September 23, 2019 Harold Ellis 0Comment

When you sell a home and make a profit, you have to pay a profit tax. But filling in the declaration correctly is certainly not simple. Now, the Swedish Tax Agency introduces three new free services that calculate the correct amounts for you.

It is easy to make mistakes when you have to declare the profit tax on a home sale or apply for a deferral. Selling a home is not something you do often and the uncertainty about what really applies is great among Swedes.

– Housing sales are one of the areas in the declaration where the most mistakes are made. The rules are tricky and difficult to apply, combined with the fact that most people are not very good at saving receipts and documents, says Noly Maao, tax expert at the Swedish Tax Agency, to Expressen.

Preliminary calculations in minutes

The Swedish Tax Agency has three new services – one for calculating approximate profit tax or loss, one for calculating deferral and one for compiling improvement data. By filling in a few details about your home sale, the correct – albeit preliminary – amounts are calculated directly. You then transfer the information to the correct column in the declaration.  

Paying directly is safest…

It may be convenient to postpone the profit tax, but at the same time you will lose money when interest rates start ticking. When you sell a home, you usually have a final tax deficit that exceeds SEK 30,000. To avoid interest, you must pay the income tax to your tax account before February 13.

– It is easy to both deposit and withdraw money from the account. The interest rate is not that high so you don’t have to feel any panic about paying in, but it is still a little higher than you can get if you have the money in a savings account, explains Christina Söderberg at Compricer for Expressen.

But deferral is easy if you want to invest in a new home

If you need the money, for example to afford a new home, you have the right to postpone the income tax. Here it is important that you make all the deductions you are entitled to, so that the profit is not greater than necessary. Also, be aware that deferral can mean large interest costs in the long run and that you get a tax debt that must be paid in the future.

If you have already used up the money, you can actually profit from taking out a loan to pay the tax instead of paying the deferred interest. Through Alan Manual you can compare interest rates and offers from over 20 banks and lenders at the same time. You do not commit yourself to anything and all lenders share the same credit information. Read more here.

Facts about profit tax on housing sales:

  • Your profit or loss is counted against your other income and expenses in the declaration
  • Capital surplus is taxed with state tax of 30%
  • You only tax on your profits on 22/30 and you have the right to deduct, among other things, brokerage fees and renovations in connection with the sale

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