Can my accountant write a letter to my investment manager, mortgage broker, or bank manager, to show my taxable income?
Your accountant can send an accountant’s letter to your investment manager, mortgage consultant, or bank manager, to verify your income. Your accountant is able to send the letter directly to your mortgage consultant via email, facsimile, or by mail.
Your lending institution will require an accountant’s letter if it’s unable to obtain any of your relevant income tax returns, notices of assessment, financial statements or business activity statements (BAS). Lending institutions will need to verify your income, as a precautionary measure, to ensure that you will be able to comfortably meet the loan repayments.
What is an Accountant’s Letter?
An accountant’s letter is a letter written and signed off by a qualified accountant. A qualified accountant is one who has met the specific requirements of a professional accounting body and attained a specific membership classification. Your accountant will print the letter on their letterhead and it will state your taxable income, or alternatively, your projected taxable income for the current year. The letter is useful if you require verification of your income but haven’t submitted a recent tax return.