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  • #987738
    rthorntn
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    Hi,

    When I started the lease on my office I paid both a deposit of one months rent (paid with my own personal cash) and also a bank guarantee for the amount of 3 months rent.

    Now if I recall correctly the deposit is going to some off of my first months rent, so when the invoice comes in it will probably be for just the GST, how do I account for this?

    Probably a directors loan for the deposit amount from my dummy bank account but i’m at a bit of a loss on reconciling the invoice that has the deposit taken off of the rent?

    Thanks for looking.

    Best regards
    Richard

    #1164138
    rthorntn
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    I got this from the real estate:

    “As you rent starts in May, I will apply your deposit to the first month’s rent. I will do so in the next couple of days and I will send you a statement (showing the application of deposit) and a tax invoice which will be a zero balance for May. In the middle of May I will send you a tax invoice for June which will details full charges.”

    #1164139
    Bronwyn Baird
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    Hi Richard

    The rental bond amount should be entered into an asset account and held there until your lease expires or the funds are used to offset expenses by landlord.

    As you paid bond and rent together in one payment you will need to split this between both bond account and rent account.

    The payment will be made from your drawings account or loan account depending on the entity structure.

    Hope this helps – contact me if you need further assistance

    thanks

    #1164140
    FalzonFinancial
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    rthorntn, post: 189888 wrote:
    Now if I recall correctly the deposit is going to some off of my first months rent, so when the invoice comes in it will probably be for just the GST, how do I account for this?

    It depends on whether your BAS is on a cash or accrual basis reporting cycle. It will most likely be on a cash basis. If so, you may be entitled to the input tax credits you have paid in cash in accordance with the landlord’s invoice.

    Hope this helps.

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