Case Study

An Apartment Purchased in 2010 for $459,000

By ordering a tax depreciation schedule and claiming depreciation on an apartment she recently turned into an investment property, Isabella went from being in a significant negative cash flow position to generating a positive cash flow.
In fact, despite only claiming depreciation years after purchasing the property, Isabella still managed to save $3,737 in her first year of owning the property!
Here's how.
An Apartment Purchased in 2010 for $459,000

The Numbers: Isabella’s Investment Property

Here are some figures regarding Isabella’s investment property:

Type of Purchase

She purchased an apartment in 2010 for $459,000 and started renting it out immediately.


Her yearly rental amounted to $22,100 per year—which is a weekly rental of $425.


The property’s expenses amounted to $25,827, covering her interest repayments, management fees, rates, and maintenance.

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. 

An apartment purchased in 2010 for $459,000

Isabella’s numbers without a depreciation claim

Annual Rental Income
$425 x 52 weeks
Annual Property Expenses
Net Income (Pre-tax)
Income minus expenses: $22,100 - $25,827
Total Taxation Loss With No Depreciation
Tax Refund
Tax loss x tax rate: -$3,727 x 37%
Annual Costs of the Investment Property
Net income + tax refund: (-$3,727) + $1,379
Weekly loss

Isabella’s numbers with a depreciation claim of $10,100

Annual Rental Income
$425 x 52 weeks
Annual Property Expenses
Net Income (Pre-tax)
Income minus expenses: $22,100 - $25,827
Total Taxation Loss With Depreciation
Net income + depreciation: (-$3,727) + ($10,100)
Tax Refund
Total Taxation Loss x Tax Rate: -$13,827 x 37%
Annual Income from the Investment Property
Net Income + Tax refund: (-$3,727) + ($5,116)
Weekly income
Difference of $72 per week / $3,737 per year

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

As you can see from Isabella’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

Obtain your tax depreciation schedule in 3 easy steps.

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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