When you own a rental property, keeping records is important. These will help you meet tax obligations. Generally, only individuals with their names on the title deed declare income and claim expenses.
Remember that the records must be kept in English or should be easily translatable into English, and kept for a minimum period of 5 years.
The records you need to keep include:
- Dates and costs of buying the property: These will help work out any capital gain or loss when the property is disposed of – the data entered into the contact is the purchase date, not the settlement date.
- Any rent and rent-related income: This will be required to report tax return.
- Expenses associated with the property: These are important to claim deductions you may be entitled to. These records should include the name of the supplier, the amount of the expense, nature of the goods or services, the date the expense was incurred, date of the document
- Significant changes: These include repairs or improvements or partial or all sale of the property – the cost of repairs and improvements should be kept separate from depreciation costs so that deductions and capital gains and losses can be calculated correctly.
- Costs of selling or disposing of property: To be able to work out any capital gain or loss