Recording IP Expenses

Hi
I would like to add…
how do you do that for a buy, reno & sell?
also how do you do that for multiple buy reno sells?

TroynBec

The ducks are flying closer to home!!!!

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First set yourself up a permanant lever arch file which you’ll keep details of the purchase, bank loans, legal papers, and any capital improvements made on the property. A set of photo’s is also good to record what the property looks like in case of insurance problems or to show “before” and “after” work.
To keep it easy open a bank cheque account exclusively for this property. If you buy anything yourself with cash or on mastercard write yourself out a cheque (keep receipt) and reimburse yourself. That way you’ll have all the expenses in one spot. Second record income/expenses in an annual tax file for your Accountant. If you only have one ip I’d just stick with a spreadsheet like Excel or Lotus. Have a “Total” column and then to the right dissect expenses into categories (Insurance, repairs, body corp, cleaning etc.) Add them all up and make sure they cross add. With any repairs make sure you provide as much detail as possible so your Accountant can determine if its claimable as a repair or a capital improvement to the property.
So you don’t loose the receipts buy an expandable folder and file receipts in month order Jul 2005 to 30 jun 2006.
If you can’t get access to spreadsheet software just buy a journal book rule up the lines yourself and then stick any receipts in the back of the book.
Easy !!

Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”

Hi lbglen,

Coincidentally, just finished making up a simple xcel spreadsheet for myself for exactly the same purpose that you are after, maybe similar to Terry’s. Also, I agree with Terry and AmandaBS about paper records, I do the same.

If you want a copy of my spreadsheet, I can email it to you. Not sure how all that works, doesn’t look like you can add attachments to public posts or to emails sent from this site – looks all a bit to difficult to work out

regards,

Paul

Terry – I’ll show you mine, if you show me yours ! – just got to work out how this emailing attachments through the site works

Further to my earlier post I forgot to mention that your PM will give you monthly rent statement which you need to keep. At the end of the financial year your PM should provide you with a summary of rent and any deductions.(Give to your Accountant)
Also you may be eligible to claim some motor vehicle expenses if you used your car to visit the property or carry out work for whatever reason. You dont need a log book or to have kept your car expenses providing your claim is under 5000klm. You just need a reasonable estimate. Every little bit helps. For further details here’s the ATO link
http://www.ato.gov.au/individuals/content.asp?doc=/content/33874.htm

Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”

Hi Lbglen

For the only IP I have had so far and it wasn’t through a trust unfortunately, I had a spreasheet that took care of all my tax with columns for the IP.
I had a separate account for rent reciepts and expenditure and kepp all other doco in manila folders in the filing cab.
As long as you keep it all together, tax time will be a whole lot easier.

My plan with the next round it to do something similar and keep files on each one.

As Derek says keep it simple, but keep all the records.

Regards
Sue

Hi,

This is a very important and overlooked issue by many. Obviously when portfolios get larger ie over 10 properties then it may be a bit crazy around tax time.

Talk to your accountant and find out how much extra the full accounting and book keeping service is. You may be surprised at how cheap it is. Just send them all the receipts and docs and it is done for you at the end of the year.

The cost is of course deductible.

If you are going to do it yourself the trick in not in the wizbangery of the program you use. The trick it regularly and consistently imputing the data.

regards,

Don

Hi, this is a good topic.

I have my own idea when it comes to keeping records.
Every year I purchase a new green Collins A 60 series Money Book. I then section it of with tabs for each property and one extra for stationary. Each section has the following headings.
Date, Travel, Phone call, Rates, B.Corp, Manager, Interest, Misc, Rent.
When my property statements, bank statements, or what ever arrive it takes only a few seconds to jot them down in the book. I then at my own leisure once every few months when I’ve nothing better to do enter it into a spread sheet. But my accountant says that I don’t need to as my money book is more than adequate. I Also have an expanding file for each property and stationary for receipts.