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|
|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.
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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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