Tax time is my favourite time of the year – and yes, I’m serious!
I genuinely like this time of the year because it gives me a chance to get my finances in order. It’s also an excellent way to review my expenses to see if anything can be negotiated and changed for the following year, which can put me in an even better financial position (especially if I have a baby coming, want to travel as well as looking to invest in more things).
However, before I lodged my tax return this year, I shopped around to find a new accountant to see if someone else was able to service my needs better. What happened as a result of doing this was incredible! After having a discussion with another accountant, they pointed out that my previous accountant incorrectly calculated the depreciation figures for my investment properties. This small error meant I was entitled to an extra $27,000!
So how can you make sure your depreciation is calculated correctly?
It’s easy to skim through your tax return and just sign it – as I did. I quickly glance over the main sections, but when it comes to the part that includes your income and expenses with your investments you need to check if these have been calculated correctly. I assumed my previous accountant calculated these figures correctly because he had copies of my depreciation reports.
If my new accountant Arthur Kolodziejczuk from Knightstone hadn’t of picked this up, I doubt I would have discovered this error.
Other money related posts: