The following cost breakdown shows Evelyn’s cash position with and without depreciation in her first year of owning the property.
According to her Duo Tax depreciation schedule, Evelyn could claim $2,800 in depreciation in her first year.
Evelyn’s numbers without a depreciation claim
Evelyn’s numbers with a depreciation claim of $2,800
Without depreciation, Evelyn was only generating $82 of profit from the existing granny flat. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, she started generating $101 each week - which is $19 more than before her depreciation claim.
This means that Duo Tax saved Evelyn a total of $1,036 in her first year of owning the granny flat.
The great thing about her depreciation schedule is that it’s valid for up to 40 years! So, Evelyn 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!