N7 - Takeover of funds (sole proprietorship)

In the N7 appendix you report takeover of funds and allocation amounts. It is located under Year-end closing - Basis for tax return - Tax appendices.

The form must be submitted by the person who took over tax allocation reserves, expansion fund, interest distribution amount, forest account or forest damage account. Both natural and legal persons must submit the form.

You must submit an N7 form for each grantor. However, have you taken over e g both tax allocation reserve and expansion fund from the same person, the information must be provided on a form.

Sole person carrying on business activities

An unlimited taxable natural person who, through inheritance, will, gift or division of joint property, takes over all or parts of a business may, to the corresponding extent, take over the grantor's tax allocation reserve, expansion fund and saved interest distribution amount. If tax allocation reserve or expansion funds are transferred, a written document confirming the transfer must be drawn up. In case of inheritance or will, the recipient must declare in writing that he is taking over the fund or part of the fund. In the event of a gift or division of joint property, both parties must enter into a written agreement on the transfer. This document must not be sent to the Tax Agency, but only be available for possible inspection.

Partners in a Swedish trading partnership whose real assets are transferred upon dissolution of the company may, under certain conditions, transfer the tax allocation reserve and expansion fund to the partner's individual business activities.

It is also possible to transfer the forest account and forest damage account to relatives in connection with the transfer of agriculture with forest land. In point 4, you report taken over forest and forest damage accounts that are not to be taxed with the transferor.

Legal person

A legal person can only take over tax allocation reserve. It can be transferred from sole proprietorships and trading partnerships to a legal person. The tax allocation reserve can also be taken over in the event of a merger and transfer of operations. Expansion fund cannot be transferred to a legal person. On the other hand, it can expire without a taxation effect for a person carrying on business activities if all tangible assets are transferred from the business activity to a limited company. In point 2, limited companies must state the expansion fund that ceased with the sole proprietorship in connection with the takeover of tangible assets.

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