luovutustappio

Luovutustappio is a Finnish tax term describing a loss realized on the disposal of an asset that is taxed as capital income. The loss occurs when the disposal price (luovutushinta) is lower than the asset’s tax basis, which typically includes the original purchase price and allowable costs connected to acquiring and improving the asset.

The concept applies to various capital assets, such as securities (stocks and bonds), real estate, and business assets. A luovutustappio arises only when the disposal price is lower than the tax basis; if the disposal price exceeds the basis, the result is a luovutustulo (capital gain).

Tax treatment and reporting can vary by asset type and taxpayer. In general, luovutustappio can be used to reduce capital gains from other disposals in the same tax period, and any unused loss may be carried forward to future years under prevailing tax rules. The exact mechanics—which losses can be offset, against which gains, and how carry-forwards operate—are determined by current Finnish tax legislation and guidelines from the Finnish Tax Administration.

Calculation and documentation are essential. The amount of tappio is the difference between the luovutushinta and the adjusted hankintahinta (including allowable costs). Taxpayers should retain records of purchase prices, acquisition costs, improvements, and sale proceeds to substantiate the loss in a tax review or audit.

Luovutustappio is a key concept for individuals and businesses engaging in asset disposals, providing a framework for recognizing and potentially offsetting losses within the Finnish tax system.