Tax is not for the DIYers

Female

The following story indicates the folly of trying to prepare your own tax returns.

It involves a taxpayer who bought three properties. He paid costs for his business and his rental, plus personal costs, from personal credit cards and funds in a revolving credit account. He also put all his income into the revolving credit account.

He mixed up his personal, his business and his rental income and expenditure.

When it came to a claim for interest on money borrowed, he was unable to identify precisely how much had been borrowed to finance the rentals. As he couldn’t prove the amount, Inland Revenue allowed none of the expense.

Believe it or not, in spite of his family trust owning one of the properties, he returned the rental income as his own income. To make things even worse he bought furniture, carpet, stove and other household items and couldn’t show that these were actually bought for the rental properties.

Inland Revenue had a field day. Don’t let this happen to you. Let us deal with tax issues so you can claim all your entitlements and be compliant with tax laws.