deduct.

However, why not check in Denmark whether there are tax deductions for double homes? If so, maybe You can also back-date, normally one can go back a few years

[Yorkshireman]

Almost forgot to add ... OP, You do not qualify for any tax deferral. As You say You moved to Denmark 3.5 years ago. The rule for Deferring of taxes on sale of property have a requirement that it has to be your primary residence, and that you have lived there either 1 year before the sale, or 3 years within the last 5 years. The full profit will be subject to tax.

[nickdk]

Yorkshireman:

That's very bad/alarming news. Right now i was in the middle of collecting all invoices from the renovations done when i lived there. The only reason i have been in DK for 3 years while having the place in malmö is that I wasn't able to sell it sooner :S It seems very strange if I can't deduct all the work from '06 (all renovations happened during '06-07)

Regards

[nickdk]

found this from skatteverket:
"Improvement expenses are costs of new construction, and renovation and the cost of improvement repairs and maintenance. Improvement Expenditure may be counted for the years when the total is at least 5000 dollars. You may only deduct improvement repairs or maintenance that you made ​​during the year of sale, or any of the previous five years. For new construction, and remodeling are no such time limit."

it seems like there's no 5 year limit in my case!

[Yorkshireman]

Deducting renovation costs is 1 thing, Tax deferral is another.

It is possible to deferr, ie. not pay immediately, the tax due on profits if you purchase another property, that is what You dont qualify for.

[Mo]

are you buying a new property in Denmark ?

[nickdk]

Yorkshireman:
thank you for the explanation, i think I misunderstood the word 'deferral' - what I need is to be able to deduct the expenses from the renovation of the apartment because it was a total makeover of the apartment that cost me a lot of money.

mo: yes I have bought a house in Denmark and i'll get the keys Oct 22nd and the sale in Sweden is final at Oct 8th.

Regards