Applicable date for allowable expenses against rental income

H

hippy1975

Registered User
Messages
271
Quick question that hopefully someone can help me with. Re: expenditure allowable against rental income, is it the date the expenditure is incurred (invoice date) or the date it's paid (date I put in the cheque) that determines the date of the expenditure?
Reason I ask is I have tenants moving out this month, have painters lined up to come in and re-paint the whole apt (not bad tenants just normal wear and tear, hasn't been done in years) and I want to make sure I can claim the cost against 2013 tax. If it ended up being Christmas week the job is done and invoiced, is that then allowable for 2013 tax or does it depend on date cheque is dated (hopefully not date cheque cashed as I've no control over that)
Thanks AAM'ers as always
 
I'll let the accountants be more precise, but if the work is done in 2013, then to me even if you pay in 2014 it's a cost for 2013. If you take a rent that is late, say due 29th Dec, and paid by tenant on 2nd Jan, as far as I know it goes into the books of 2013 so I assume the same applies to expenses.

Personally I just put the cost in my books as the date of invoice. And ditto for rent.

Mandelbrot will be along shortly to tell me how I'm doing it all wrong :p
 
Bronte said:
I'll let the accountants be more precise, but if the work is done in 2013, then to me even if you pay in 2014 it's a cost for 2013. If you take a rent that is late, say due 29th Dec, and paid by tenant on 2nd Jan, as far as I know it goes into the books of 2014 so I assume the same applies to expenses.

Personally I just put the cost in my books as the date of invoice. And ditto for rent.

Mandelbrot will be along shortly to tell me how I'm doing it all wrong :p
Click to expand...

As the seasonal saying goes... He's behiiiind you!

No you're not wrong - except you've said 2014 where I think you meant to say 2013 (end of first paragraph)
 
Bronte said:
I'll let the accountants be more precise, but if the work is done in 2013, then to me even if you pay in 2014 it's a cost for 2013. If you take a rent that is late, say due 29th Dec, and paid by tenant on 2nd Jan, as far as I know it goes into the books of 2014 so I assume the same applies to expenses.
Click to expand...

I think that you are right and have put in 2014 when you should have put in 2013. The expense incurred in Dec 13 is a 13 expense, the rent for December paid in Jan 14 is 13 rent.
 
Agreed both you guys, so I fixed the error. Glad though to see on this accountancy point I'm correct in knowledge if not in practice.

So OP has no worries.
 
You must log in or register to reply here.
Back
Top