With settlement for my first IP in the near future i have decided to set up my office.I am now looking at some empty shelves and a empty filing cabinate and im not sure of the best way to set everthing up. Is there any info anyone wants to pass on for a simple set up to keep my records,docs,receipts etc. Also what else should i record.Maybe things like tenants details. What do you guys think.
Get a folder for each property and for each year. File all records for the year in that folder then put it away.
Don’t make the mistake of keeping all rates together, bank statements together etc etc.
You will always sort this info by property and by year – esp for tax so file it the same way.
There are some neat little binders at officeworks with elastic bands to close them and keep loose papers inside. These are perfect.
Once again, one per property per year. Label it in big texta letters!
Use something like Property Manager Pro to do IP tax statements and pass these to your tax agent – the folders can just go away in archive boxes until they are needed.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The following is an extract of our “Record Keeping” document off our website:
We suggest you keep the following records for each investment property:
• Permanent File
• Annual Financial year file
Need more help? Go to our Frequently asked questions
Permanent File
We recommend a Lever Arch file separated into the following sections:Legal – Copy Contract, Settlement Statement, property searches etc
Finance – Mortgage and other financial documents
Feasibility Study – Research data including photographs and advertising material.
Capital Gains – Records of any capital improvements made.
Rental – Contract for appointment of Property Manager, copy Lease, Condition Report and Bond details
Sundry – Any other relevant detailsAnnual Financial Year File
To prepare your tax return, your Accountant will require extensive information. You can collate this yourself, or alternatively, take advantage of our $imple, free downloadable Excel spreadsheet to assist you step-by-step.
We recommend you keep all the documents that your accountant will need in a manilla folder, split into the following sections:Front Cover – Owners, property, dates.
Inside front cover – Date first rented, number of weeks rented and available.
Gross Rent – Agents statements with a Summary stapled to the front.
Bank – Monthly bank statements.
Loan – Monthly loan statements with a Summary stapled to the front.
Diary notes – Details of stationery, telephone calls, faxes and postage
Motor Vehicle – Number of km travelled to inspect and manage the property (maximum of 5000 km)
Other – If you sell the property, include all relevant documentation, including legal documents.
Expenses – Summarise all expenses for the financial year in a Spreadsheet in date order.
Hand the completed documents to your Accountant to finalise your tax return
TopFrequently asked Questions
Q: Do I need a separate bank account?
A: Yes, you will require a separate bank account for property investment purposes. Take care not to mix your personal expenditure with that relating to your property investments, as this can cause many problems and may ultimately affect the amount you are able to claim for your property investments.Q: Where do I keep my receipts?
A: If you have one or two properties then a “zip lock†bag for receipts may be adequate. However if you have undertaken a renovation or have multiple properties then a filing cabinet or an expanding pocket file may be required. Those with large property portfolios may also need specialist accounting software to manage their affairs – see your AccountantQ: What expenses can I claim?
A: Including, but not limited to:Advertising
Body Corporate fees
Cleaning
Council Rates
Gardening
Insurance
Interest
Land tax
Legal fees relating to tenants
Pest Control
Property Management fees
Motor vehicle per km
Repairs and maintenance
Stationery, phone and postage
Travel and accommodation
Decline in value (Your Accountant will calculate this)You can also download a free Excel spreadsheet to help keep track of receipts, expenses & loans.
http://www.propertydivas.com.au/3TaxMang/TaxMan.aspxAmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
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