luovutustulo

Luovutustulo refers to the profit realized from the sale or transfer of an asset. In Finnish taxation, it is a category of income that arises from the disposal of property. This can include various types of assets, such as real estate, shares in companies, vehicles, or other valuable possessions. The fundamental principle is that when an asset is sold for more than its acquisition cost, the difference is considered a capital gain and is subject to taxation as luovutustulo.

The calculation of luovutustulo typically involves subtracting the acquisition cost and any directly related expenses from the selling price. Acquisition cost includes not only the initial purchase price but also any improvements or significant investments made to the asset. Directly related expenses can encompass costs associated with the sale, such as brokerage fees or legal charges. It is important to note that specific rules and deductions may apply depending on the type of asset being sold.

In Finland, luovutustulo is generally taxed at a capital gains tax rate. This rate can vary, but it is distinct from income tax rates applied to earned income. The purpose of taxing luovutustulo is to capture a portion of the wealth generated from asset appreciation. Taxpayers are responsible for reporting their luovutustulo to the Finnish Tax Administration (Verohallinto) in their annual tax returns. Proper record-keeping of acquisition costs and sale-related expenses is crucial for accurate reporting and tax calculation.