An Apartment Purchased in 2010 for $415,000
The Numbers: Emily’s Investment Property
Type of Purchase
Rent
Expenses
While Emily 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 Emily’s cash position with and without depreciation in her first year of turning the apartment into an investment property.
According to her Duo Tax depreciation schedule, Emily could claim $4,800 depreciation in her first year.
Emily’s numbers without a depreciation claim
Emily’s numbers with a depreciation claim of $4,800
Without depreciation, Emily had to pay $48 out of her own pocket each week. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, Emily reduced that weekly payment by $13 per week.
This means that Duo Tax was able to save Emily a total of $1,776 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, Emily 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.
Obtain your tax depreciation schedule in 3 easy steps.
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