An Existing Granny Flat Purchased with 10-Year-Old Property
The Numbers: Evelyn’s Granny Flat Property
Type of Purchase
Rent
Expenses
While Evelyn 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 Evelyn’s cash position with and without depreciation in her first year of owning the property.
According to her Duo Tax depreciation schedule, Evelyn could claim $2,800 in depreciation in her first year.
Evelyn’s numbers without a depreciation claim
Evelyn’s numbers with a depreciation claim of $2,800
Without depreciation, Evelyn was only generating $82 of profit from the existing granny flat. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, she started generating $101 each week – which is $19 more than before her depreciation claim.
This means that Duo Tax saved Evelyn a total of $1,036 in her first year of owning the granny flat.
The great thing about her depreciation schedule is that it’s valid for up to 40 years! So, Evelyn 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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