Kostnaðargrundvöllur

Kostnaðargrundvöllur refers to the cost basis in Icelandic accounting and tax law. It is the initial amount used to determine the gain or loss when an asset is sold or disposed of. This basis is crucial for calculating capital gains tax and depreciation.

Generally, the kostnaðargrundvöllur of an asset is its original purchase price. This includes not only the direct cost of acquisition but also any directly attributable expenses incurred to make the asset ready for its intended use. Examples of such expenses can include import duties, non-refundable taxes, and costs of installation or assembly. For assets acquired through inheritance or gift, the kostnaðargrundvöllur is typically the market value of the asset at the time of acquisition.

In certain situations, the kostnaðargrundvöllur can be adjusted. For instance, improvements or substantial additions made to an asset can increase its kostnaðargrundvöllur. Conversely, depreciation taken over time will reduce the kostnaðargrundvöllur for tax purposes. This adjustment is often referred to as the adjusted cost basis.

Understanding and correctly calculating the kostnaðargrundvöllur is essential for accurate financial reporting and tax compliance. It directly impacts the taxable profit or loss recognized from the sale or disposal of an asset. Discrepancies in determining this value can lead to incorrect tax assessments.