A Warehouse Built in 2006 for $450,000
The Numbers: Michaela’s Investment Property
Type of Purchase
Rent
Expenses
Commercial property owners can claim depreciation deductions for the building’s structure as well as any assets they own within their property. So Michaela can claim depreciation on the plant and equipment (Division 40) assets that she owns and the offices’ capital works (Division 43) deductions.
Without Depreciation vs With Depreciation Services
The following cost breakdown shows Michaela’s cash position with and without depreciation in her first year of owning the warehouse.
According to her Duo Tax depreciation schedule, Michaela could claim $12,200 depreciation in her first year.
Michaela’s numbers without a depreciation claim
Michaela’s numbers with a depreciation claim of $12,200
Without depreciation, Michaela was only generating $5 of weekly profit from her warehouse investment. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, she started generating $92 each week – which is $87 more than before her depreciation claim.
This means that Duo Tax was able to save Michaela a total of $4,524 in the first year of owning the warehouse.
The great thing about her depreciation schedule is that it’s valid for up to 40 years! So, Michaela can continue saving money each year, as long as he continues to own the warehouse.
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.
Obtain your tax depreciation schedule in 3 easy steps.
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