Case Study

An Apartment Built Before 1987 Purchased for $362,000

By ordering a Duo Tax depreciation schedule and claiming depreciation on his apartment built before 1987, Declan went from being in a significant negative cash flow position to generating income from his investment.
In other words, Declan no longer had to pay out-of-pocket for any expenses as he was now saving $1,776 in his first year of claiming tax deductions for depreciation.
Here's how.
An Apartment Built Before 1987 Purchased for $362,000

The Numbers: Declan’s Investment Property

Here are some figures regarding Declan’s investment property:

Type of Purchase

He purchased an apartment that was originally built before 1987 for $362,000 in 2021 and rented it out immediately.


His yearly rental amounted to $19,240 per year—which is a weekly rental of $370.


The property’s expenses amounted to $21,108, covering his interest repayments, management fees, rates and maintenance.

While Declan purchased an older property, the previous owners renovated the kitchen and bathroom and installed new blinds and floor coverings before selling it, permitting Declan to claim deductions for the depreciation on the property’s plant and equipment (Division 40 assets)

Declan can also claim deductions for the property’s capital works (Division 43) deductions, including the cost of the renovations in the kitchen and bathroom. 

Without Depreciation vs With Depreciation Services

The following cost breakdown shows Declan’s cash position with and without depreciation in his first year of owning the property. 

According to his Duo Tax depreciation schedule, Declan could claim $4,800 in depreciation in his first year.

An Apartment Built Before 1987 bought for $362,000

Declan’s numbers without a depreciation claim

Annual Rental Income
$370 x 52 weeks
Annual Property Expenses
Net Income (Pre-tax)
Income minus expenses: $19,240 - $21,108
Total Taxation Loss With No Depreciation
Tax Refund
Tax loss x tax rate: -$1,868 x 37%
Annual Costs of the Investment Property
Net income + tax refund: (-$1,868) + $691
Weekly loss

Declan’s numbers with a depreciation claim of $4,800

Annual Rental Income
$370 x 52 weeks
Annual Property Expenses
Net Income (Pre-tax)
Income minus expenses: $19,240 - $21,108
Total Taxation Loss With Depreciation
Net income + depreciation: (-$1,868) + ($4,800)
Tax Refund
Total Taxation Loss x Tax Rate: -$6,668 x 37%
Annual Income from the Investment Property
Net Income + Tax refund: (-$1,868) + ($2,467)
Weekly income
Difference of $34 per week / $1,776 per year

Without depreciation, Declan would’ve had to pay $22 out of his own pocket each week. Fortunately, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, he started generating $12 per week in rental income from the property. 

This means that Duo Tax could save Declan a total of $1,776 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, Declan can continue saving money each year, as long as he owns the property.

Here’s How Much You Could Be Claiming

As you can see from Declan’s scenario, tax depreciation schedules can make a significant difference in an investor’s cash flow each year.

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.
Rental Property Depreciation Calculator

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Step 1
Qualify your Property
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Step 2
Order a Report
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Step 3
Claim Maximum Deductions
Within approx. 5 business days your report will be delivered to you and your accountant.
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