4 Bedroom House Built in 2009
A Case Study of savings from our expertly prepared Depreciation Schedule.
The facts, and figures
Eve purchased this existing four-bedroom house for $490,000 in Jan 2020.
No renovations have been completed by Eve or previous owner. Eve is receiving $500 per week with a total rental income of $26,000 per annum.
Without a tax depreciation schedule, Eve’s tax deductible expenses for the 2021 financial year totalled $33,776.
Eve’s tax bracket is 37%.
When the tax depreciation schedule was included, the first full financial year calculations gave Eve an additional $2,399. Weekly cash flow back to Eve is $46.13.
The outcome
After speaking with her Accountant about the importance of a depreciation schedule, Eve contacted Capital Claims Tax Depreciation. This schedule outlined that Eve was entitled to a depreciation deduction of $5,785 in the first full financial year and $28,925 across the first five financial years of owning for her property. Over the life of the report $167,765.
Also, Eve’s property falls under the current legislation where a value is assigned for existing plant and equipment assets – Div 40. This may help reduce Capital Gains Tax when the property is sold. If Eve sells her property property in 5 years, she is entitled to claim $22,073 to offset against her Capital Gains Tax liability.
Project Data
Client name:
Eve
Asset:
Four Bedroom House
Purchase Price:
$490,000
Year Purchased:
Jan 2020
First Year Claim:
$5,785
Claimed over 5yrs:
$28,925
Claimed in total:
$167,765
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