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Individual Tax Returns. Golf-share.

The prices of golf-shares were dozens of thousands of euro in the 1980’s and in the beginning of the 19th century. Nowadays a golf-share is worth 1 euro. When you sell your golf-share, the financial loss can be several thousand euro. According to the Income Tax Act, financial losses are deductible in your personal taxation.
The tax administration has regarded that golf-shares correspond to your personal property and the loss is not deductible. The administration compares a golf-share to your car and your personal hobby. This is not factual character of golf-shares.
The golf course is maintained by an investment company. The company owns and manages the land and buildings, builds and maintains a golf course, and possibly has other activities too.
By launching ”golf shares” the investment company has acquired equity, and the shareholders have paid several million euro. Thus, the investment company has been able to buy the land etc. In addition to the share capital, the share owners have taken to pay the maintenance costs of the golf course in the form of maintenance costs. The golf share is not a payment for getting to play a golf round.
The basic foundation of the Finnish tax administration’s tax guide ”Profits and losses of property in the taxation of individuals” (Dnro VH/330/00.01.00/2019, dated 31 Oct 2019, sec. 13.3.4) concerning losses related to golf shares is wrong. More information can be obtained from Nikula.