Case study:
A house purchased for $300,000

The following scenario shows Michael’s cash position with and without a depreciation deduction of $7,500.

A ten year old house purchased for $300,000
Scenario without depreciation claim
Annual income ($310 x 52 weeks) $16,120
Annual expenses $20,090
Pre-tax cash flow (expenses less income) -$3,970
Total taxation loss -$3,970
Tax refund (tax loss x tax rate of 37%) $1,469
Annual costs of the investment property (pre-tax cash flow + tax refund) -$2,501
Weekly cost of the investment property -$48
Scenario with depreciation claim of $7,500
Annual income ($310 x 52 weeks $16,120
Annual expenses $20,090
Pre-tax cash flow (expenses less income) -$3,970
Total taxation loss (pre-tax cash flow + depreciation) -$11,470
Tax refund (tax loss x tax rate of 37%) $4,244
Annual cash flow of the investment property (pre-tax cash flow + tax refund) $274
Weekly cash flow of the investment property $5
Difference of $53 per week

Without depreciation, Michael was paying out $48 per week. By taking advantage of tax legislation and making a depreciation claim, Michael was able to turn his loss into an income of $5 a week. BMT saved Michael a total of $2,775 in just the first year.

Assumptions and disclaimer

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.

Related case studies:
1970's three bedroom house purchased for $500,000

A new three bedroom house purchased for $600,000

A new house purchased for $800,000

Co-ownership example with and without a split report

View more

Find out how much you could be claiming each year

Estimate your likely deductions using the free BMT Tax Depreciation Calculator, alternatively complete this form and one of our staff members will be in contact to provide a customised tax depreciation estimate for your property.

As you can see, property depreciation can make a significant difference to a property investor’s cash flow each financial year.

How do I organise a schedule?

Engaging BMT Tax Depreciation to complete a tax depreciation schedule for your investment property couldn’t be easier:
Get a Quote

Request a quote for your tax depreciation schedule.

Property details

We’ll collect property details, then contact your Property Manager or Tenant to arrange access to complete a property inspection.

Claim deductions

Your schedule will be available within 5 – 7 days of all information being gathered. BMT can even forward your schedule to your Accountant directly, saving you time.

It’s that simple. A depreciation schedule could save you thousands each financial year.
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