I would be glad to have feedback on what you think is a fair fee for a tax return for a typical salary earner with an investment property.
How much should the fee increase per investment property and should there be a higher fee in the year that a property is acquired?
it is greatly dependent upon the quality of the information provided. Ie someone who presents with a shoebox would be charged more than one who presents with itemised & ordered income/expenditure statements in excel myob etc. Thus reflecting the actual work required for the client.
Hi Ashley,
If you use H&R Block as a typical example, they quoted a colleague of mine $225 for employee + 1 rental tax return.
Our price is about the same, and we add $75-$90 for each additional property. Any more than three and we'd talk to you about rental management software to make it easier.
The first year should be more because you should be putting together a CGT asset register (record of the cost base) and a schedule of deductible borrowing costs. It's much better than trying to do it when you sell. That would be $150.
Then there is the PAYG withholding varation. There are more work for the first year of owning each additional property, and that is a separate service to the tax return.
From your previous technical comments I take it that you're in tax or legal?
By the way, thumbs up to Scott's comment. Spot on mate. Shoeboxes are expensive things.
I like the "shoebox" . My clients give me the shoebox, I process it, explain the reports to them and then pass it onto the tax agent.
firstly , what is fair?
secondly, what is typical?
for your penultimate sentence – <moderator: delete language> wot do you reckon? you can't make this stuff up LoL
!seriously, ITR's are a commoditised product. meaning accountants in this type of target market place are history recorders, nothing more. Jorrod has done the ethical thing and priced it up front. if he is efficient then he wins, if he is inefficient then you win, but either way you know what you are going to pay. no surprises, end of story
hope this helps
Tony
Are ITRs a comodotised product?
Perhaps they are perceived as such by some. However, as a professional I know that a lot of operators produce them very cheaply and make alot of mistakes in the process.
Although people don't like doing their tax and having to pay for the priveledge the pain that arises out of an ATO audit where you have problems can be severe. Alternatively, extra tax paid because the accountant didn't get it right hurts too.
In my view the more savy recognise that "you get what you pay for".
Our starting price for a simple ITR starts at $250 and increases based on the volume and complexity. We scope this out and advise clients upfront so they know what to expect.
People who charge more are not imune to mistakes (take your pick; Arthur Anderson, Moodys, S & P spring to mind and the consequences far far greater….)
if you really want to know what others charge then suggest it could be slightly better (only just) to get a larger sample
http://robknights.com.au/cgi-bin/user.pl?download_file=1&file=220
Tony
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