You’ve secured your investment property, the tenants are in and paying rent and everything is running smoothly, it may only be mid January but now is the time search out the accountant that will give you the best possible support over the coming years. Finding a good accountant that will help you to maximise your tax deductions is imperative. Here are a few things you can do to make sure your find the right one;
Do they know their investment property stuff?
Everyone is entitled to claim expenses which have legitimately been incurred in the course of earning their taxable income and the expenses on your investment property are no different. The tax office even has a breakdown of costs which are claimable for certain industries. You should choose an accountant that is familiar with your profession as they will be aware of additional items you can claim which may be overlooked by an accountant unfamiliar with your particular industry.
Can you relate to them?
Quite often accountants talk in their own language of financial terms and tax jargon. This can be confusing and can lead to you not understanding exactly what you can or cannot claim. The more you understand about the process the better your record keeping will be and this in turn will lead to a better tax position. Your accountant should be able to explain complicated accounting principles to you in simple to understand language.
Can you trust them?
The difference between tax minimization and tax avoidance is huge. You want to find someone who is proactive and on your side. You are perfectly entitled to claim as much as you legitimately can in order to minimize your tax payable. But beware, if any deduction claimed is questioned and found to be inappropriate you will be responsible for this. You therefore must feel confident with your accountant and trust that they are completing your tax obligations for your investment property within the guidelines stipulated by the Australian Tax Office