A House Built Before 1987 Purchased for $439,000
The Numbers: Oliver’s Investment Property
Type of Purchase
Oliver renovated the kitchen and bathroom and installed new blinds and floor coverings. As a result, he is able to claim depreciation on the property’s newly installed plant and equipment (Division 40) assets and the property’s capital works (Division 43) deductions.
Without Depreciation vs With Depreciation Services
The following cost breakdown shows Oliver’s cash position with and without depreciation in his first year of owning the property.
According to his Duo Tax depreciation schedule, Oliver could claim $5,800 depreciation in his first year.
Oliver’s numbers without a depreciation claim
Oliver’s numbers with a depreciation claim of $2,146
Without depreciation, Oliver had to pay $49 out of his own pocket each week. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, he significantly reduced that payment to $8 per week.
This means that Duo Tax was able to save Oliver a total of $2,146 in his first year of owning the investment property.
The great thing about his depreciation schedule is that it’s valid for up to 40 years! So, Oliver can continue saving money each year, as long as he continues to own the property.
Here’s How Much You Could Be Claiming
However, if you’re still feeling unsure about committing to ordering a depreciation schedule, we have designed a tax depreciation calculator to help you estimate what you could potentially claim on tax depreciation.
This is an accounting tool designed to help estimate and calculate the declining value of capital works and plant and equipment assets and relies on accurate figures to present accurate estimations.