7H Rental income, rental apartments – Instructions
Use this form to report any rental income earned from renting out an apartment in a housing company. 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 apartment, 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.
If you have several apartments rented out, report the rental income and the related expenses for each of your buy-to-let properties separately. A single form has fields for reporting the rental income and other details of two different apartments. Fill in as many forms as needed to report information on more than two apartments.
When do I need to report rental income?
Report rental income as soon as you start renting out the apartment. 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 process 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, fill in the rental income and details of all the apartments in a housing company on this form. To correct information submitted previously on the pre-completed tax return or to claim for adjustment, report all the information about the apartments in a housing company and the 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 Apartment in a housing company
At the beginning of this section, fill in the following information:
- details about the housing company and apartment: the name and Business ID of the housing company or real estate holding company, and the apartment number
- details about the party to whom the apartment is rented: name and personal identity code/Business ID of the tenant
- the tenancy period
- your share of ownership in the apartment (%).
Were there several tenants or tenancy periods during the year?
If you had more than one tenant in the apartment during the year, leave the field “Personal identity code or Business ID of the tenant” empty. Instead of giving the tenant’s name, write “several”.
If you did not rent out the apartment for one continuous period but for several periods during the year, the tenancy 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 anything, such as expenses. If you are a co-owner of the apartment, sharing ownership with your spouse, for example, report only your portion of the rental income.
2.2 Monthly maintenance charges and water charges paid per year (only your share): Report the monthly maintenance charges and water charges paid. Report only the portion of expenses relating to rental income equal to your share of ownership.
Deductible monthly maintenance charges include maintenance charges and capital charges (charges for repairs and capital costs) recorded as income (recognised as revenue) in the housing company's books. Do not report charges placed in reserve, as they are not deductible from rental income. Information about whether charges are recorded as revenue or placed in reserve is available from the housing company – ask the building manager, for example.
If you have taken out a loan to purchase the apartment, 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.
2.3 Other costs per year (only your share): Report other costs relating to rental income, such as the costs of the apartment's annual repairs. Only renovation costs that are incurred while a property is let can be deducted. Report the costs as expenses for the year during which they were paid. Report only the portion of expenses relating to rental income equal to your share of ownership.
You can also report the apartment's modernisation costs if you want them to be deducted from the rental income based on straight-line depreciation over a 10-year period. Alternatively, you can deduct the modernisation costs from the capital gains when you sell the apartment.
2.4 and 2.5: Calculate and report the amount of taxable rental income, i.e. the difference between rental income and the related expenses: subtract the amounts entered in fields 2.2 and 2.3 from the amount entered in field 2.1. If the difference between income and expenses is positive, enter the amount of profit in field 2.4. If the expenses are higher, i.e. the difference is negative, enter the amount of loss in field 2.5.
Date and sign the form. Also give your daytime telephone number.