Terry_w's Tax Tips: the definitive list

Hi all,

I thought it would be worth collating Terry_w's invaluable tax tips into a list.

I know this has been attempted before but that thread is a bit clunky as you have to go through 4 pages to go through the list. Here they are all consolidated in a single post.

It would be great to have the ability to edit the OP so I update it as necessary.

Mods: feel free to sticky this thread.

1: Parking borrowed money in an offset account
2: Debt Recycling
3: Mixing Loans - Don’t do it
4: Borrowing to Pay investment expenses
5: Reimbursing yourself - Impossible
6: Using Redraw to invest
7: keep All Receipts forever
8: Forgotten land Tax
9: Don’t use Cash in Offset account to Invest
10: Offset in the name of the lower income earner
11: Further Borrowing against property deductible against the income it generates
12: Credit Cards and Tax Issues
13: Simple Loan Structuring Strategy
14: Never ‘Park’ money in a loan
15: Transfers for No Consideration and Deductibility of Interest
16: Capitalising Interest
17: Divorce and Deductibility of interest
18: Strategy to Increase deductions on Divorce
19: Avoid Using Redraw on an Owner Occupied Loan
20: Never use a LOC as the main loan!
21: Tax Advantages of Buying property in 1 name only
22: Security for a loan does not determine Deductibility of Interest
23: The 6 year Absent from Main Residence Rule
24: Capitalising Interest and Non working spouses
25: Only Use Interest Only Loans To Acquire Investment Properties
26: Claim interest on a main residence against CGT on sale
27: Borrowing to knock down PPOR and build duplex and Rent one
28: Selling an IP to pay down non deductible debt
29: Timing the breaking of fixed loans
30: How to Minimise land tax in NSW
31: Should I buy in my name because I earn more money and can claim more?
32: Delay paying CGT and save interest
33: Deductibility of LMI
34: Deductibility of LMI on loan increases
35: Is LMI Deductible in These Situations?
36: Consolidating Loans for investment properties
37: Withhold tax on interest you pay to overseas entities
38: Interest on Construction of an investment property
39: Improving the Main Residence - Tax Free Money
40: Tax Issues with Injecting money into Private Companies
41: Land Tax and Absences from PPOR in VIC
42: 'Principal Place of Residence' v 'Main Residence'
43: Demolishing PPOR and Subdividing land and building 2 houses
44: How to Un-Mix a Mixed Loan
45: How to work out the Portions of a Mixed Loan
46: Want to Pay IO on a PI loan?
47: Spousal Loans as a Tax Strategy
48: Hybrid or Unit Trust with loan in the wrong names
49: Transfer of Title from Bare Trustee to Beneficiary and Tax Issues
50: Minimising duty on Spousal Transfers
51: Two Spouses: One wants to Invest the other Doesn’t
52: Trusts and the main residence exemption for CGT
53: Paid Deposit with cash - how to fix big mistake before settlement

 

@Terry_w is going to publish a book, I think.

 

Unfortunately the character limit forced me to spread the list into a multiple posts.

51: Two Spouses: One wants to Invest the other Doesn’t
52: Trusts and the main residence exemption for CGT
53: Paid Deposit with cash - how to fix big mistake before settlement
54: Why Not to Mix Loan Purposes
55: An Exception to the rule about splitting before Repaying a Mixed Loan
56: 2 Co-owners and Deductibility of interest where one rents to the other
57: Gift Tax
58: Two on title One on loan. Who claims Interest?
59: Borrowing to Buy shares
60: Never use cash to invest
61: How to borrow 105% on your first purchase
62: Paying Cash for a property and then getting a loan
63: Don’t cause borrowed funds to take a detour
64: Tax Consequences of a Beneficiary Living in a Trust property rent free
65: Deductibility of Interest for paying out a loan of a deceased estate
66: The Refinancing Principal and Partnerships
67: Using Redraw Facilities on loans and Tax Issues
68: Transfers Between Spouses and Stamp Duty in NSW
69: Land Tax on Trust owned property in VIC and PPOR exemption
70: NRAS Property and Deductibility of Interest and other expenses
71: Deduction of interest after assets sold
72: Borrowing to Pay Income Tax and Deductibility of Interest
73: Multiple Offset Accounts and some Tax Issues
74: Selling a property that secures other loans
75: Refinancing 2 loans for the 1 property and potential tax issues
76: Calculating the Cost Base for CGT purposes.
77: Redrawing Extra Repayments to Increase Deductions?
78: Capitalising Interest and Claiming it off CGT?
79: Interest Deductibility for 1 on title 2 on loans
80: Deductibility of Interest for 2 Unequal Owners
81: Deductibility of interest property in name A but B paying loan
82: Taking money from an offset account on an IP and Claiming Interest
83: CGT on Death and the Passing of Property
84: Don’t Pay your Rent into a LOC
85: Sale of a Rental property to Related Company
86: Don’t be so fearful of generating income from the main residence
87: Moving out of the Main Residence and Interest
88: Use cash in offset to invest or pay down loan and reborrow?
89: Borrowing and onlending Interest Free to a Discretionary Trust
90: Consolidating loans – be careful of tax issues
91: A Non-owner running a business at home
92: Property as Trading Stock
93: Subdividing Property and Deductibility of Interest
94: Inheriting Pre-CGT Property
95: Land Tax in NSW Between Exchange and Settlement
96: QLD Land Tax for Non Residents
97: What is a gift from a taxation point of view?

 

Reserved.

I've caught the spam filter, stand by!

 

Thanks Jay

I have collected them all into a word document - which is about 200 pages now. I want to go through and edit out the spelling and grammar mistakes and some errors in there too and maybe take into account some of the replies. Then I might make it available as a ebook.

 

Original thread over 4 pages.....
If you are hungry enough for the info you wont mind going through 100 pages.

 

Thanks @jay.

I think I am becoming a tax geek

 

I think my tax law textbook is still around collecting dust.

 

Tax Tip 98: Depreciation and renting out a former main residence
Tax Tip 99: Vacant Land and the CGT Exemption
https://propertychat.com.au/community/threads/tax-tip-100-transfers-between-spouses-and-cgt.9275/
Tax Tip 68: Transfers Between Spouses and Stamp Duty in NSW
Tax Tip 102: Transfers Between Spouses and Stamp Duty in the ACT
Tax Tip 103: Transfers Between Spouses and Stamp Duty in VICTORIA
Tax Tip 104: Interest in Advance and Tax Issues
Tax Tip 105: Don’t Claim the 6 year rule where there is a capital loss
Legal Tip 121: Living Overseas and Company Directorships
Tax Tip 107: CGT exemption not stay in newly constructed house for 3 months
Tax Tip 108: Using Bucket Companies to Save Tax
Tax Tip 109: CGT and Being absent from the main residence for more than 6 years
Tax Tip 110: Tax Issues with Paying Executors of Estates
Tax Tip 111: Getting money out of a Bucket Company
Tax Tip 112: Segregating Cash in different accounts - No Need
Tax Tip 113: Applying Capital Losses against Capital Gains
https://propertychat.com.au/community/threads/tax-tip-114-franked-dividends-and-tax.10477/
Tax Tip 115: Trust Losses and Franking Credits
Tax Tip 116: The cost of owning assets while having non-deductible debt
https://propertychat.com.au/community/threads/tax-tip-117-deductibility-of-interest-on-loans-to-finance-super-contributions.10620/
Tax Tip 118: Deductibility of interest where settlement never happens and deposit lost
Tax Tip 119: How to Reduce CGT on Investment Property (Part I)
https://propertychat.com.au/community/threads/tax-tip-120-cgt-and-moving-into-an-investment-property.10714/
https://propertychat.com.au/community/threads/tax-tip-121-capital-losses-and-income-losses.10791/
Tax Tip 122: PreTax Equivalent Earnings on the PPOR offset
Tax Tip 123: Building on Pre-CGT Land
Tax Tip 124: NSW Land Tax: Comparison of Joint v Single Ownership
https://propertychat.com.au/community/threads/tax-tip-125-break-even-point-with-property-investing.10909/
Tax Tip 126: Interest Deductibility when property for sale and untenanted
https://propertychat.com.au/community/threads/tax-tip-127-your-average-tax-rate.10954/
Tax Tip 128: Capping your Tax Rate at 30%
https://propertychat.com.au/community/threads/tax-tip-129-deductibility-of-loans-when-later-renting-out-your-main-residence.11043/
https://propertychat.com.au/community/threads/tax-tip-130-tax-deductibility-of-breaking-a-fixed-loan-on-owner-occupied.11103/
https://propertychat.com.au/community/threads/tax-tip-131-breaking-a-fixed-loan-3-different-tax-consequences.11168/
Tax Tips 132: Terminal Illness – tax aspects to Consider
Tax Tip 133: Choice of Depreciation Method and Debt Recycling
Tax Tip 134: The Gift and Borrow Back Strategy and Tax
Tax Tip 135: The 6 year rule and renting part of your property out
Tax Tip 136: Claiming Stamp Duty on Properties located in the ACT (Part 1)
Tax Tip 137: Claiming Stamp Duty on Properties located in the ACT (Part 2)
Tax Tip 138: GST and Death
Tax Tip 139: Abolition of Duty on transfers of Units and Shares in NSW
Tax Tip 140: Strata Titling a property and CGT
Tax Tip 141: Strata Titling a property and CGT (Part II)
Tax Tip 142: Deductibility of Stamp Duty Penalty Interest
Tax Tip 143: The sale of a property – Capital or Revenue account?
Tax Tip 144: Taxation of Super on death
https://www.propertychat.com.au/community/threads/tax-tip-149-saving-tax-by-splitting-income.14509/
https://www.propertychat.com.au/community/threads/tax-tip-146-contracting-with-family-to-divert-income-and-save-tax.14980/
https://www.propertychat.com.au/community/threads/tax-tip-147-how-to-earn-95-000-pa-and-pay-no-tax.15496/
Tax Tip 148: CGT and Different Parcels of the Same Shares
Tax Tip 149: NSW Land Tax Trap for Non-Citizens
https://www.propertychat.com.au/community/threads/tax-tip-150-how-to-pay-no-income-tax.16959/
Tax Tip 151: Dependant Children and the Main Residence CGT Exemption
https://www.propertychat.com.au/community/threads/tax-tip-152-cgt-wont-apply-to-me-as-i-will-never-sell-6-reasons-why-it-might.18004/
Tax Tip 153: CGT on Gifts and Under-market Value Transfers
Tax Tip 154:The effect Tax has on Compounding of investments
Tax Tip 155: Tax Deductions of Donations to Charities on Death
Tax Tip 156: Death and Leaving Assets to Non-Residents and CGT
Tax Tip 157: Difference on being taxed Capital v Revenue Account
Tax Tip 158: Borrowing Money from a Related Company (Div7A)
Tax Tip 159: No CGT on Transfer to a Special Disability Trust
tax Tip 160: Another Tax Reason not to Invest in your Own Name
Tax Tip 161: The new Duty on Spousal Transfers in VIC
Tax Tip 162: Taxation of Superannuation Proceeds Trusts
Tax Tip 163: Trusts and Land Tax in South Australia
Tax Tip 164: Deductibility for Costs of Setting Up a Trust

 

What happens in this situation?

My wife and I have one investment property solely in her name as she has the higher income.

We have a loan in both our names for this property.

Attached to this loan is an offset account which has been split into three separate accounts so we can easily track spending.

Both of our incomes, rental income and mortgage payments are done within the offset accounts.

As the loan is under both names, so too is the offset.

At tax time is this going to cause issues?
What needs to be done to resolve these issues?

Thank you for your help.

 

Only your wife could claim the interest - if all the loan relates to that property she owns

 

Do you have a loan v's your own home ? If so the offset should be against non-deductible debt. This will maximise the deductible interest and help repay your own home faster.

I often find taxpayers with offsets against a IP loan when it should be against the non-deductible loan