An Apartment Purchased in 2010 for $459,000
The Numbers: Isabella’s Investment Property
Type of Purchase
Rent
Expenses
While Isabella wasn’t able to claim deductions for the depreciation on the property’s existing plant and equipment (Division 40 assets), she was able to claim depreciation on the property’s capital works (Division 43) deductions.
Without Depreciation vs With Depreciation Services
The following cost breakdown shows Isabella’s cash position with and without a depreciation claim.
According to her Duo Tax depreciation schedule, Isabella could claim $10,100 in depreciation in her first year.
Isabella’s numbers without a depreciation claim
Isabella’s numbers with a depreciation claim of $10,100
Without depreciation, Isabella had to pay $45 out of her pocket each week. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, Isabella started pocketing $27 each week.
This means that Duo Tax saved Isabella $3,737 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, Isabella can continue saving money each year as long as she owns 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.
Obtain your tax depreciation schedule in 3 easy steps.
How can we help?
Office Hours
