Re: Land and Property Expenses
- From: Alan Ferris <alan@xxxxxxxxxx>
- Date: Tue, 18 Sep 2007 20:12:12 GMT
On Tue, 18 Sep 2007 20:29:56 +0100, "James" <james-nomail@xxxxxxxxxxx>
wrote:
"Ronald Raygun" <no.spam@xxxxxxxxxxxxxxxxxxxxx> wrote in message
news:xDAGi.14543$c_1.11581@xxxxxxxxxxxxxxxxxxxxxxxxxxxxx
James wrote:My properties are all within a ten mile radius of where I live.
"Troy Steadman" <troysteadman@xxxxxxxxxxx> wrote in message
news:1189775523.264300.166980@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On 14 Sep, 12:41, "James" <james-nom...@xxxxxxxxxxx> wrote:
I rent out five houses and manage them myself and not through
an agency.
What I want to know is can I claim my car running expenses, e.g.
Fuel. Road Tax, Car Insurance, Servicing, Repairs, etc. against
my rental income?
If I were you I would keep a log - date, start mileage, finish
mileage, purpose of journey. Then yes, why not...
Why do I need a log? Is this to prove my business use?
Yes, it isn't really good enough to use estimates.
You can then do one of two things. Either put down as expense a
mileage allowance (40p per business mile for the first 10k, 25p
for each additional mile). Or else use the business mileage and
the total mileage to give you a proportion and expense that fraction
of *all* the car's running costs plus capital allowances.
The mileage allowance method is often better because it's simple.
I estimate that I use my car around 80% of the time in servicing
the properties and collecting the rents, etc. with 20% personal
use.
Sorry, but that sounds over the top, and is just asking for trouble,
in terms of attracting an investigation by the tax man.
Collecting rents? That went out with the ark! Get your tenants to
pay their rent by standing order.
Servicing? What does that involve? I do about 13k miles a year
in my car. I rent out only one property, but the mileage I do for
that is unlikely to exceed 50 a year, and I'm baffled how yours
could be so high. How far are the properties located from where
you live (sorry, from your property empire's "office")?
My total mileage per year in the car is around 1,500 miles and not
the 13k most drivers seem to do on average.
I call in person to collect the rents from my five tenants and in this
way can also keep an eye on the properties and build up goodwill
which reduces turnover of tenants and arrears to a minimum. Apart
from one property all my tenants have been there over five years now.
The car is also used to go for materials to carry out any repairs, which I
also as far as possible do myself to reduce costs. Annual Gas Certificate
and Gas repairs being the obvious exception.
I also carry out a certain amount of gardening at two of the properties
which have elderly ladies living in them and can not keep up to the gardens
themselves. I do not charge them any extra for this service as keeping the
gardens looking good benefits myself also.
Therefore I do not think 80% business use is excessive, do you?
As you have given no information on your private mileage, who knows?
Do you stop at the shops on the way back? Do any personal banking?
etc....
--
Alan "Ferrit" Ferris
()'.'.'()
( (T) )
( ) . ( )
(")_(")
.
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- From: James
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