high rise apartmentDelaying your decision to obtain a depreciation report can cost you tens of thousands of dollars worth of depreciation entitlements. We have set out below a case study of depreciation entitlements claimable by a first time investor examining what a delay of 4 years could do to an investor’s cash flow.

In December 2016, Paul and Samantha are told of the cost benefits of engaging Deppro to produce a depreciation report. As is evident from the table below, Paul and Samantha’s delay means they missed out on almost $60,000 worth of depreciation deductions from previous financial years.

 

Financial Year Depreciation on Plant Capital Allowances Yearly Total
    Low Value Pooling    
23/3/2012 – 2012 2,674 801 2,446 5,921
2012 – 2013 4,101 1302 8,952 14,355
2013 – 2014 3,454 814 8,952 13,220
2014 – 2015 2,923 508 8,952 12,384
2015 – 2016 2,487 847 8,952 12,286
2016 – 2017 2,127 0 8,952 11,079
2017 – 2018 1,828 0 8,952 10,780
2018 – 2019 1,581 0 8,952 10,533
2019 – 2020 1,374 0 8,952 10,326
2020 – 2021 1,201 0 8,952 10,153

 

Obtaining a depreciation report at or around the time of settlement of a property can put thousands of dollars back into an investors pocket. This money can be used to either pay down existing debts on investments or drive the investor to re-invest and grow their portfolio.

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Dorian Traill is the current Director of Grand Capital Finance Group and Fountain Property Group. He specialize in home loans for people as well as helping them build wealth through quality investment properties that ultimately lead to long term financial freedom.