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.
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.
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