According to her Duo Tax depreciation schedule, Sarah could claim $6,300 depreciation in her first year.
Sarah’s numbers without a depreciation claim
Sarah’s numbers with a depreciation claim of $6,300
Without depreciation, Sarah had to pay $133 out of her own pocket each week. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, Sarah reduced that weekly payment by $45 per week.
This means that Duo Tax was able to save Sarah a total of $2,331 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, Sarah can continue saving money each year, as long as she continues to own the property.
Our Duo Tax Rental Property Depreciation Calculator is free, so make sure to check it out!