Brand New Warehouse Purchased for $685,000
The Numbers: Michael’s Investment Property
Type of Purchase
Rent
Expenses
Commercial property owners can claim depreciation deductions for the building’s structure as well as any assets they own within their property. So Michael 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 Michael’s cash position with and without depreciation in his first year of owning the warehouse.
According to his Duo Tax depreciation schedule, Michael could claim $15,700 in depreciation in his first year.
Michael’s numbers without a depreciation claim
Michael’s numbers with a depreciation claim of $15,700
Without depreciation, Michael was only generating $55 of weekly profit from his warehouse investment. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, he started generating $167 each week – which is $112 more than before his depreciation claim.
This means that Duo Tax was able to save Michael a total of $5,809 in the first year of owning the warehouse.
The great thing about his depreciation schedule is that it’s valid for up to 40 years! So, Michael can continue saving money each year, as long as he continues to own the warehouse.
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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