Delaying 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.