tracking rental income for tax

C

coraroche

Guest
Does anyone have a good sytem for keeping a record of rental income so the tax returns are simple
 
use a seperate bank a/c and ensure that you pay any outgoings thru same a/c, end of year is just a summary process afterwards

westgolf
 
Keep all receipts for expenditure in a separate file. Write these up to an Excel sheet on an ongoing basis.
 
As above, keep two colums. Incoming and out going. The difference between the two is your taxable sum. Don't forget your losses carried forward if there are any.
 
PADDYBOY99 said:
As above, keep two colums. Incoming and out going. The difference between the two is your taxable sum.
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Surely it's not that simple? For example outgoings - mortgage €1K p.m. of which €200 is capital and €800 is interest. Only the €800 is an outgoing for rental income taxation purposes and the capital repayment is irrelevant. I mention this specific example because so many people seem to assume that if rental income is less than (annuity) mortgage repayments then they have no tax liability. Obviously this is wrong!
 
For the mortgage interest you get a statement annually that shows exactly what is interest and what is capital, then you only need to put in the interest once, forget about doing it monthly.
 

Good point

Bronte said:
For the mortgage interest you get a statement annually that shows exactly what is interest and what is capital, then you only need to put in the interest once, forget about doing it monthly.
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Best bet imho is to ignore the repayments altogether for this purpose (unless obviously its an interest-only mortgage) and record the interest amount on the annual statement the same as any other invoice.
 

Plus he appears to be assuming ALL outgoings can be claimed for. Some may not be depending on when incurred or type of expenditure.
 

Its amazing how many people think this as you point out. People who in every other regard are well informed and educated. I know of one guy who has several rental properties and has never paid tax on them because he believes hes not taxable due to this. AFAIK he has never even completed a tax return with them on it
 
rmelly said:
Plus he appears to be assuming ALL outgoings can be claimed for. Some may not be depending on when incurred or type of expenditure.
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And some will be classed as capital in nature, to be written off over 8 years instead of all in year 1.
 
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