In this Master’s Thesis the main purpose is to describe, analyse and assess the rules related to taxation of real estate profit, with special considerations made to the exceptions to the main rule, which makes is possible to sell private properties and holiday homes tax-free. At first we go through the background history for the Danish Act on Taxation of Profit from Sale of Real Property, where the laws §§ 8 and 9 will be described. These two paragraphs contain the exceptions to the main rule and are the focus areas in this thesis. In the exposition of § 8, it is first clarified which kind of properties that can be included under the clause. The significance of the public assessment is clarified and analysis is made regarding issues arising when a property is used different than the public assessment indicates. Afterwards the demand of habitation is described, which varies depending the type of property. These different concepts are analysed, including the definition of household and “someone’s home”. The sections about § 8, also contains the area demands and the difficult considerations you should make as a taxpayer if you want to make sure that you can sell a property tax-free. An exposition is also made regarding holiday homes. This section contains a description and analyse of which kind of holiday homes that can be included under the clause. Furthermore considerations are made to issues regarding the demand of habitation of holiday homes. At the end of this section the rules concerning the sale of shared apartments and shares etc. associated with the rights to use an apartment in a building with multiple apartments are analysed. In the next section § 9 is discussed, which concerns properties that also are being used for significant business. This includes an exposition of the public assessment contra the actual use and a discussion of what can be considered as significant business. In most cases taxpayers prefer to be covered by § 8 rather than § 9, and this seems to be the recurring issue. The thesis is finalised with a conclusion where we have made a summery of all the issued discussed through the thesis, and thus answered the given question in our problem formulation. Finally we have assessed the possible future considerations and initiatives regarding the taxation of real estate properties.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||125|