\nPatrick purchased an investment property for $495,000 one year ago. He receives a rental income of $455 per week with a total income of $23,660 per annum. Expenses for Patrick\u2019s property including interest, rates, management fees and repairs and maintenance costs totalled to $33,913.
\nPrior to claiming depreciation, Patrick is experiencing a loss from his property. Patrick contacted a specialist Quantity Surveyor and found out that he would be able to claim $11,590 in depreciation deductions in the first year. The below table shows Patrick\u2019s cash flow with and without a depreciation claim:
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![\"depreciation\"](\"https:\/\/i0.wp.com\/realestatetalk.com.au.s3.amazonaws.com\/wp-content\/uploads\/2015\/03\/2014_TAV1-API_Purchase-With-or-without-depreciation-1024x614.jpg?resize=700%2C419\")
\nWithout property depreciation, Patrick would experience a loss of $124 per week during the first year of owning the property. By claiming depreciation, the weekly cost is reduced to $42, saving Patrick $82 per week or $4,264 in the first year of ownership.
\nEnsuring that each depreciation claim is maximised on any building requires a combination of construction costing skills and thorough knowledge of current tax depreciation legislation. For this reason, it is recommended that investment property owners consult a specialist Quantity Surveyor to prepare a depreciation schedule prior to lodging their tax return. The cost to arrange a depreciation schedule is also 100% tax deductible.
\nTo learn more about property depreciation, click here<\/a> to visit the BMT Tax Depreciation tax depreciation overview page on their website, or speak with one of their expert staff by phoning 1300 728 726.
\nPhoto credit: Aussie money notes<\/a> via photopin<\/a> (license)<\/a>
\n <\/p>\n","protected":false},"excerpt":{"rendered":"
First time property investors who have never claimed depreciation before often ask just how much of a difference depreciation deductions will make to their annual cash flow. Depreciation can be quite a complex and daunting topic, but seeing a real world example really helps to…<\/p>\n","protected":false},"author":176692471,"featured_media":3948,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,25],"tags":[70],"class_list":["post-3937","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bmt","category-sponsored-channels","tag-featured"],"yoast_head":"\n