Case Study

Brand New Warehouse Built for $1,870,000

By ordering a Duo Tax depreciation schedule and claiming depreciation on his new warehouse, Steve could significantly increase his investment income and boost his cash flow position.
He ended up saving $16,830 in his first year of owning the property!
Here's how.
Brand New Warehouse Built for $1,870,000

The Numbers: Steve’s Investment Property

Here are some figures regarding Steve’s investment property:

Type of Purchase

he built a warehouse in 2017 with a high quality upstairs office area with timber floor coverings, ducted air conditioning, a kitchenette area and a bathroom.


he secured tenants immediately who currently pay $1,830 rental per week - which is $95,160 per year.


the warehouse expenses amounted to $86,037, covering his interest repayments, management fees, rates and maintenance.

Commercial property owners can claim depreciation deductions for the building’s structure as well as any assets they own within their property. So Steve 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 Steve’s cash position with and without depreciation in his first year of owning the warehouse. 

According to his Duo Tax depreciation schedule, Steve could claim $37,400 depreciation in his first year. 

Brand New Warehouse Built for $1,870,000

Steve’s numbers without a depreciation claim

Annual Rental Income
$1,830 x 52 weeks
Annual Property Expenses
Net Income (Pre-tax)
Income minus expenses: $95,160 - $86,037
Net Income With No Depreciation
Tax Payable
Tax loss x tax rate: $9,123 x 37%
Annual Income from the Investment Property
Net income + tax refund: ($9,123) + -$4,105
Weekly income

Steve’s numbers with a depreciation claim of $37,400

Annual Rental Income
$1,830 x 52 weeks
Annual Property Expenses
Net Income (Pre-tax)
Income minus expenses: $95,160 - $86,037
Total Taxation Loss With Depreciation
Net income + depreciation: ($9,123) + ($37,400)
Tax Refund
Total Taxation Loss x Tax Rate: -$28,277 x 37%
Annual Income from the Investment Property
Net Income + Tax refund: ($9,123) + ($12,725)
Weekly income
Difference of $324 per week / $16,830 per year

Without depreciation, Steve was only generating $96 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 $420 each week – which is $324 more than before his depreciation claim.

This means that Duo Tax was able to save Steve a total of $16,830 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, Steve can continue saving money each year, as long as he continues to own the warehouse.

Here’s How Much You Could Be Claiming

As you can see from Steve’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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