It’s getting to be tax time again.
Most tenants I met in my life only required rent receipts all in a pile and just once a year. And it meant having to prepare twelve individual receipts all in one sitting.
Not a problem.
But when you have say 50 tenants all asking for them at tax time it can be an issue.
The method I most use is to simply prepare the receipts in either PDF or Word format and email them to the tenant as a zip file containing all 12 months.
(NOTE: In my Province. I am not required to provide rental receipts unless the tenant asks for them. And I would say half of the tenants I have dealt with never ask for them unless they are students or on government assisted programs. However, for my records, I do provide them either electronically or by paper.)
Another thing I do is print them out and sign each so I have a paper record for the tax man. Not necessary, but I do it anyway.
I am going to try this year to only prepare and submit a rent roll to the tax man. Not sure if this is aloud. I will be sure to ask my accountant.
Another way is just to make sure you keep up with the receipts each month and make sure you store them in a package for that house.
You can find an example rent receipt in one of my next posts “Rent Receipt and Rent Receipt Template”
Just as another tax note about rental properties, people are asking me, “What can I write off on my taxes?”
Here is a short list:
- Mortgage Interest
- Property taxes
- House Insurance
- Hot Water Tank Rentals
- Rental Agent commissions
- Property management fees
- Repairs & maintenance
- Utilities
- HOA fees
- Depreciation
I also write off a percentage of my computer equipment and office supplies, telephone, ads and mileage pertaining to the rental (I can do this because I keep a log of everything including mileage and calls).
So be sure to keep your records up-to-date, make sure your tenant gets their rental receipts and everything should go smooth.
One last thing is I do recommend is having an accountant at least prepare your taxes in relation to your rental. Remember the cost is likely going to be greatly offset by what they save you.
All the best of luck to you.
Great way to store the tax sheets!!! and your photos are charming ;-)
Always look gorgeous but 2nd pic is too Hot
I first start with the second picture, you are very charming dear freind , lol, for the article, although I am not concerned with the rent but it is very interesting to know, thank you very much @kristinaljfom
Thank you for kind words)
Sweet
Thank you for support)
You are always welcome