The following cost breakdown shows Steve’s cash position with and without depreciation in his first year of owning the warehouse.
According to his Duo Tax depreciation schedule, Steve could claim $37,400 depreciation in his first year.
Steve’s numbers without a depreciation claim
Steve’s numbers with a depreciation claim of $16,830
Without depreciation, Steve was only generating $96 of weekly profit from his warehouse investment. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, he started generating $420 each week - which is $324 more than before his depreciation claim.
This means that Duo Tax was able to save Steve a total of $16,830 in the first year of owning the warehouse.
The great thing about his depreciation schedule is that it’s valid for up to 40 years! So, Steve can continue saving money each year, as long as he continues to own the warehouse.
Our Duo Tax Rental Property Depreciation Calculator is free, so make sure to check it out!