Depreciation for houses

Amy saved $68 dollars per week on her three bedroom investment property using depreciation claims. Amy’s property was ten years old and a depreciation claim enabled her to improve the cash flow position on her investment property.


Three bedroom house purchased for $610,000 just over a year ago with a rental income of $25,740

Amy purchased a nine year old three bedroom house for $610,000 just over one year ago. Prior to making her depreciation claim Amy’s investment property was earning a rental income of $495 per week with a total income of $25,740 per annum, while her yearly expenses totalled $41,028. Towards the end of her first year owning the property Amy’s annual after tax outlay amounted to $9,631 or $185 per week.

Amy contacted BMT Tax Depreciation who completed a thorough site inspection and provided a detailed tax depreciation schedule showing the deductions available for her property for the next forty years, including $9,585 in the first year. The following table provides a summary of Amy’s scenario for the first full year, both before and after depreciation was claimed.

Three bedroom house purchased for $610,000 just over a year ago with a rental income of $25,740
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