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  1. #1
    Join Date
    May 2008
    Location
    Torbay, Auckland
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    3,938

    Default Maintenance Expenses

    Do you have to identify which house this relates to at all.

    Say you have 4 houses, do you have to say what house each maintenance expense relates to ?

  2. #2
    Join Date
    Oct 2003
    Posts
    3,578

    Default

    If queried by the IRD you would have to prove the expense was in relation to the rental properties. Not sure the best way to do that.

    But if the expense was for a granite bench top, and the only granite bench top the IRD can find is in your PPOR, you have have difficulties.

    But if you never get audited, you dont have to prove anything.

  3. #3
    Join Date
    May 2008
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    Torbay, Auckland
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    Default

    No no not trying to get sneaky like that... LOl

    Just want to know if I should record this on my paperwork or not.

    Some maintenance expenses for example relate to properties before they were rented.

    And others are for properties already rented.

    If they show up as expenses for the portfolio no problem, but if they are for a property that I have advertised for rent but dont have tenants in, then some of these may be viewed as capital expenses ?

    So I need to document that they relate to the existing property, or I might have problems.

  4. #4
    Join Date
    Nov 2008
    Location
    Karratha WA
    Posts
    1,444

    Default

    For your own records it is helpful to see which properties cost heaps to maintain. Capital expenses may affect depreciation (maybe not soon!).

    I use quickbooks which has classes, so I can view a report for each property. Surprisingly, the one I thought would have less maintenance is the expensive one. Some also have much higher rates, in my case one has no water meter so the rates are higher. Also different council areas charge different amounts.

    If you can find a way to seperate each property income & expenses you will find it interesting in heaps of ways. You will find out your best & worst properties may be different to those you thought. This is useful knowledge.

  5. #5
    Join Date
    Jun 2004
    Posts
    10,598

    Default

    Quote Originally Posted by Bluekiwi View Post
    No no not trying to get sneaky like that... LOl

    Just want to know if I should record this on my paperwork or not.

    Some maintenance expenses for example relate to properties before they were rented.

    And others are for properties already rented.

    If they show up as expenses for the portfolio no problem, but if they are for a property that I have advertised for rent but dont have tenants in, then some of these may be viewed as capital expenses ?

    So I need to document that they relate to the existing property, or I might have problems.
    I note the property it applies to in the cash book (running account) and also note it on the receipt.

  6. #6
    Join Date
    May 2008
    Location
    Torbay, Auckland
    Posts
    3,938

    Default

    Am doing this, but dont have to do I ???

    As early on I wasnt doing it at all

  7. #7
    Join Date
    Jun 2004
    Posts
    10,598

    Default

    Quote Originally Posted by Bluekiwi View Post
    Am doing this, but dont have to do I ???

    As early on I wasnt doing it at all
    I would expect you would have to have some proof as to what was maintained. There must be some traceability in case there was an audit.

  8. #8
    Join Date
    Dec 2004
    Location
    Beautiful Waitakere Ranges
    Posts
    519

    Default

    If I hire tradespeople to carry out maintenance then the invoices usually contain the address of the property where the work was done.
    But if I buy the materials and do the maintenance myself then I suppose it's nearly impossible to prove. What I write on a receipt is only useful for my own records, it will not prove anything. Of course specific items such as a stove can be physically located later, but how do you prove where for example a bucket of paint or box of nails was used?
    And going back to the stove: You must keep records for 7 years, during which you might replace an item multiple times. I wonder how it is then possible to account for an item which has later been replaced with another.
    High resolution Fractal Art on quality canvas: www.FractalArt.co.nz

  9. #9
    Join Date
    May 2008
    Location
    Torbay, Auckland
    Posts
    3,938

    Default

    I was also interested in the timing of expenses for multiple properties.

    If you paint rooms in a house you just bought to get ready for renting, this isnt maintanance is it, but more a capital expense.

    But if you had another rental already being rented you could tie it to that property.

    Another reason to use the same colour on all your properties ?

  10. #10
    Join Date
    Jun 2004
    Posts
    10,598

    Default

    Quote Originally Posted by Bluekiwi View Post
    I was also interested in the timing of expenses for multiple properties.

    If you paint rooms in a house you just bought to get ready for renting, this isnt maintanance is it, but more a capital expense.

    But if you had another rental already being rented you could tie it to that property.

    Another reason to use the same colour on all your properties ?
    But that would be dishonest!


 

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