PAYG Withholding Variation and Depreciation Schedule

Hi all,

I have been quoted $3,400 by an accounting firm to complete a PAYG Withholding Variation on my husband's tax and to construct a depreciation schedule for our very old (possibly 50 years old) IP.

Rip off, or reasonable?

Cheers,

Jo

 

Very expensive unless you have unusually complex situation

 

No, it's not complex. I was suspecting it was a bit steep - gosh I am glad I have found this forum! I have already learned so much in just 2 days.

 

Normal PAYG salary and some residential properties? Could probably fill it out yourself or use an hour ($200?) of your accountant's time to assist.

Depreciation Schedule get @Depreciator to do, (NOT an accountant) they give a discount if you say you're from Somersoft Forums.

 

Very interesting!! They make it (Variation) sound extremely complex - I am a bookkeeper and I asked them if it's accessible for me to do myself. Apparently it would be too complicated. They used lots of tricky terminology and totally put me off wanting to do it myself, in case I messed it up and put our whole financial strategy in ruins. My husband is on a normal PAYG wage and we have only one residential property.
Geez, now I really feel gullible! lol

 

No question is stupid..you only know what you know.

It takes a higher intelligence to actually admit you don't know the answer and ask a question..pride has caused many failures...

 

Seems extremely expensive

 

Jo

A PAYGV may take about similar time to prepare compared to a basic tax return. If you have all your 2016 estimates and most recent payslip its not too hard. If you are disorganised it would cost more. My tip is to take your last return and copy it. Pencil in reliable estimates then slightly reduce deductions. You want to leave room for error. Then consider what may change too...Be conservative with deductions and allow extra for income but don't go wild either. eg : Ignore fees for tax prep etc and leave such things until year end so you also get a refund then too.

If things change during 2016 be prepared at amend it also.

A QS report may cost up to $800 sometimes a bit more is a large building. Sometimes far less too. Call BMT or Depreciator for a estimate.

 

Agree. Do your WHV yourself, especially if you are a bookeeper! I did mine last week - 4 IPs, took about 50 mins. And call Depreciator for a schedule. Job done.

 

You're being taken for a ride, I think.

I did my own PAYG variation. Sure, it took a few hours and I keep good records so it was straightforward (would abeen painful otherwise), and I don't recommend it for everyone but that's a gyp.

Depreciation schedule should be sub-$750 (hit up @Depreciator as others have mentioned).

 

No two ways about it - an absolute ripoff.
With the dep schedule - if this is a 50 yo IP I would question the need for a report anyway unless you can see a fair whack of renovation work done post '85. Get quotes from a QS in any case not an accountant.
For the PAYGV - if its much more than $200 or so....call the cops. (Unless you're Nathan Birch in disguise Lol).
Time I retired from stealing chickens and became a Tassie accountant!

 

haha Foxy *****! The accountant is in Qld. I will give them a no thanks!

 

No, no, no! Myth!

Even an unrenovated older property will usually get $1500-$2500 in deductions in the first full financial year. This is enough for any depreciation schedule to provide an overall saving for the vast majority of investors. Renovations will only take that upwards, of course.

Yes, yes, yes!

 

Payg variation you can do on the ATO website.
The key is the preparation though.
Use spreadsheets, and categorise projected expenses.
Use formulas to project your costs eg loan x interest rate. Rent x48 weeks etc.

For depreciation - definitely get a QS like depreciator. Their Schedules usually contain much better information and higher deductions. Your accountant may be outsourcing it for that cost anyway.

For a real good laugh, read about the user "fullylucky" and his home made depreciation schedule on Somersoft.com forum as well
Don't try this at home: http://somersoft.com/forums/showthread.php?t=103526&highlight=fullylucky

 

I actually did laugh out loud reading that! Thanks for the laugh - I needed that.