How many categories on file do you keep for an investment property?
- Thread starter s050399b
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Categories of what - accounts? purchase criteria? hold criteria? 
How many categories on file do you keep for an investment property? None.
Life is too short - I let the accountant do it. They love that kind of stuff. I make more money doing the deal.
Life is too short - I let the accountant do it. They love that kind of stuff. I make more money doing the deal.
One paper file per property. All paperwork sorted in chronological order.
One excel spreadhseet contains for one record for any and all IP related transactions which contains the following information;
property name
transaction amount
expense type
rent
date
supplier/payer
account name where payment came from
PAYG income
PAYG tax paid
Expense types are those generally required to be submitted in the tax return however there is some additional informaiton eg property management fees, PM postage/admin, water rates, council rates, taxes (eg land tax), depreciation, maintenace, interest, bank fees, insurance, body corporate fees, BC special levies, accountancy costs, 'other'.
So at any time during the year, based on a pivot table I can simply see where my tax return is.
The biggest time is setting it up and then doing it every month to update all tranactions only takes 10-15 minutes max.
The next step is to start putting in anticipated & future amounts for all expenses, almost like having an entire years budget. But that's a bit of work
One excel spreadhseet contains for one record for any and all IP related transactions which contains the following information;
property name
transaction amount
expense type
rent
date
supplier/payer
account name where payment came from
PAYG income
PAYG tax paid
Expense types are those generally required to be submitted in the tax return however there is some additional informaiton eg property management fees, PM postage/admin, water rates, council rates, taxes (eg land tax), depreciation, maintenace, interest, bank fees, insurance, body corporate fees, BC special levies, accountancy costs, 'other'.
So at any time during the year, based on a pivot table I can simply see where my tax return is.
The biggest time is setting it up and then doing it every month to update all tranactions only takes 10-15 minutes max.
The next step is to start putting in anticipated & future amounts for all expenses, almost like having an entire years budget. But that's a bit of work
How many categories on file do you keep for an investment property? None.
Life is too short - I let the accountant do it. They love that kind of stuff. I make more money doing the deal.
I thought u need to categories it before sending it to them?
^^ I agree.
Prop, how does your accountant receive the info?
Last time I scanned all receipts & documents and gave it to him on a memory stick.. A folder for each IP.. I've found what's more useful is a print out of bank statements that can filter between interest payments and general expenses.. That combined with the rental statements that lists any repairs etc.
Prop, how does your accountant receive the info?
Last time I scanned all receipts & documents and gave it to him on a memory stick.. A folder for each IP.. I've found what's more useful is a print out of bank statements that can filter between interest payments and general expenses.. That combined with the rental statements that lists any repairs etc.
One paper file per property. All paperwork sorted in chronological order.
One excel spreadhseet contains for one record for any and all IP related transactions which contains the following information;
property name
transaction amount
expense type
rent
date
supplier/payer
account name where payment came from
PAYG income
PAYG tax paid
Expense types are those generally required to be submitted in the tax return however there is some additional informaiton eg property management fees, PM postage/admin, water rates, council rates, taxes (eg land tax), depreciation, maintenace, interest, bank fees, insurance, body corporate fees, BC special levies, accountancy costs, 'other'.
So at any time during the year, based on a pivot table I can simply see where my tax return is.
The biggest time is setting it up and then doing it every month to update all tranactions only takes 10-15 minutes max.
The next step is to start putting in anticipated & future amounts for all expenses, almost like having an entire years budget. But that's a bit of work
I like your system
i like to know where i stand at all times so i think ill follow a system like this. especially till we gain some confidence in what we are doing.... i still feel out of my comfort zone when it comes to properties! did you use a base excel sheet template form somewhere to start off with or did you set it up from scratch?
I like your system
did you use a base excel sheet template form somewhere to start off with or did you set it up from scratch?
Just built it from scratch. Pretty simple really. The only slightly challenging to do (if you haven't done it before) is set up a couple of drop down boxes through Data > Validation....for the expense & property listing categories.
You may only need expense category if you have one or two properties though.
Documents for tax time get filed in an expandable file under the following:
- Managing agents statements (I don't self-manage) - one section for each company
- Property finance - separate tab for each property's bank statements and any new loan statements
- Insurances
- Land Tax
- Rates
- Depreciation reports (if acquired)
- Miscellaneous - All other property expenses and income (if any) - I file all other receipts (not attached to managing statements) here as well as any miscellaneous income eg insurance payout statement. If need be I write a note on the receipts so at tax time they get attached to the right property.
For non-tax documents (eg quotes) I have one plastic folder/envelope for each property and one for paperwork applying to all.
Works for a small portfolio.
- Managing agents statements (I don't self-manage) - one section for each company
- Property finance - separate tab for each property's bank statements and any new loan statements
- Insurances
- Land Tax
- Rates
- Depreciation reports (if acquired)
- Miscellaneous - All other property expenses and income (if any) - I file all other receipts (not attached to managing statements) here as well as any miscellaneous income eg insurance payout statement. If need be I write a note on the receipts so at tax time they get attached to the right property.
For non-tax documents (eg quotes) I have one plastic folder/envelope for each property and one for paperwork applying to all.
Works for a small portfolio.
And me, with the addition of:
Rental Agency Fees
Land Tax
Valuer
Body Corporate Fees
cheers