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PAYG Withholding Variation and Depreciation Schedule

Discussion in 'Accounting & Tax' started by Jog21, 20th Jul, 2015.

  1. Jog21

    Jog21 Active Member

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    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
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Very expensive unless you have unusually complex situation
     
  3. Jog21

    Jog21 Active Member

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    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.
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    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.
     
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  5. Jog21

    Jog21 Active Member

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    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
     
  6. Coota9

    Coota9 Well-Known Member Premium Member

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    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...
     
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  7. MikeLivingTheDream

    MikeLivingTheDream BCOM MCOM MTAX CPA CTA Registered Tax Agent

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    Seems extremely expensive
     
  8. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    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.
     
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  9. chindonly

    chindonly Well-Known Member

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    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.
     
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  10. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    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).
     
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  11. Foxy Moron

    Foxy Moron Well-Known Member

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    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!
     
  12. Jog21

    Jog21 Active Member

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    haha Foxy Moron! The accountant is in Qld. I will give them a no thanks!
     
  13. BMT Tax Depreciation

    BMT Tax Depreciation Chris Business Member

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    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!
     
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  14. DanW

    DanW Well-Known Member

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    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
     
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  15. Jog21

    Jog21 Active Member

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