TOTALACCOUNTING

PROPERTY RENTAL BUSINESS ACTIVITY

 

Total Accounting, Chartered Accountants offer as part of their services assistance to their clients with  property rental investments and business activity and would be happy to assist you in your subsequent accounting and taxation requirements relating to this.

The following Documentation includes the detail we will require to assist in this regard.  Read the articles below this relating to Property Rental Business Activity.

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BUSINESS DOCUMENTATION REQUIRED FOR PREPARATION OF FINANCIAL STATEMENTS FOR RENTAL PROPERTY BUSINESS

Print off this document and check that you have all the financial documentation below   (if appropriate to your situation). Tick in the right hand column to satisfy yourself that you have obtained or prepared it.

 

1.   PREVIOUS FINANCIAL STATEMENTS  

If you are a new client and have previously been in business the Financial Statements from the previous year.  

2.   BANK STATEMENTS

For all business Bank Accounts and for the full period.  Please check you have them all and if not order missing copies.  

3.   CHEQUE BOOKS FOR YEAR

For all the bank accounts operated by the business for the whole year.   If  business payments  this should be noted.  

4.   CASH BOOK IF YOU HAVE PREPARED ONE

This should have separate sections for Cash Receipts  and Cash Payments and analyse the Receipts and Payments to  income and cost categories.   All items on your business Bank Accounts for the period should be itemised.  If you have more than one property break this down to individual property.  

5. BUSINESS ITEMS NOT PROCESSED THROUGH BUSINESS BANK ACCOUNTS (PAYMENTS)

 If you paid for business related costs out of pocket and not from your business Bank Account, or you don’t have a specific Business Bank Account,  you please provide a list which shows as below. If you have more than one property break this down to individual property.  

Date

Purchased From

Cost Category

Amount

 

 

 

 

 6.  SOLICITORS DOCUMENTATION PACKAGE FOR ANY ACQUISITIONS OR SALES

If you have purchased or sold Properties during the year the full Solicitors Package relating to these transactions.  

7. LOAN STATEMENTS

Provide all the Loan Statements relating to the Property Rental (in Bank Statement format) for the whole year.  

8.  RELATING TO YOUR RENTAL INCOME RECEIPTS

Provide a Summary of your information as to the Property Rental receipts during the year.   If you have more than one property break this down to individual property.

 

 

 

 

 

9.  YOUR SUPPLIERS INVOICES

The Invoices you have collected from Suppliers relating to your payments for the period.  

The following are cost types which are, if related to the Property Rental property, are allowable as expense deductions:  

Interest- you can only claim interest on the loan taken out for the specific purchase of the rental property  

Borrowing costs- associated Legal fees , Loan Broker charges, Finance Institution Bank Charges to obtain the finance  

 Legal fees- you can claim Legal fees incurred in arranging a purchasing or selling a property, arranging loan finance for the rental property, arranging  a Tenancy Agreement, collecting Bad Debts  

Rates  

Insurance- on property, furniture and effects, mortgage repayment

Motor Vehicle and other Travel- for Motor Vehicle Expenses the appropriate record is usually a list of trips made in relation the Rental Property and with columns “Date:, “Trip To/ From”. “Reason for Trip”, Kilometres Travelled” kept for the whole year and with detail on a line by line basis, as costs can be claimed on a kilometer rate basis.  

Letting Agent’s fees and Commissions  

Depreciation  

Repairs and Maintenance  

Accounting fees  

Bank Charges on property rental Bank Account  

Postage  

Printing & Stationery  

Landlord/ Property Investor Membership Fees Association, Property Investors, related Magazine Subscriptions  

Related Magazine Subscriptions  

Gardening, Lawnmowing , Mower Fuel

Tenancy, Tribunal Court costs associated with Tenancy Dispute  

Cleaning  

Advertising for Tenants  

Telephone costs  

Heating and Cooling . Power Costs  

Use of Home if you have a specific and exclusive area associated with the rental business  

any other relevant costs  

   

10. ALL CORRESPONDENCE WITH IRD

-  current year IR3 Personal, IR4 Company, IR6 Trust, IR7 Partnership Income Tax Returns and Summary of Earnings Forms if you were not on our agency list and received these direct.

-   any other correspondence with IRD.  

 

 

 

 

11.  ACCOUNTS RECEIVABLE (SUNDRY DEBTORS)

Please prepare a list of amounts for any Rental Income owed to you by your Tenants at balance date with the following columns:  

Ternants Name

Rental Property Address

Amount

 

 

 

-   indicate any amount which you consider unlikely to receive payment for.  

12. ACCOUNTS PAYABLE (SUNDRY CREDITORS)

Please prepare a list of amounts which you have received Supplier’s Invoices for as at balance date and are owing by you at balance date with the following columns:  

Creditor’s Name

Type of Cost (What for)

Amount

 

 

 

13.  INTEREST INCOME

Please provide the Statement received the bank or other financial institution indicating:

-   Gross Income.

-   Resident Withholding Tax deducted.

Ensure that you provide this from all institutions from which you received interest income.  

14.  DIVIDEND INCOME

Please provide the Dividend Remittance advices received for the Dividend Issuer.   Ensure that you provide all Dividend Remittance advices for the year.

15.  ANY OTHER OTHER INCOME WHATSOEVER

This could include:

-   Distributions from a Trust.

-   Income / Losses from other business activities for which TotalAccounting are not preparing Income Tax Returns.

-  Profits/ Losses from any  Partnership you are a partner in and for which McLean and Co are not preparing Income Tax Returns.

-  Profits/ Losses from any  Look Through  Company you are a shareholder in and for which TotalAccounting are not preparing Income Tax Returns.

-   Shareholders Salaries / Dividends attributed from other Companies you are a shareholder in and for which TotalAccounting are not preparing Income Tax Returns.

-   any other taxable income whatsoever.  

16.  INCOME PROTECTION INSURANCE PAID

If you paid for Income Protection Insurance this may be claimable as an Expense on your Personal Income Return, Bring the year end Statement showing the amount paid and the details of what the payment is for from the organisation you deal with in this regard.

 

 

 

Residential Rental Property- Features and Taxation

The Four Ways to make Profits in Property

To Invest in Commercial or Residential Property?

Property Development

Rental Property Income and Expenses

Typical Property Investment Structures

Beating a Housing Bubble

What is an LAQC?

Taxation Requirements and Keeping of Financial Records for Rental Properties

Depreciation

Obtaining a Business Loan- Key Steps

Building up Wealth through Investing in Property 

Fixed or Floating Mortgages?

Principal and Interest Debt or Interest Only?

Negative Gearing

Rental, Capital and Total Yields

Capital Growth vs Rental Returns

12 Steps to Save on your Mortgage

Taxation on Land Transactions

The In's and Out's of Buying A Home at Auction

Obligations of a Landlord

Obligations of a Tenant

Selecting a Property Manager

 

 

TotalAccounting provides an accounting and taxation service to a number of property investors.  If we can assist you, please contact us.

 

If we can assist further, please email TotalAccounting as follows:

 CONTACT TOTALACCOUNTING BY EMAIL BY CLICKING ON THIS LINK

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