Separate bank account for investment property?

[Jaz]

Hi All,

Just looking at getting my accounts in order following my first IP purchase. In order to easily keep track of IP income and expenses, is it generally best to have a separate bank account for investment purposes (for rent to be payed into and expenses to come out of)?

Any recommendations on how to best set ourselves up?

Cheers,

Jaz

 

[Jamie M]

Hi Jaz

If you've got a PPOR a good structure can be an offset set up against the PPOR loan with all income (rent and salary) being diverted to it and interest repayments taken from it.

You could consider using a credit card that provides some sort of rewards system for expenses - and pay it off at the end of each month from the funds in the offset.

Personally, I don't bother with multiple accounts for tracking IP income/expenses. I have it set up as mentioned above - and spend 10 minutes each month updating an excel spreadsheet with all IP income/expenses.

Cheers

Jamie

 

[Jaz]

Hi Jaz

If you've got a PPOR a good structure can be an offset set up against the PPOR loan with all income (rent and salary) being diverted to it and interest repayments taken from it.

You could consider using a credit card that provides some sort of rewards system for expenses - and pay it off at the end of each month from the funds in the offset.

Personally, I don't bother with multiple accounts for tracking IP income/expenses. I have it set up as mentioned above - and spend 10 minutes each month updating an excel spreadsheet with all IP income/expenses.

Cheers

Jamie

Hi Jamie,

We don't own a PPOR, just the one IP. I'm just wondering whether it's better to keep our salaries, living expenses etc. separate from the IP income and expenses.

Cheers,

Jaz

 

[Terry_w]

Hi Jamie,

We don't own a PPOR, just the one IP. I'm just wondering whether it's better to keep our salaries, living expenses etc. separate from the IP income and expenses.

Cheers,

Jaz

Nope. Just set up an offset attached to this and have all income and cash deposited. from a tax POV it should not matter at all if all income goes into the one acccount.

 

[Jaz]

Nope. Just set up an offset attached to this and have all income and cash deposited. from a tax POV it should not matter at all if all income goes into the one acccount.

Hi Terry,

Ok, just need to try and sort out that offset account situation...

http://somersoft.com/forums/showthread.php?t=92479

So if I have rent and salary going into one account and IP expenses coming out, of it, it's just a case of keeping receipts and tax invoices for tax time and putting it all into a spreadsheet?

Cheers,

Jaz

 

[Terry_w]

Hi Terry,

Ok, just need to try and sort out that offset account situation...

http://somersoft.com/forums/showthread.php?t=92479

So if I have rent and salary going into one account and IP expenses coming out, of it, it's just a case of keeping receipts and tax invoices for tax time and putting it all into a spreadsheet?

Cheers,

Jaz

yes, you would need to keep receipts anyway to claim the deduductions. just make an excel spreadsheet and record things as the expenses are paid.

 

[Charlotte30]

Separate Bank Account for Investment Property

I have one separate bank account that holds expenses and Income for all investment properties. I also have an excel Spreadsheet that breaks it down to individual profits on properties. My personal income and spending is in a totally separate account. For me it operates like two separate entities ie business and personal.

 

[Zipper]

I have a PPOR with an offset P&I loan. Just got my first IP with IO loan. Should I just use the offset on PPOR for all rent income and IO repayments?

What are the tax issues with that? If I keep a spreadsheet of all in and out goings will that suffice at tax time?

 

[Colin Rice]

I have a PPOR with an offset P&I loan. Just got my first IP with IO loan. Should I just use the offset on PPOR for all rent income and IO repayments?

What are the tax issues with that? If I keep a spreadsheet of all in and out goings will that suffice at tax time?

Will be fine as you have it.

No issues. A spreadsheet recording income and expenses will be adequate. Keep all reciepts in regards to expenses incurred with IP.