The following cost breakdown shows Melanie’s cash position with and without depreciation in her first year of owning the property.
According to her Duo Tax depreciation schedule, Melanie could claim $5,200 depreciation in her first year of using the property as an investment.
Melanie’s numbers without a depreciation claim
Melanie’s numbers with a depreciation claim of $5,200
Without depreciation, Melanie had to pay $9 out of her own pocket each week. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, Melanie started generating $28 per week.
This means that Duo Tax was able to save Melanie a total of $1,924 in her first year of turning her property into an investment.
The great thing about her depreciation schedule is that it’s valid for up to 40 years! So, Melanie 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!