Key points
New house purchased for $730,000 depreciation breakdown
New house depreciation breakdown
New house purchased for $730,000 | Without depreciation | With depreciation |
Annual rental income | $33,800 | $33,800 |
Annual property expenses | $40,000 | $40,000 |
Pre-tax cash flow (income less expenses) | -$6,200 | -$6,200 |
Depreciation claim | $0 | $15,500 |
Total taxation loss (pre-tax cash flow + depreciation) | $6,200 | $21,700 |
Tax refund (tax loss x tax rate of 37%) | $2,294 | $8,029 |
Annual costs (pre-tax cash flow + tax refund) | -$3,906 | $1,829 |
Weekly cost | -$75 per week | +$35 per week |
Difference of $110 per week |
Case studies and figures are based upon tax depreciation schedules completed by BMT Tax Depreciation and do not represent any particular person or investment property scenario. The information provided is a general guide and does not constitute financial, legal or taxation advice. All figures are supplied as examples and may not represent your personal circumstances.
You acknowledge and agree you must undertake your own analysis and obtain independent legal, financial and taxation advice before using, relying or acting on any information supplied on this website.
Neither BMT Tax Depreciation, nor its Directors, Shareholders or Advisors make any representation or warranty as to the accuracy or completeness of information found in these typical examples. Nor will they have any liability to you or any other party for any representations (expressed or implied) contained in, or any omissions from, that information.
The tax depreciation deductions in this case study have been calculated based on the diminishing value method of depreciation and are based upon a first full year of ownership.
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Claiming depreciation
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