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Rental expense and deduction ledger

Record every expense on your rental properties, mark what is allowable and keep receipts in order for your annual return.

Rental expense and deduction ledger template

Landlords who file an annual return can deduct allowable expenses, but only with a record. This ledger lists each expense by property and type, marks whether it is allowable, shows the total you can deduct and notes whether you hold the receipt, so your return is ready when the year ends.

Landlords who choose to file rental income in their annual return rather than pay monthly rental tax, and accountants preparing landlords' returns.

What is included

  • Expense types suited to rental property
  • Allowable amount worked out from your choice
  • Receipt kept column
  • Totals of all, allowable and not allowable expenses
  • Summary of allowable expenses by type with a chart

Screenshots

  • Rental expenses of Rental expense and deduction ledger
  • Allowable expenses by type of Rental expense and deduction ledger

How to use it

  1. List each expense with its date, the property and the type of expense.
  2. Type the amount and mark whether the expense is allowable.
  3. Mark whether you have the receipt or invoice.
  4. Use the totals and the summary by type when you complete your return.

Templates are tools to help with your own records. They are not tax or legal advice. Check the figures against official sources before filing or paying.

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What the rental expense and deduction ledger does

Landlords who file an annual return can deduct allowable expenses, but only with a record. This ledger lists each expense by property and type, marks whether it is allowable, shows the total you can deduct and notes whether you hold the receipt, so your return is ready when the year ends.

Who it is for

Landlords who choose to file rental income in their annual return rather than pay monthly rental tax, and accountants preparing landlords' returns.

How to use the workbook

  1. List each expense with its date, the property and the type of expense.
  2. Type the amount and mark whether the expense is allowable.
  3. Mark whether you have the receipt or invoice.
  4. Use the totals and the summary by type when you complete your return.
  5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

  • Expense types suited to rental property
  • Allowable amount worked out from your choice
  • Receipt kept column
  • Totals of all, allowable and not allowable expenses
  • Summary of allowable expenses by type with a chart

The workbook has these sheets: Instructions, Expenses, By type. The main table has the columns Date; Property; Expense type; Amount; Allowable?; Allowable amount; Receipt kept; Notes. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

  • Repairs are usually allowable, but improvements are capital and are not.
  • Keep one folder of receipts for each property.
  • Compare annual tax with monthly rental tax before you choose.
  • Mortgage interest has its own limits, so check the rules before you claim it.

Why keep this record

Most tax trouble comes from late or missing records rather than from the tax itself. When the figures are collected as they happen, preparing a return becomes a matter of copying totals, not of searching for receipts. A workbook that follows the same layout as the return also makes it easier to spot a number that looks wrong before KRA does, and to explain it if asked.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Tax figures change with each Finance Act, so check the Rates sheet against KRA's current guidance before you file. Keep the supporting documents with the workbook, and keep each year's copy for at least five years in case KRA asks for proof.

Read the KRA filing calendar for small businesses for the wider picture. Free calculators that go with it: Rental income tax calculator, Withholding tax on rent calculator. See more tax templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

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