Case study:
An apartment purchased for $700,000
The following scenario shows Rachel’s cash flow both with and without a depreciation claim.
Scenario without depreciation claim | |
Annual income ($600 x 52 weeks) | $31,200 |
Annual expenses | $46,396 |
Pre-tax cash flow (expenses less income) | -$15,196 |
Total taxation loss | -$15,196 |
Tax refund (tax loss x tax rate of 37%) | $5,623 |
Annual costs of the investment property (pre-tax cash flow + tax refund) | -$9,573 |
Weekly cost of the investment property | -$184 |
Scenario with depreciation claim of $14,488 | |
Annual income ($600 x 52 weeks) | $31,200 |
Annual expenses | $46,396 |
Pre-tax cash flow (expenses less income) | -$15,196 |
Total taxation loss (pre-tax cash flow + depreciation) | -$29,684 |
Tax refund (tax loss x tax rate of 37%) | $10,983 |
Annual cash flow of the investment property (pre-tax cash flow + tax refund) | -$4,213 |
Weekly cash flow of the investment property | -$81 |
Before claiming depreciation, Rachel would experience a loss of $184 per week for the first year of ownership for her property. Simply by claiming depreciation, Rachel was able to turn her cash flow into a more positive one, and reduce her loss to just $81 per week. In total, BMT Tax Depreciation saved Rachel $5,360 in the first full financial year.
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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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.
Find out how much you could be claiming each year
How do I organise a schedule?
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1
Get a Quote Request a quote for your tax depreciation schedule.
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2
Property details We’ll collect property details, then contact your Property Manager or Tenant to arrange access to complete a property inspection.
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3
Claim deductions Your customised depreciation schedule is delivered to you and your nominated accountant.
Find out how much you could be claiming each year
How do I organise a schedule?
Request a quote for your tax depreciation schedule.
We’ll collect property details, then contact your Property Manager or Tenant to arrange access to complete a property inspection.
Your customised depreciation schedule is delivered to you and your nominated accountant.