FREE Investment Property Spreadsheet For Tax

FREE Investment Property Excel Spreadsheet For Tax

A few years ago after I purchased my 4th investment property I sat down with my Accountant and developed a simple to use investment property spreadsheet for tax.

This spreadsheet will help you calculate your income and expenses for as many properties as required.

It will also help save you save time at the end of each financial year and put you in good stead when the time comes to sell your investment property.

The spread sheet is relatively easy to use and can be modified to suit your requirements.

It will help you track and record the following information for as many properties as you own:

  • Annual income
  • Annual costs
  • Entry costs
  • Exit costs

FREE Investment Property Excel Spreadsheet For Tax

FREE Investment Property Excel Spreadsheet For Tax

What documents will your Accountant need to you to supply to complete tax return ?

There are two types of property investors active and passive investors.

Passive investors are those who dump all of their receipts on their Accountant at the end of the financial year and let them deal with the fall out.

Professional investors on the other hand give their accountant a summary of the income and expenses for their properties which in turn reduces accounting fees and gives them control over their portfolio.

Being an active investor gives you the opportunity to review your cash flow position on a property by property basis.

Purchasing expenses (if applicable)

If you purchased a property this year then you’ll need to inform your accountant of the expenses associated with the purchase. You will find most of these figures in the settlement statement provided to you by your conveyancer at the time of settlement.

Most accountants recommend that you provide a copy of the relevant pages from the contract of sale and your settlement statement to them so they can make sure no deductions are overlooked.

Common deductions which you can claim on a new purchase include:

  • Stamp duty.
  • Misc government fees (transfer and registration of mortgage).
  • Pest, building and/or strata inspections.
  • Conveyancing fees.
  • Bank cheque fees.
  • Buyers agency fees.
  • Borrowing expenses (see loan expenses).
  • Penalty interest (if applicable).

Management expenses

At the end of each financial year your property manager will send you an annual income and expenses statement showing the total rent received as well as the total costs associated with the management of your investment property.

You can organise for your property manager to pay any expense associated with your property. The following expenses may be paid from your rent and will be included in your monthly and annual statements:

  • Property management fees.
  • Letting fees.
  • Tribunal expenses.
  • Handling fees, postage fees and sundry expenses.
  • Council rates.
  • Strata fees.
  • Water.
  • Electricity.
  • Maintenance fees.
  • Land tax.

Rates & levies

If you purchased an investment property in the last financial year then you can add in or deduct any settlement adjustments for strata fees, water rates and council rates. Alternatively, you can keep the rates and levy notices and add them up as a up at the end of the year.

  • Council rates (four notices received each year).
  • Water rates (four notices received each year).
  • Body corporate / strata levies (four notices received each year).
  • Land tax (annual).

How to avoid land tax on investment property.

Loan expenses

Most lenders will provide you with a final statement at the end of the financial year which displays the total interest and fees charged to you for a particular loan during that year. In many cases, you can also find these figures in your internet banking, although this will take longer.

If you purchased a new property or refinanced a loan this year then you’ll need to calculate your borrowing costs.

  • Interest expenses.
  • Annual package fee / monthly fees.
  • Loan setup fees (if you setup your loan this financial year):
    • Application, valuation, settlement and documentation fees (if applicable).
    • Lenders Mortgage Insurance (LMI) premium (if applicable).
    • Lenders legal fees (if applicable).
    • Brokerage fees (if applicable).

Repairs & renovations

Repairs and renovations are treated differently by the Australian Tax Office. A depreciation report will help your Accountant or tax agent break down the tax deductible items associated with your property, while your Accountant will be able to help you break down any other items, including:

  • Repairs (e.g. plumbing and electrical).
  • Renovations.
  • Cost of construction (if you built the property this year).
  • DA fees, architect fees, surveys and compliance certificates (if developing).
  • Gardening.
  • Cleaning.
  • Pest control.

Other expenses

  • Building insurance (note: for units and townhouses the building insurance is paid by the strata corporation and therefore form part of your strata levies).
  • Landlords insurance.
  • Depreciation schedule (only needs to be provided once).
  • Stationery, telephone expenses and postage.
  • Travel to inspect your investment property.
  • Legal fees.

Income

Your gross income for a property is very easily to calculate and can be easily located on your income and expenses report provided by your property manager at the end of the financial year. Common items to add into the income column include:

  • Rental income.
  • Claims on insurance policies.
  • Water usage charged to tenants.

Is there any additional information that your Accountant need?

Your accountant will need to know some additional information about your property outside of your income and expense figures including:

  • The address of the property.
  • The percentage of the property that you own.
  • The date purchased (if purchased this year).
  • The date the property started earning rental income.
  • The number of days the property was rented for this year (ask your property manager).
  • The number of days the property was used for private purposes (e.g. holiday homes).
  • A list of assets bought and sold to assist your accountant to calculate your depreciation deductions.
  • Any funds redrawn from your loan this year.

How can you keep better records?

If you’re going to build a decent property portfolio then keeping good records is essential.

Buy filling all of your receipts, keeping accurate records using the investment property spread sheet for tax and staying connected to your Accountant throughout the year you will be well place come tax time.

FREE Investment Property Excel Spreadsheet For Tax

The information contained in this article is for general information purposes only and should not be regarded as a substitute for professional legal, financial or real estate advice. The information is provided by Pumped On Property and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained in this article for any purpose. Because every persons needs and financial situations are different, the information in this article are intended as a guide only. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this article or which may be suffered by any recipient through relying on anything contained in or omitted from this article.

Through this article you are able to link to other websites which are not under the control of Pumped On Property. We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.

Ben Everingham

About

Ben founded Pumped On Property after building a multi-million dollar property portfolio over a 5 year period. His mission is to show you how to replace your income through property investing so you can do what you love…full time.

One thought on “FREE Investment Property Spreadsheet For Tax

  1. My spouse and I stumbled over here coming from a different page and thought
    I might as well check things out. I like what I see so now i am following you.
    Look forward to exploring your web page yet again.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.