A New Apartment Purchased for $757,000
The Numbers: Amelia’s Investment Property
Type of Purchase
Because Amelia has invested in a brand new apartment, she can claim deductions for the depreciation on the property’s 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 Amelia’s cash position with and without depreciation in her first year of owning the property.
According to her Duo Tax depreciation schedule, Amelia could claim $20,300 depreciation in her first year.
Amelia’s numbers without a depreciation claim
Amelia’s numbers with a depreciation claim of $20,300
Without depreciation, Amelia had to pay $95 out of her own pocket each week. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, she went from covering the loss to actually generating $50 each week.
This means that Duo Tax was able to save Amelia a total of $7,511 in her first year of owning the investment property.
The great thing about her depreciation schedule is that it’s valid for up to 40 years! So, Amelia can continue saving money each year, as long as she 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.