If you sell a property where your ownership period dates back to 1990 or earlier, you can upwardly adjust (increase) the acquisition value, upgrades, or acquisition costs from 1990 or earlier. For properties where your ownership period dates back to 1991 or later, you cannot upwardly adjust according to these rules.

If the property has been acquired over several years, or the property has been upgraded in 1990 or earlier, each year's supplement must be upwardly adjusted separately. For example, if you upgraded your residential property for NOK 50,000 in 1985, you must upwardly adjust this amount with the rate for 1985. See the table below. 

The sum of the upwards adjustment of the acquisition value, upgrades or other acquisition costs cannot result in you incurring a loss on the sale but only reduce or remove any gain.

Table

Acquisition value, upgrades, and other acquisition costs that must be upwardly adjusted with a percentage increase:

Acquisition year	Percentage rate for upwards adjustment	Acquisition year	Percentage rate for upwards adjustment
1990	3	1967	200
1989	6	1966	210
1988	10	1965	220
1987	16	1964	230
1986	22	1963	240
1985	28	1962	250
1984	36	1961	260
1983	42	1960	270
1982	50	1959	280
1981	60	1958	290
1980	70	1957	300
1979	80	1956	310
1978	90	1955	320
1977	100	1954	330
1976	110	1953	340
1975	120	1952	350
1974	130	1951	360
1973	140	1950	370
1972	150	1949	380
1971	160	1948	390
1970	170	1947	400
1969	180	and earlier	400

 

Example

Ola sells a residential property for NOK 1,050,000. The estate agent expenses were NOK 25,000. He bought the property in 1979 for NOK 500,000. He had expenses related to the purchase (stamp duty, registration fees) amounting to NOK 10,000. In 1985, he also had expenses related to upgrades amounting to NOK 50,000. Ola has not used the residential property for at least one year out of the last two years, and the gain is therefore taxable.

All amounts are in NOK

Sales price			1,050,000
	Expenses for the estate agent, advertising, etc.		−  25,000
	Purchase price/acquisition value 1979	500,000
	Upwards adjustment for 1979 - 80%*	+ 400,000	−  900,000
	Upgrades in 1985 **	50,000
	Upwards adjustment for 1985 - 28%	+ 14,000	−  64,000
	Other purchase and acquisition costs in 1979	10,000
	Upwards adjustment for 1979 - 80%*	+ 8,000	−  18,000
Taxable gain			= 43,000

 

*) For 1979, the purchase price and other purchase costs must be upwardly adjusted with 80 percent. As a result, the purchase price will be increased by NOK 400,000 (500,000 x 80 percent), while other purchase costs will be increased by NOK 8,000 (10,000 x 80 percent).

**) The upgrade was carried out in 1985, and the rate for upwards adjustment for this year is 28 percent. As a result, the upgrade will be increased by NOK 14,000 (50,000 x 28 percent).

The gain of NOK 43,000must be stated in the tax return for the year of sale and will be taxed as ordinary income at 22 percent, which, in this example, results in a tax on the gain of NOK 9,460.