Depreciation for apartments

Margaret claimed $9,938 in depreciation deductions in the first year of owning her two bedroom apartment. Find out how she did it. 

Two bedroom unit purchased for $528,000 with a rental income of $24,440

The following scenario shows how one property investor’s cash flow was improved by claiming depreciation.

Margaret purchased a two bedroom apartment for $528,000 one year ago. The property was rented for $470 per week with a total income of $24,440 per annum. Expenses for the property including interest, rates and management fees totalled to $37,935.

After calling BMT Tax Depreciation, Margaret found that she would be able to claim $9,938 in depreciation deductions.

The following scenario shows Margaret’s cash flow with and without depreciation a depreciation claim.

Two bedroom unit purchased for $528,000 with a rental income of $24,440

Before claiming depreciation, Margaret would experience a loss of $164 per week for the first year of ownership for her property. Simply by claiming depreciation, Margaret was able to turn her cash flow position into a more positive one and reduce her loss to just $93 per week. In total BMT Tax Depreciation were able to save this investor $3,692 in just one year.

Return to Investor case studies