The following cost breakdown shows Chris’ cash position with and without depreciation in his first year of owning the property.
According to his Duo Tax depreciation schedule, Chris could claim $7,800 depreciation in his second year.
Chris’s numbers without a depreciation claim
Chris’s numbers with a depreciation claim of $7,800
Without depreciation, Chris had to pay $94 out of his own pocket each week. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, Chris reduced that amount to only $39.
This means that Duo Tax was able to save Chris a total of $2,886 in his second year of owning the investment property.
The great thing about his depreciation schedule is that it’s valid for up to 40 years! So, Chris can continue saving money each year, as long as he continues to own the property.
Our Duo Tax Rental Property Depreciation Calculator is free, so make sure to check it out!