The following cost breakdown shows Amelia’s cash position with and without depreciation in her first year of owning the property.
According to her Duo Tax depreciation schedule, Amelia could claim $20,300 depreciation in her first year.
Amelia’s numbers without a depreciation claim
Amelia’s numbers with a depreciation claim of $7,511
Without depreciation, Amelia had to pay $95 out of her own pocket each week. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, she went from covering the loss to actually generating $50 each week.
This means that Duo Tax was able to save Amelia a total of $7,511 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, Amelia 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!