Repairs & Maintenance without receipts....

[AshleyS]

I am going to have some repairs, maintenance and painting done on the IP before a set of tenants moves in.

The guy I will be using to do the work does not issue receipts, not because his work is not good (friend of a friend) but I am guessing that cash is better in his particular situation.

My question I guess is.... Can I still claim these expenses without receipts. I think I know the answer but thought I would ask just incase.

Thanks
Ash

 

[Rixter]

You should be asking your tax accountant.

 

[AshleyS]

Thanks Rixter, I will check with him.

Has anyone else been in a similar situation?

As it is a friend of a friend, I would rather pay them the money than someone I do not know but there is the tax implications i.e. me not claiming the costs without receipts.

 

[Token Funder]

I guess the down-side of supporting tax evasion is that you don't get a receipt or, as a consequence, your own tax deduction.

 

[depreciator]

No receipt = no proof of payment.

So rather than get a tax deduction, you'll get a warm and fuzzy feeling from helping a friend of a friend.

I pay people cash on occasions and get a discount, but I still ask for a receipt.

I am going to have some repairs, maintenance and painting done on the IP before a set of tenants moves in.

Oh, and if you have just bought the place and are doing this work before your first tenants move in, it's not 'repairs and maintenance' anyway.

Scott

 

[AshleyS]

Thanks Scott. The work will be done whilst the property is available for rent. It will be vacant and on the market so I guess I could still claim if I was going to get a receipt??

As for tax evasion, mmmm, not sure. He is an older retired bloke who just does odd jobs for friends, no business or regular work, just helping friends out. It makes me feel better giving him the money

 

[depreciator]

Thanks Scott. The work will be done whilst the property is available for rent. It will be vacant and on the market so I guess I could still claim if I was going to get a receipt??

If you have only recently bought the property, you can't claim work you do to it as 'repairs/maintence'. You can only claim for repairs after you have been renting the place out for a while because you are rectifying problems that have arisen during the rental period. Work done soon after settlement would be classed as an 'improvement'.
Scott

 

[granev]

Glad it makes you feel good Ash !

If he is doing work for my home , no big deal about a reciept

If he is doing work for your business (ie IP) you need a reciept if you want to claim , which you do.

If you are in , say , the 30% tax bracket , the friend of a friend would need to be doing the job 30% cheaper than someone else who is prepared to give a reciept to make it a viable option.

Otherwise it is costing your business (ie IP) money.

I would suggest just use the guy if you need work done at home

 

[Rob Williams]

If you're on an ITWV and you're only paying around 5-8% flat rate tax, then the tax issue isn't a deal breaker.

 

[Rob G.]

I would suggest just use the guy if you need work done at home

And you won't get any guarantees from his insurance, professional association or from any court for work that "never happened".

Cheers,

Rob