The following cost breakdown shows Noah’s cash position with and without depreciation in his second year of owning the office space.
According to his Duo Tax depreciation schedule, Noah could claim $15,100 depreciation in his first year.
Noah’s numbers without a depreciation claim
Noah’s numbers with a depreciation claim of $15,100
Without depreciation, Noah was only generating $55 of profit from his office space investment. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, he started generating $163 each week - which is $107 more than before his depreciation claim.
This means that Duo Tax was able to save Noah a total of $5,587 in his second year of owning the office space.
The great thing about his depreciation schedule is that it’s valid for up to 40 years! So, Noah can continue saving money each year, as long as he continues to own the office space.
Our Duo Tax Rental Property Depreciation Calculator is free, so make sure to check it out!