Number of accounts

Hi all,

What is the best way to setup accounts for rental and expenses payment?

For example - for IP1, I already have:
1. Loan Account (where the mortgage is given by the bank) - cannot change this, bank managed this.
2. Offset account linked to this Loan Account - I might deposit some money into this from time to time.

The question is should I ask the PM to deposits net rental to this offset account as well; or should I create another offset account to keep the rental income and expenses; in order to keep it separate from the offset account that I might deposit money into it from time to time.

What do you normally do?
Thanks.

 

I don't know why it took me so long to do this, but a couple of years back I opened a separate current account for rent receipts and outpayments (rates, water, maintenance etc). Previously they'd just gone into my main current account. Huge timesaver at tax time.

 

The best place would be to have everything go into an offset account attached to the non-deductible debt. If none, then an offset on the most expensive loan (generally).

There is no tax need to segregate cash.

Tax Tip 112: Segregating Cash in different accounts - No Need Tax Tip 112: Segregating Cash in different accounts - No Need

 

Agreed - I'm in the happy position of not having any borrowings.

 

Thanks Terry and Tony. I want to keep it clean for easy tracking. So will still have 1 offset per IP, due to different ownership, but don’t need to a separate account for rent and expenses.

 

Second Terry. Just keep it simple.

 

SportsBet account. If you feel lucky. Otherwise as above.

 

Curious to know how cleanliness of multiple accounts is helping or making your life easier?

May be also consider the non deductible interest you may have saved otherwise if you had directed all of your cash to offset linked to your PPOR

 

I have multiple loans and multiple offsets.

All rental income goes into one account. All rental expenses come out of the same account. I have no non-deductible debt.

 

Same!
Easy to track.