The following cost breakdown shows Oliver’s cash position with and without depreciation in his first year of owning the property.
According to his Duo Tax depreciation schedule, Oliver could claim $5,800 depreciation in his first year.
Oliver’s numbers without a depreciation claim
Oliver’s numbers with a depreciation claim of $2,146
Without depreciation, Oliver had to pay $49 out of his own pocket each week. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, he significantly reduced that payment to $8 per week.
This means that Duo Tax was able to save Oliver a total of $2,146 in his first year of owning the investment property.
The great thing about his depreciation schedule is that it’s valid for up to 40 years! So, Oliver 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!