Separate LOC's?

[ChrisOs]

Hi,
This is a question for my acccountant, but I would be interested in hearing how others would handle this situation.

I have 4 IPs but only recently set up a line of credit facility. Some of that credit is being used to fund IP4 - the money borrowed to purchase IP4 is a combination of an investment loan and LOC.

When I provide information for my accountant each year, I separate all my expenses by IP (e.g. interest, PM commission, plumbing etc), so each IP has its own "profit and loss" account.

If I have to pay for big ticket items, e.g. curtains for IP1, carpet for IP2 and hot water service for IP3, I would like to pay them all out of the one LOC. It it advisable to do this or should I have separate LOCs set up, one for each IP, so that I can record separately the interest for IP1 curtains, IP2 hot water service etc?

Regards,
Chris.

 

[Rolf Latham]

Hiya

If you dont mind doing the paperwork, cant see why only one would be a problem
\ta

rolf

 

[ChrisOs]

Hiya

If you dont mind doing the paperwork ....
rolf

Hi Rolf,
Thanks for the reply.

Does that mean that I should apportion the interest across each IP? e.g. $1000 for a water heater in IP1, paid for on 1st January, at an interest rate of 6.5% = interest deduction of $32.50, carpets in IP2 at $2,500 paid for on 1st April = $40.63 etc?

Regards,
Chris.

P.S. I would also have to take into account changes in interest rates.

Any Excel gurus out there have a little spreadsheet that determines the amount of interest for the number of days bewteen 2 dates?

 

[Rixter]

Hi,
This is a question for my acccountant, but I would be interested in hearing how others would handle this situation.

I have 4 IPs but only recently set up a line of credit facility. Some of that credit is being used to fund IP4 - the money borrowed to purchase IP4 is a combination of an investment loan and LOC.

When I provide information for my accountant each year, I separate all my expenses by IP (e.g. interest, PM commission, plumbing etc), so each IP has its own "profit and loss" account.

If I have to pay for big ticket items, e.g. curtains for IP1, carpet for IP2 and hot water service for IP3, I would like to pay them all out of the one LOC. It it advisable to do this or should I have separate LOCs set up, one for each IP, so that I can record separately the interest for IP1 curtains, IP2 hot water service etc?

Regards,
Chris.

Chris ,

This LOC Interest Distibution Spreadsheet should be exactly what the doctor's ordered for you. You can change any of the headings to suit your specific situation.

Cheers

 

[ChrisOs]

Chris ,

This LOC Interest Distibution Spreadsheet should be exactly what the doctor's ordered for you. You can change any of the headings to suit your specific situation.

Cheers

WOW Rixter !!

Just what the doctor ordered and then some

Thank you very much. I will have a play with this and let you know how I get on.

Regards,
Chris.