How do you calculate the taxable surplus when renting out your home?

Renting out a home can provide extra income, but it also comes with tax rules you need to be aware of. To file your taxes correctly, you must know how to calculate the surplus from your rental income. This surplus forms the basis for taxation and determines how much tax you will pay. In this article, we outline the key points that help you calculate your surplus correctly.

Quote:
"Guestit offers a complete solution that not only helps you rent out your home smoothly but also simplifies the administration."

Read also: How do you get started with renting out apartments?

When you rent out your home, all payments you receive from the tenant count as taxable rental income. This includes the rent itself as well as any additional fees the tenant pays, such as electricity, broadband or parking. Compensation for furnishings is also considered part of the rental income. These total amounts form the basis for calculating your surplus, the portion of your income that is subject to tax.

To calculate your surplus, start by subtracting the standard deduction of 40,000 SEK per year and per property from your total rental income. If you rent out a detached house or a freehold apartment, you can also deduct 20 percent of the rental income. The amount that remains after these deductions is your taxable surplus, which is taxed as capital income.

Read also: How is rental income taxed?

If you are renting out a condominium, you are allowed to deduct the monthly association fee you pay to the housing association during the rental period. This deduction is proportional and depends on how much of the home you are renting out and for how long. Keep in mind that the deduction only applies to the portion of the fee that exceeds any capital contributions.

Keeping track of all the rules regarding taxation and deductions can feel overwhelming, especially if you rent out your home frequently or for longer periods. By using Guestit’s management service, you avoid much of the administrative hassle. Guestit not only helps you find tenants but also ensures that rental income, deductions and surplus are handled correctly according to the Swedish Tax Agency’s regulations. This reduces the risk of mistakes and ensures a smooth rental process.