Tax refund, was hoping for more

As above, with buying 2 properties as IP, Thought I would get more
Here is some basic figures.

1st job tax paid 2925.00 Salary 11631.00
2nd job tax paid 17301.00 Salary 66576.00
Rental Income 7992.00

Total 86199


This what the account came up.

Taxable Income $57,130.00
Tax Payable $12,489.00
Plus
Medicare Levy, including Surcharge where applicable 856.95

Less
Tax Instalments deducted $20,226.00

Net Tax Refund for 2006/2007 $6,880.05


Hope was getting at least 10k, am I greedy? Account charged around 3k to do return, mainly to do with me not having everything prepared. Sent them down folders for each property.
Cheers
 
3k!!!! that sounds very steep to me [will be a good tax writeoff though:D ]
how long have you had these IP's for? if it wasnt for a whole yfinancial year then it doesnt really give a good indication, I wouldnt have turned my nose up at that though, you really end up paying around 17% over 20 years after tax, tennants pay about 70% government pay about 10, its a good deal when you consider capital growth, interest upon interest.
 
1st property nearly the full 12 months
2nd about 3 months


This year should better.

I have a 3rd IP now. So will have 3 IP for financial year.

Getting deprecation schedule on other two this year.

However rental income aside I should earn over 100k this year.

So it will be interesting times ahead to see how good the account is.

3k was steep, however I didn't help myself. I just sent him separate folders for each IP. Also had to add depreciating schedule etc.


I need to find a simple spreadsheet I think to keep a eye on things. I am also getting the PM to have everything paid from rental income. That way should I get the statement at end of financial year covering most things
 
Net Tax Refund for 2006/2007 $6,880.05

Hope was getting at least 10k, am I greedy? Account charged around 3k to do return, mainly to do with me not having everything prepared. Sent them down folders for each property.
Cheers

$3k!!! Wow! Were the properties in trusts or some other structure? I think we paid our accountant $200-$300 last year, we would have sat there at least an hour with him going through everything. We have depreciation schedules done, but pulled out every receipt we'd aqcuired over the year and had a bit of a chat as he typed it all in.....got over $10k back (after HECS and medicare).

Depreciation can be a major bonus, depending on your IP type. But, regardless, unless your returns are extremely time consuming or complicated, (days??) I don't know what you're paying $3k for?

Did he take his fee out before he gave you your return? You may have been spot on at $10k if that was before his fees?

Cheers,
Jen
 
I use H+R Block and we had 5 IPs each and she charges us $300. I think we must have spent over 2 hrs on 3 separate visits because of my very poor paperwork and filing. She wasn't happy that I use one general account for everything inc paying mortgage, rental money, wages, spending etc LOL It's because it's the only a/c I know off by heart then I'm slack too.

Still have to submit depreciation schedule to the depreciator...paid for it before end june but haven't given them details yet.
 
No, it will be 6k less there fees, so about 3k. They spent a couple of days to get things sorted so they tell me.


Both of you have done well with your accountant fees and refunds.

I wouldve love to got 10k back, means I couldve brought another cheap IP somewhere. Thinking about a retirement village apartment they are around 100k in some parts of Brisbane.

Oh well lesson learnt I guess, maybe I should change accountant. My MB recommend them; He hasnt payed any tax in last couple of years
 
Our pay office didn't take out any income tax from my pay for 2 months in a row now.
I am tempted not to tell them....:D
On the other hand if I don't tell them, I will be in for a surprise when I do next year's tax return..:eek:
Cheers
 
No, it will be 6k less there fees, so about 3k. They spent a couple of days to get things sorted so they tell me.


Both of you have done well with your accountant fees and refunds.

I wouldve love to got 10k back, means I couldve brought another cheap IP somewhere. Thinking about a retirement village apartment they are around 100k in some parts of Brisbane.

Oh well lesson learnt I guess, maybe I should change accountant. My MB recommend them; He hasnt payed any tax in last couple of years

You would have to have the most complicated portfolio in the world for them to take 2 whole days to sort your tax return. I'm sure they may have spent a couple hours or so over 2 days - I would question them further, ask what they charge per hour, and how much time they actually spent on your return - they should be able to show hours. And if that fee doesn't drop down to well under $500 - move elsewhere. (Unless of course, as I said, you do have the most complicated tax return imaginable - then stick with someone who can do it! :D )

Cheers,
Jen
 
3k!!!! that sounds very steep to me [will be a good tax writeoff though:D ]

CASH expenses are still costing you money. The fact that it's deductible just lessens the pain. There is no 'good' cash tax deduction. There is only 'it is better than if it wasn't deductible' and 'it was worth it because I got more return than it cost me'.

Seriously, W2BW. If all you want is lots of tax write-offs, I'll lend you money at 10%. Not trying to be sarcastic but you have to think about what tax deductions really mean.
Alex
 
It's hard to say whether the refund was under what is should be without looking at what was happening, but you had 7,992 in rental income and 29,609 in deductions (both work and rental).

You would have needed an extra $10k in deductions to get a 10k refund.

You can't even buy land for under $100k in Brisbane, I'd like to know where these units are.
 
Hope was getting at least 10k, am I greedy? Account charged around 3k to do return, mainly to do with me not having everything prepared. Sent them down folders for each property.
Cheers

There isn't any 'hope' in this sort of thing, OBJ. You get whatever you're entitled to. If you know what you're claiming (and if you don't, find out) then you should know exactly how much you're going to get back.
Alex
 
Units are retirement apartments. Plenty around for 100 to 130. I just dont know much about them yet and need to do more research.

Hopefully this year will better re tax refund.
 
loans in one account. very bad. did accountant do apportionment. in audit maybe domjan case apply and interest not deductible at all. sometimes u get what u pay for. you in trouble sue if audit. you need separate loans. maybe talk h&r block but most of them not professionals. just nurses and electricians that pass basic course. no qcs there.

i believe bad advice sue. i would ask for refund or fix it up. auditor not like one account with wages, etc all lumped together.
 
CASH expenses are still costing you money. The fact that it's deductible just lessens the pain. There is no 'good' cash tax deduction. There is only 'it is better than if it wasn't deductible' and 'it was worth it because I got more return than it cost me'.

Seriously, W2BW. If all you want is lots of tax write-offs, I'll lend you money at 10%. Not trying to be sarcastic but you have to think about what tax deductions really mean.
Alex

Alex, I thought the smilie face indicated that I was obdviously joking..:D
 
Accounts

So I should have seperate accounts for each properpty?

I do have seperate loans
But all rent, salary and outgoings etc are with the one savings account.
 
So I should have seperate accounts for each properpty?

I do have seperate loans
But all rent, salary and outgoings etc are with the one savings account.

Just don't mix personal and investment expenses by having a separate account for private stuff.

If you have a few properties, having one property per account is just a pain in the back side, because you have to keep money in each. I've found a max of 3 properties per bank account is good.
Alex
 
Account charged around 3k to do return, mainly to do with me not having everything prepared. Sent them down folders for each property.
Cheers

Wow, I paid $1100 for four tax returns inc business, IPs, share dividends and CGT etc etc. Plus most of my records were loose. Plus I used an accountant not a tax return para.

I hope your guy added a lot of value for that $3K :eek:
 
I'd recommend getting depreciating schedules done, if you need to, then doing it all yourself using eTax. There's really nothing to it, especially for 2 IPs and no other complex structures.

Our business accountant charged 3K for an entire year of quarterlys and the end of year return including group certificates and GST! We pay for this, then do our own personal returns.
 
So I should have seperate accounts for each properpty?

I do have seperate loans
But all rent, salary and outgoings etc are with the one savings account.

You probably don't really need seperate accounts for each property - unless they're in structures or different names - the end of year reports from you Property Manager should give you most of the income and expenses in one simple sheet you can handover to your accountant (if you have the PM pay the expenses). Your bank will tell you the end of year interest paid on each loan account - just send the totals through. Depreciation schedules are really helpful too, one simple summary page for the next 10 or 20 years - handover to the accountant.

Now, while I say that - I spend days with papers all over the floor trying to sort out what massive pile of junk to bring into our poor accoutant. :eek: That's because I'm horrible at keeping track of all the "little things" - especially receipts - I keep everything, but can never find it! :D

But the easiest part is handing over those end of year statements which summarise it all!

Cheers,
Jen
 
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