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Accountant made a mistake?

Discussion in 'Accounting & Tax' started by striple, 31st Jul, 2015.

  1. striple

    striple Active Member

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    Hi all,

    Hope you can help. I just did my taxes and I think my accountant made a mistake. I have 3 investment loan against 3 properties... Well I also have a 4th loan which was setup using equity from my PPOR. This 4th loan is for deposits and bills and it's linked to another account where I place excess funds to offset this 4th account... Should my accountant have included this in my tax return?
     
  2. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Have you mentioned this to your accountant?
     
  3. striple

    striple Active Member

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    I did briefly as he was rushing to get ours done... He was flat out that morning... If I'm right and this should have been included, what options do I have? Is it too late for this financial year and can I claim it and back date it for next financial year?
     
  4. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    What is clear to you will not be as clear to them. Discuss it with the accountant and they can easily amend to fix it. Its easy to fix. You will need to sign the amended return authority.

    If it was me I would document the account numbers and loan amounts so that next year I'm checking for the interest for the four loans and allocating correctly to the respective IPs. When you have loads of clients and most have multiple properties you need such processes to review for whats changed and to identify possible errors or misunderstandings.

    There is a two-four year amendment period so plenty of time. No you don't include in next year.
     
  5. striple

    striple Active Member

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    Thanks Paul...Good to know. I'll be contacting my accountant
     
  6. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Striple - Was it me ?
     
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  7. striple

    striple Active Member

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    LOL no not you...
     
  8. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I dont make mistakes. I thought I did once but I was wrong. :)
     
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  9. striple

    striple Active Member

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    Haha based on all your replies I've seen in the past, I think you would rarely make any mistakes
     
  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    They should only have included it if you gave them the summary and specified which property the interest related to.

    If you didn't then it is not their mistake but yours.
     
  11. Coota9

    Coota9 Well-Known Member Premium Member

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    My concern in reading through this is your accountant "rushing" through your return because he was "busy",correct me if I am wrong but I would have thought you would have had a block of time booked in to complete your return and for your accountant to work through your situation to get your maximum refund.!!
     
  12. Greyghost

    Greyghost Well-Known Member

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    Get what you pay for.. Sounds like your accountant is more a tax agent than accountant..
     
  13. striple

    striple Active Member

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    He over booked I think... He had 3 other parties waiting to see him while doing our return... yes I believe it's my mistake and will contact him on Monday to get it addressed.
     
  14. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    A good property tax agent will always look at the information the client provides with a view to identifying errors / misunderstandings. Things I see:
    - Incomplete info eg insurance missing
    - Summary shows 50% of income and costs rather than total to be shared.
    - Doesn't add up
    - Duplication or missing info
    - Capital costs on a QS report v's not on a QS report
    - Capital costs under repairs
    - Borrowing cost mistakes (5 yrs, 100% deductible, residual claims)
    - Some QS reports show the respective owner interests - Double it !!
    - New acquisitions : No settlement costs OR they are incorrectly included. eg arrears of council rates are not paid by owner but a settlement adjustment.

    Tax advice and tax work is a bit like contracts. You both have to work it out so you both agree. I explain some things to them and they explain what they have meant to me. I can easily misunderstand them and they often misunderstand me. I'm comfortable with client queries and discussion as it can even find things that are missing. If I don't encourage them they wont know.