4 ms·

I Denmark there are so many difference taxes. The most unfair of them all is "lejeværdi af egen bolig" which directly translates to "Rental value of your own ho

I Denmark there are so many difference taxes. The most unfair of them all is "lejeværdi af egen bolig" which directly translates to "Rental value of your own house". Short version. Had you chosen to rent out your house to someone else instead of living there yourself, you would have made a profit". You have to pay taxes on that value. "But, hey stop wait a minute", you might say. "I am not renting out my house. I am actually living there all by myself." Well sorry, that is irrelevant. You still have to pay taxes of that imaginary profit regardless if you live there or not. The tax rule (in Danish) https://tax.dk/jv/ch/C_H_3_2_2_2_3.htm https://tax.dk/jv/ch/C_H_3_2_2_2_3.htm WTF? Yes, WTF but true.

jacquesm 7y ago
Same in NL: Huurwaardeforfait.
- reallydontask 7y ago
  is this on top of property taxes? What's the rationale?
  - averros 7y ago
    Politicos and their big business pals want to steal more of their subject's money. That's more than sufficient rationale for them. In fact, every other "rationale" for taxes is B.S.
  - yonran 7y ago
    Landlords have to pay income tax on the rent. If owner-occupiers didn’t pay tax on the imputed rent, then the owner-occupier would pay a lower income tax than the landlord+renter. In effect, the implicit tax deduction that owner-occupiers get on imputed rent in US Income Taxes is a regressive tax on the renter+landlord. See also this explanation: https://www.vox.com/2016/4/15/11432676/imputed-rent-taxation https://www.vox.com/2016/4/15/11432676/imputed-rent-taxation
    - reallydontask 7y ago
      thanks for this. At first blush, this sort of tax would seem to disincentivize home ownership but all countries listed on the article apart from Switzerland have higher rates than the UK/US. Curiously, article doesn't mention Denmark, which does have slightly lower rates than UK/US. https://en.wikipedia.org/wiki/List_of_countries_by_home_ownership_rate https://en.wikipedia.org/wiki/List_of_countries_by_home_owne...

jacquesm 7y ago

Same in NL: Huurwaardeforfait.

reallydontask 7y ago
is this on top of property taxes? What's the rationale?
- averros 7y ago
  Politicos and their big business pals want to steal more of their subject's money. That's more than sufficient rationale for them. In fact, every other "rationale" for taxes is B.S.
- yonran 7y ago
  Landlords have to pay income tax on the rent. If owner-occupiers didn’t pay tax on the imputed rent, then the owner-occupier would pay a lower income tax than the landlord+renter. In effect, the implicit tax deduction that owner-occupiers get on imputed rent in US Income Taxes is a regressive tax on the renter+landlord. See also this explanation: https://www.vox.com/2016/4/15/11432676/imputed-rent-taxation https://www.vox.com/2016/4/15/11432676/imputed-rent-taxation
  - reallydontask 7y ago
    thanks for this. At first blush, this sort of tax would seem to disincentivize home ownership but all countries listed on the article apart from Switzerland have higher rates than the UK/US. Curiously, article doesn't mention Denmark, which does have slightly lower rates than UK/US. https://en.wikipedia.org/wiki/List_of_countries_by_home_ownership_rate https://en.wikipedia.org/wiki/List_of_countries_by_home_owne...