The following cost breakdown shows Emily’s cash position with and without depreciation in her first year of turning the apartment into an investment property.
According to her Duo Tax depreciation schedule, Emily could claim $4,800 depreciation in her first year.
Emily’s numbers without a depreciation claim
Emily’s numbers with a depreciation claim of $4,800
Without depreciation, Emily had to pay $48 out of her own pocket each week. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, Emily reduced that weekly payment by $13 per week.
This means that Duo Tax was able to save Emily a total of $1,776 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, Emily 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!