It pays to check your tax...

[rowena]

I have an accountant doing my tax due to multiple IP's...

Just a reminder for people to make sure you actually read the paperwork that the accountant gets you to sign, and not just sign it thinking your tax return is correct.

I have noticed on this years return so far:

1. Incorrect depreciation scheduled used against a IP. I am using prime cost in previous years but diminishing value method was used instead, i noticed this because the values in the fields where lower in capital allowances then expected and looked at my depreciation report..

2. Check if you have a low pool value that it is brought through from previous year

3. If u have a new IP and your using the method where it has a low value pool, make sure it gets included in your low pool value return and that it matches your depreciation report.

I've basically gotten a extra $500 back from these mistakes... :O

This is from an accountant that deals and advertises in IP's for tax returns before you say go to someone who deals with Ip's!

So just don't believe what they do give you, make sure you check yourself!

 

[MarkB]

So just don't believe what they do give you, make sure you check yourself!

I don't want to bash accountants... I have a good one.

But I also had one in the past whose advice turned out to be so patently incorrect that I was able to launch a claim against them (with lawyers) and they settled.

Still cost me a lot of money though - as well as hassle with the tax dept.

 

[Aaron_C]

That's fine for you because you know what to look for - how about the others who don't know what they don't know?

 

[Deltaberry]

Due to bad advice and bad structuring from the accountant they've used for 30 years, my folks are paying an extra $100k in land taxes per annum.

 

[rowena]

That's fine for you because you know what to look for - how about the others who don't know what they don't know?

This is why i thought i would mention what to look at. I didn't know how to do any of this 2 years ago! I learnt! I downloaded ETAX and i clicked on the help inside the rental section to read up on the legislation. Sure it may be confusing to some, others may not have enough time to do this.... and yes people do trust their accountants all the way...

But all im saying is it can pay to have a quick look over your return and put the numbers on your return against your paperwork that you have such as a depreciation schedule to make sure they are correct!

The reason i have an accountant doing my return is i do not know how to do loan amortization so figured while i do loan amortization i would get an accountant to do my return. Maybe this might be the next thing I learn how to do...

 

[Aaron_C]

Due to bad advice and bad structuring from the accountant they've used for 30 years, my folks are paying an extra $100k in land taxes per annum.

I think you better fire those people.

 

[Elizabeth L]

Hi Deltaberry - do you mind me asking, is the excessive land tax due to the one entity holding the property?
Cheers
Elizabeth

 

[Paul@PFI]

Accountants

Everyone should check the work of any professional. Doctors, lawyers and accountants all make mistakes, assumptions or incorrectly interpret facts. Doctors can kill but accountants dont normally (I know one tax manager in a Sydney priactice... Thats another story). That said we also get some dodgy records and sometimes need the eyesight of a pharmacist to understand what the client means and the skills of a forensic investigator to work out if their deductions will fail an audit. Typical error is client advising value of loan repayments made during the year instead of interest. I have to have eyes in back of my head for these problems. They can cost YOU $$ if they slip through. Thats why we must have PI insurance. The issue is were you charged for rectification ? Probably not.

Not sure what "loan amortisation" issues you are referring to that require such input? Loan deductions are very simple. Obtain your bank statement and the INTEREST (debits x 12) is deductible. If the loan has a blend of private and deductible use an amortisation schedule indicates a far greater tax concern than you are aware. This sort of tax issue can taint the entire deduction and re-doing a schedule is not the solution. The Commissioners approach is to deny 100% claimed and allow you to prove your calcs arent contrary to the "split loans" position.

 

[Paul@PFI]

Deltabeery

Contact Coastymike through this forum and see if he can assist. Some land tax problems can be fixed. Mike understands a number of new approaches that arent common knowledge. All legit. Have a look at the "No Stamp Duty Transfers" thread under Tax.

Due to bad advice and bad structuring from the accountant they've used for 30 years, my folks are paying an extra $100k in land taxes per annum.

 

[rowena]

Not sure what "loan amortisation" issues you are referring to that require such input? Loan deductions are very simple. Obtain your bank statement and the INTEREST (debits x 12) is deductible. If the loan has a blend of private and deductible use an amortisation schedule indicates a far greater tax concern than you are aware. This sort of tax issue can taint the entire deduction and re-doing a schedule is not the solution. The Commissioners approach is to deny 100% claimed and allow you to prove your calcs arent contrary to the "split loans" position.

Loan amortization of loan cost. So say if it cost you $1200 to set up the loan in bank fees, then you can claim this cost over 5 years.
as per:
http://www.ato.gov.au/Individuals/I...default=&page=3#What_are_you_unable_to_claim?

If your total deductible expenses are more than $100, the deduction you claim for those expenses must be spread over five years or the term of the loan, whichever is less.