Norway Tax Agency Clarifies Maintenance Expense Deduction for Residential Rental Property

The Norwegian Tax Administration March 20 posted online Tax Appeals Board Decision No. SKNS1-2025-75, clarifying the deductibility of maintenance expenses related to residential rental property. The taxpayers, siblings, rented out a house that they owned to relatives and claimed deductions for rental losses and maintenance expenses related to rot repairs. The Tax Office denied the deductions. On appeal, the Tax Appeals Board found that: 1) the maintenance cost deduction was permitted but should be reduced for any changes to taxable rental from tax-free personal use; 2) the calculation of taxable rental income, including deductible losses, should be based on market-based ...