Investment Property Invoices Showing My Own Address

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  psylence on 04/08/2021 - 13:34

  +3

  It won't be an issue with your tax return as you will just put it under repairs and maintenance for the investment it only becomes a potential issue if you are audited and then you have to explain

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    MeesusEff on 04/08/2021 - 13:45

    Thanks, I'm just worried if I get audited down the line in a few years then the tradies won't even remember and I get a tax debt.

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  BOGOF on 04/08/2021 - 13:38

  I'm in the same situation where my investment property is next door to my own home. We did renovations on the rental last year, and some invoices have my address and some have the rental address. Our accountant told us not to worry, as they are genuinely claimed expenses/improvements. if audited, photos or even a 'stat dec' will alleviate any questions. just be honest on what you claim for.

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    MeesusEff on 04/08/2021 - 13:47

    Thanks! We are looking to sell the house this year and tbh I'll also lose track of a lot of things if they audit 2-3 years later. Will they just ask the tradies or will the information be reliant from our side?

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      Soluble on 04/08/2021 - 14:02

      Why would you lose track of it if you're talking about it now? Box/file everything to do with your rental in one place, you can even let us know here where it is and come back and ask later if you lose it.

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        MeesusEff on 04/08/2021 - 14:16

        I just looked last night and realised that I lost a box of receipts. It was quite a distinct box as well and I have no idea where it is, that's why I mentioned it 😢

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      brad1-8tsi on 04/08/2021 - 17:44

      We are looking to sell the house this year

      I hope you got a written, professional valuation when you transitioned from PPOR to investment. Or are you working under the 6 year rule?

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        MeesusEff on 04/08/2021 - 18:07

        Uh, honestly don't know anything about it. But yes will be under 6 years, just started in 2019

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          brad1-8tsi on 05/08/2021 - 14:54

          @MeesusEff: You should discuss with your accountant to ensure you have sufficient documentation for maximum taxation efficiency.

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  netjock on 04/08/2021 - 13:58

  Wouldn't worry. If you think about it the description on the invoice any ATO person can come and see it isn't work done on where you live. Imagine it says "install new oven" and the oven in your house is a lot more expensive but no longer in production during the period it was meant to be installed.

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  freefall101 on 04/08/2021 - 15:16

  +1

  Take some photos of the work done if possible to show the repairs. Pretty unlikely to get audited on rental property repairs unless they're hugely extensive, and then they'll be more worried about capital improvement vs repair.

  That said, keep in mind the notion of an initial repair too. If something was already damaged at the time you bought the place it may be an initial repair and thus capitalised. I'm not totally sure how that works when switching from PPOR to rental, but since you'll likely want to keep the property as your PPOR you'll never get a benefit from any capitalised costs (since you won't pay capital gains).

  One of those "talk to an accountant" things.

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    MeesusEff on 04/08/2021 - 15:22

    We are looking to get a few things replaced as the cost of repair is not worth it. We did a temporary fix for the garage door and will most likely need to change in a few months. Also the gas heater as the plumber said there's no point servicing when it's 20 yo. Not sure if those will classify as repairs as we were looking to offset the replacement costs against the "profit" when selling the house.
    Haven't got an accountant, just did a once off thing last year.

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      freefall101 on 04/08/2021 - 15:44

      You can talk to an accountant as a once off, I was a tax accountant a decade or so ago and did that a lot, sometimes just giving a single bit of advice for $200 or so. When you sell the house (so long as you haven't bought another one yet) it should still be principal place of residence, therefore no capital gains on profit at all, thus no tax either way. It's called the 6 year rule, you can rent it out up to 6 years under certain circumstances so long as you're not claiming PPOR on another residence. You also want to be careful what the value of the property is and make sure it's recorded properly. If you're claiming the expenses against your rental income it's different again.

      Considering there could be thousands in tax payable if you get it wrong, it might be worth spending a few hundred bucks to clear it up with an accountant.

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        MeesusEff on 04/08/2021 - 16:39

        The accountant we used last year said since we lived in it that half would be cgt free, we are not looking to buy a house as my parents will transfer over the house we are in now at a later date (we used our offset to help them buy it). I looked up the no tax thing and it seemed that I didn't fall under the circumstances.

        Will be filing our taxes in a few months for last FY before we put the house up, so will compile qns to ask then :D

        Also for your first comment, tenant doesn't seem to like us personally being on the property (guess they feel caught out that we were living across the road) so can't get the photos of repairs

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  [Deactivated] on 04/08/2021 - 16:24

  Nah, it is fine if the invoice/bill address is your home and not the investment property.

  If the places was rented out and had a tenant it wouldn't be very good if they were getting your mail all the time, would it?

  If the invoice shows that the work was carried out at your home instead of investment property, then I would ask them to amend that.

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    MeesusEff on 04/08/2021 - 17:02

    Invoice just states what work was done like 'supply and install taps', 'garage door service' etc. Just has my address on it instead of IP

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      [Deactivated] on 04/08/2021 - 18:41

      I'd say its fine.

      I would just write down which property it was actually for on it myself if it comes up in the future.

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  Pelicannn on 04/08/2021 - 17:28

  If you get audited, just stat dec.