7L Rental income, other property – Instructions
Use this form to report rental income earned from property other than an apartment in a housing company or real estate. For example, this form is used to report income earned from renting out a car or a boat. Report the rental income even if no taxable income is left after all the related expenses have been deducted. Report only your portion of the rental income and the related expenses. If you are a co-owner of the rented property, sharing ownership with your spouse, for example, both of you need to complete your separate forms and report your own portions of the rental income and the related expenses.
When do I need to report rental income?
Report rental income as soon as you start renting out the property. The Tax Administration will take the rental income into account in your tax rate or use it to determine tax prepayments. Report the rental income via MyTax in connection with applying for tax prepayment or for change in withholding tax percentage. If you use this form to report rental income, also fill in Form 5010e (Application for prepayment and/or for change in withholding tax percentage).
Rental income must also be reported in connection with submitting a pre-completed tax return. The information may already be provided. If any information is missing or inaccurate, report the rental income and the related expenses via MyTax or on this form no later than on the deadline for returning the pre-completed tax return.
Also use this form when you submit a claim for adjustment after the assessment has finished. Fill in the claim for adjustment of income tax (Form 3308) and attach this form to your claim. The claim for adjustment can also be submitted via MyTax.
To report rental income for the purpose of applying for tax prepayment or for change in withholding tax percentage, report the details and amounts of rental income for all the property rented out. To correct information submitted previously on the pre-completed tax return or to claim for adjustment, report all the information about the property and rental income that the correction or claim for adjustment concerns.
Other rental income ‒ Select the correct form
Forms 7H, 7K and 7L can only be used to report rental income earned from property located in Finland. If your buy-to-let property is located abroad, report the related rental income on Form 16B (Statement on foreign income (capital income)).
1 Taxpayer identification and the tax year
Enter your name and personal identity code.
Report also the tax year, i.e. the year during which the reported rental income was earned.
2 Details of property rented out
In this section, report the following information:
- Specify the type of property, i.e. report what type of property has been rented out (e.g. a recreational vehicle, a boat).
- Report to whom you have rented out the property: the name and personal identity code or Business ID of the leaseholder.
- Enter the period for which the property has been rented out.
Were there several leaseholders or rental periods during the year?
If you rented out the property to more than one leaseholder during the year, leave the field “Personal ID or Business ID of leaseholder” empty. Instead of giving the leaseholder’s name, write “several”.
If you did not rent out the property for one continuous period but for several periods during the year, the rental period is the whole year. Enter the period in the form 1.1.20xx–31.12.20xx.
2.1 Your portion of gross rental income per year: Report the gross amount of rental income you have earned without deducting any expenses from it. Only report your portion of the rental income. If you are a co-owner of the property, sharing ownership with your spouse, for example, report only your portion of the rental income.
3 Expenses relating to rental income (only your portion)
3.1 Report the expenses attributable to the property rented out. Only report expenses incurred during the period in which the property has been rented out.
If you have taken out a loan to purchase the property, do not report the interest on the loan on this form; interests are deducted separately from all capital income. The loan is an income generation loan, which can be reported via MyTax. You can also report the information using Form 50B (Capital income and deductions) when you submit your pre-completed tax return or on Form 5010e for the Application for prepayment and/or for changes to withholding tax percentage.
3.2 First, fill in section 4 “Calculation of depreciation”. Then, transfer the amount entered in field 4.4 “Depreciation for the tax year” to this field.
3.4 and 3.5: Calculate and report the amount of taxable rental income, i.e. the difference between rental income and the related expenses. If the difference is positive, enter the amount of profit in field 3.4. If the expenses are higher than the income, i.e. the difference is negative, enter the amount of loss in field 3.5.
4 Calculation of depreciation
Depreciation is the means for deducting and reallocating from rental income for tax purposes expenses incurred from purchasing movable property, for example. Read more about depreciation for different types of property.
At the beginning of this section, enter the depreciation rate used. The maximum depreciation rate for movable property is 25%.
If you are a co-owner of the property, sharing ownership with your spouse, for example, remember to only report your portion of the acquisition price and the other information in the calculation of depreciation that is equivalent to your share of ownership.
4.1 Undepreciated acquisition cost at the start of the tax year: Report the undepreciated acquisition cost at the start of the tax year. Undepreciated acquisition cost means the remaining acquisition price after the previous years’ depreciation charges have been deducted from the original acquisition price.
4.2 Additions during the tax year: Report any additions to the property's acquisition price.
4.3 Undepreciated acquisition cost after additions: Add together the amounts entered in fields 4.1 and 4.2, i.e. report the undepreciated acquisition cost after additions. If no additions were made during the tax year, the same amount that was entered in field 4.1 is entered here.
4.4 Depreciation for the tax year: Calculate the amount of depreciation, i.e. the portion of the undepreciated acquisition cost based on the depreciation rate used. Transfer the calculated amount of depreciation to field 3.2.
4.5 Undepreciated acquisition cost at the end of the tax year: Subtract the “Depreciation for the tax year” from the amount entered in field 4.3 and enter the difference in this field.
Date and sign the form. Also give your daytime telephone number.