New to property investing. at what point do i need a accountant?

Discussion in 'Accounting & Tax' started by Synergy, 6th Jun, 2019.

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  1. Synergy

    Synergy Well-Known Member

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    Just settled our first IP in Brisbane, it is still to be built (slab going down in the next week)

    At what point do i need to get a accountant from this point? I would like one that has IP's of there own so they know exactly what they can claim. I have been speaking to one and gave me this price... Is this a normal price because it seems quite high?

    "Our Standard Accounting & Tax Package includes:
    • Income Tax Return – PAYG Summaries and Tax deductions / Rebate claims
    • Rental Schedule – up to 2 properties
    • 1 CGT event per year
    • PAYG Variation form
    • Attendance to ATO correspondence
    • Advice and Consultation (Via email)
    Standard Package:
    Individual - $500 + GST
    Couple - $850 + GST"

    My partner is about to have a baby and dont think she will go back to her current workplace, Is there no point in getting her a payg variation form? Just do it in my name? I usually do my own tax, does he need to do it now?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    As soon as you start requiring advice eg. the names to buy the property

    The baby is a bit young to do a tax return.
     
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  3. Trainee

    Trainee Well-Known Member

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    A few things
    Have you done a depreciation report?

    Why do you think 500 is expensive? What are you comparing it to?

    What do you expect. Eg do you expect to get a tax refund as a result of using an accountant?

    Do you know how to do it yourself?
     
  4. Synergy

    Synergy Well-Known Member

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    Was just a general question as I dont know what a standard price is for these things are.

    Havnt done a depreciation report as its still dirt atm. Only a certain companies do this job?
     
  5. Trainee

    Trainee Well-Known Member

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    Point is there are some things you can do yourself to help things. Making sure you have a depreciation report. Having all the paperwork neatly filed. Keep receipts of everything that might be a deduction.

    Then its about your expectations. For a standard payg and ip type thing, there arent that many secrets. The accountant is more making sure your return is correct. If you think they should be teaching you secret tax deductions and they dont because there arent any, you might not think its worth it.

    If you dont value cleaning up your paperwork (assuming, like most people, you just put everything in a box) then you might think its too expensive.
     
  6. Synergy

    Synergy Well-Known Member

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    Ok, good to know, he said dont bother with a payg variation only if the property is negative geared?
     
  7. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I can all but guarantee that the investment property will be negatively geared. It's rare that I see a property that isn't negatively geared when its purchased or built.

    Personally though, I wouldn't bother with a PAYG variation at all. All this does is give the gearing tax refund in small amounts with each payslip, instead of a lump sum when you do your tax. Most people would then spend it and the money simply disappears.

    I prefer to get it as a lump sum each year. I then use it to pay off some of the mortgage, or buy something I've been saving for, or enjoy a holiday.


    Do you need and accountant? The answer is yes, both of you need it now that you'll own an investment property. I'd suggest that $850 is extremely cheap for a couple - don't take that as an endorsement.
     
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  8. Trainee

    Trainee Well-Known Member

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    Do you know what a payg variation is and is meant to do?
     
  9. Cate Bell

    Cate Bell Well-Known Member

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    Fair price, actually a bit on the cheap side. In over 30 years of property, I have never done my own returns. A good accountant will usually save you a lot of stress and money over the long term. My accountant has a large property portfolio herself, and has been a valuable resource over many years.
     
  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    1. PAYGWV may be unnecessary. But may assist to give value. Many people dont want a PAYGWV as they like the lump sum. It depends.
    2. One free CGT event - Is that property of a single parcel of shares? What happens if its a small portfolio of shares etc ? What happens when it a property and its more complex or even exempt ?

    For a couple with 2 x IPs our basic services are around $600 (total) as a guide but that doesnt include a variation. A single variation is under $200....Looks similar except for the issue with GST. Our includes GST as I will explain.....

    Thats uber dodgy to quote + GST. ACCC consider it misleading and deceptive conduct except if they solely and exclusively deal with businesses. All pricing for personal tax services in Australia should be inclusive of GST according to the ACCC. Given GST has existed since 2000 and they are tax advisers they should know better.

    And whats a rebate claim ??? I have never encountered that term. The word rebate was eliminated from tax law almost 2 decades ago.

    An accountant doesnt need to own property to know tax well. Thats like suggesting your oncologist needs to have cancer to be good. as a cancer surgeon.
     
  11. bunkai

    bunkai Well-Known Member

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    Seems a little expensive to me.

    Doesn't make any sense to pay for two properties when you only have one?

    Get an accountant to do it a few times then you can decide to do it yourself if you really want.
     
  12. QldKoolies

    QldKoolies Well-Known Member

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    I think you should make sure your advisors are savvy in the areas you want to take part. This forum is a good start. Don't be afraid to be nosey, its your future after all. You can request to speak to any repeat clients that are property investors, use contributors to this forum or ask people you know that have been successful in property investing.
     
  13. QldKoolies

    QldKoolies Well-Known Member

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    Bad advice costs more than good advice in the end!
     
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  14. Mike A

    Mike A Well-Known Member

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    If you ask lots of questions could be cheap. Value not price is what is important.
     

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