Brand New Office Purchased for $504,000
The Numbers: Noah’s Investment Property
Type of Purchase
Commercial property owners can claim depreciation deductions for the building’s structure as well as any assets they own within their property. So Noah can claim depreciation on the plant and equipment (Division 40) assets that he owns and the offices’ capital works (Division 43) deductions.
Without Depreciation vs With Depreciation Services
The following cost breakdown shows Noah’s cash position with and without depreciation in his second year of owning the office space.
According to his Duo Tax depreciation schedule, Noah could claim $15,100 depreciation in his first year.
Noah’s numbers without a depreciation claim
Noah’s numbers with a depreciation claim of $15,100
Without depreciation, Noah was only generating $55 of profit from his office space investment. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, he started generating $163 each week – which is $107 more than before his depreciation claim.
This means that Duo Tax was able to save Noah a total of $5,587 in his second year of owning the office space.
The great thing about his depreciation schedule is that it’s valid for up to 40 years! So, Noah can continue saving money each year, as long as he owns the office space.
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.