Acquisition value when you've inherited or received the property as a gift
Applies for you who inherited or received a property as a gift and applies also for decedent’s estate.
Select the option that applies to you:
Your acquisition value depends on whether or not the deceased person or donor could have sold the property tax free.
Whether the decedent or donor could have sold tax free depends on the type of property and its use.
- Residential property, commuter accommodation with naturally arranged plotordforklaring– if the deceased person or donor owned the property for more than one year and used it as their own residence for at least one of the last two years at the time of death or gifting, the deceased person or donor could have sold it tax free.
- Holiday home with naturally arranged plotordforklaring– if the deceased person or donor owned the holiday home for more than five years and used it as their own holiday home for at least five of the last eight years at the time of death or gifting, the deceased person or donor could have sold it tax free.
How to find the acquisition value when the deceased person or donor:
Your acquisition value must equal the market value at the time of death or gifting if the deceased person or donor could have sold the property tax free at that time. This is called discontinuity.
Where to find the acquisition value
- If the property is sold shortly after the time of inheritance or gifting, the value at the time of inheritance or gifting will usually be equal to the sale price.
- You can find this value in an appraisal or valuation by a valuer or real estate agent.
- You can refer to the value at the time of inheritance or gifting for comparable properties or price statistics for the area where the property is located.
Is there a significant difference between the sale price and the appraisal/valuation?
You need to assess whether there has been an increase or decrease in the market value of the property between the time of death or gifting and the sale.
You must be able to explain changes to the property or in the property market in the area where the property is located that result in changes in value. Such changes could include landslides, fires, development plans in the area, and similar events.
If you sell a share in a housing company or jointly owned property
For a share in a housing company or jointly owned property, the market value is:
Deposit
+ The property's share of joint debt
− The property's share of joint wealth
= Market value
You inherit the deceased person or donor's acquisition value when the deceased person or donor could not have sold the property tax free at the time of death or gifting. This is called continuity.
Calculation of gain or loss on sale
You must use the acquisition value of the deceased person or donor when calculating the gain or loss on the sale of the property. You must be able to provide proof of or substantiate the acquisition value if we ask you to do so.
Inherited or received a share in a housing company or jointly owned property as a gift
You should use the deceased person or donor's deposit as a starting point and add the property's share of joint debt and subtract the property's share of joint wealth as at 31 December the year before the acquisition year for the deceased person or donor.
You can request these figures from the housing company/building association or use figures from the original purchase documents.
Upwards adjustment – property owned in 1990 or earlier
If you’re selling a property that the deceased person or donor owned in 1990 or earlier, you can upwardly adjust the acquisition value.
Where can you find the acquisition value?
If the deceased person or donor purchased the property, you can find the acquisition value in the deceased person or donor's purchase contract or deed.
You inherited a property from your mother, who died in 2014. Your mother could not have sold the property without being subject to tax at the time of her death, and you therefore take over your mother’s acquisition value (continuity).
Your mother bought the property on 17 September 1997 for NOK 600,000. She had additional costs on the purchase amounting to NOK 15,750.
|
your mother’s purchase price in 1997 |
NOK 600,000 |
|
+ purchase expenses (additional costs) |
NOK 15,750 |
|
= acquisition value 1997 |
NOK 615,750 |
|
= your acquisition value |
NOK 615,750 |
If the deceased person or donor built the buildings on the property, you can find the acquisition value for the land in the deceased person or donor's purchase contract and in the construction accounts for the building.
You inherited a property from your mother, who died in 2014. Your mother could not have sold the property without being subject to tax at the time of her death, and you therefore take over your mother’s acquisition value (continuity).
Your mother built the property in 1997 for NOK 500,000. She paid NOK 100,000 for the plot. The cost of the plot and the building was NOK 600,000. She had additional costs on the purchase amounting to NOK 15,750.
|
mother’s cost price for the plot and the building in 1997 |
NOK 600,000 |
|
+ purchase expenses (additional costs) |
NOK 15,750 |
|
= mother’s acquisition value 1997 |
NOK 615,750 |
|
= your acquisition value |
NOK 615,750 |
If the deceased person or donor, from whom you took over the property, also inherited or received the property as a gift in 2014 or later, the acquisition value depends on whether the previous deceased person or donor could have sold the property tax free or not.
Such an assessment may occur in several stages for properties that have been inherited multiple times.
Examples:
When the previous deceased person/donor and your deceased person/donor could not sell the property tax free at the time of death/gifting, you inherit the acquisition value that the previous deceased person/donor had for the property.
Example: The acquisition value when the deceased person/donor could not have sold the property tax free:
You inherited a property from your mother, who died in 2018. She could not have sold the property tax free at the time of her death, and you therefore inherit your mother’s acquisition value (continuity).
Your mother inherited the property from her father (your grandfather) in 2014. Your grandfather’s acquisition value was NOK 100,000 in 1993. Your mother incurred costs of NOK 10,000 when taking over the property from your grandfather.
You must find out if your grandfather could have sold the property tax free at the time of his death.
Let's say your grandfather had rented out the property for several years until he died. Therefore, your grandfather could not have sold the property tax free at the time of death.
Since your grandfather could not have sold the property tax free when he died, your mother inherits the acquisition value from your grandfather. You inherit your mother’s acquisition value.
Mother inherits her father's (your grandfather's) acquisition value:
NOK 100,000
+ Your mother’s costs for taking over the property from her father (your grandfather)
NOK 10,000
= Your mother’s acquisition value
NOK 110,000
You inherit your mother’s acquisition value:
NOK 110,000
+ Your costs for taking over the property from your mother:
NOK 15,000
= Your acquisition value:
NOK 125,000
If your deceased person/donor could not have sold tax free, but the previous deceased person/donor could have sold the property tax free at the time of death/gifting, your acquisition value must be set to the estimated market value at the time of death/gifting of the previous deceased person/donor.
The determination of an estimated market value at the time of the previous deceased person/donor's death/gifting must be proven upon request.
Supporting documentation can include:
- appraisal
- price estimate by a valuer/estate agent
- prospectus/price estimate of similar properties
Example: The acquisition value when the deceased person/donor could sell the property tax free:
Since your grandfather could have sold the property tax free at the time of his death, you mother’s acquisition value must match the market value at the time of her father’s death. The market value was NOK 400,000 when your mother inherited the property. You inherit your mother’s acquisition value.
You inherit your mother’s acquisition value:
NOK 400,000
+ Your mother’s costs for taking over the property from her father:
NOK 10,000
= Your acquisition value:
NOK 410,000
If the deceased person or donor inherited or received the property as a gift in 2013 or earlier, the acquisition value of the deceased person or donor is the property's estimated market value at the time of death/gifting.
If inheritance tax was calculated, you can find the acquisition value in the decision on inheritance tax. The acquisition value must be set to the market value but not higher than the inheritance tax basis.
You can also find this information in the Norwegian Mapping Authority’s land register (in Norwegian only) or you can search in the Digital Archives, which is the old land register self-service solution for registrations from before 1991.
Are you uncertain about what applies in your situation?
The property's acquisition value is the estimated market value, obtained from an appraisal or valuation, at the time of death or gifting.
For a share in a housing company or jointly owned property, the market value is:
Deposit
+ The property's share of joint debt
− The property's share of joint wealth
= Market value
Please note that the amount cannot be set higher than the amount that was used in the inheritance tax calculation or gift notification. You can find the inheritance tax basis in the decision you received regarding inheritance tax in connection with inheritance or gift.
Increase (upwards adjustment) of purchase price or acquisition value – property owned in 1990 or earlier
If you sell a property where the ownership period is in 1990 or earlier, you can upwardly adjust the acquisition value. This can result in lower taxes.
Special rules apply for farm properties - Read more if you’ve inherited or received a gift.