What are business loss deductions?

There are basically two different scenarios for when you can claim the deduction. The first is if you have started a business by yourself or with others and then had to close it down later. For example, in the last couple of years there has been a wave of people starting their own business, partly because of the low cost of starting an IVS. But now that IVSs are no longer allowed, people have had to either close it down or convert to an ApS. For all those who have closed down the company, there is good news - it entitles you to a deduction.

The second scenario is if you bought into a company and later sold your shares at a lower price than you bought them for. In this case, you have incurred a loss on your shares and you can claim a tax deduction for this. It is important to note that this does not apply to listed companies, as such losses are typically reported automatically by the stock exchange.

The deduction itself is the money you have lost. In other words, if you start a company by investing DKK 40,000 and it goes bankrupt, this is roughly speaking your deduction. However, you must be very aware of the conditions that apply to the deduction as described below.