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Case Study – Second Hand House (Built After 1987)

Client Name and Unit Number have been altered for privacy.

 

Marie came to Washington Brown looking to maximise her tax depreciation deductions, having purchased a second-hand investment property in 2018.

The house was originally built in 2000 and was purchased for $1,200,000 in 2018.

The two storey house consisted of 4 bedrooms, 2 bathrooms and a double garage, with a total internal area of 304sqm.

As Marie purchased the house after May 9th, 2017 and the property was not brand new, she was not able to claim deductions for the fixtures/fittings (Plant & Equipment / DIV 40).

Marie’s report from Washington Brown allowed her to claim the yearly deductions displayed below. The first year figures are specific to Marie’s settlement date in mid-August (slightly less than full financial years’ ownership).

By providing the Washington Brown depreciation schedule files to her accountant, Marie was able to claim over $8000 in her 2019/2020 tax return. In addition, she was also able to amend her 2018/2019 tax return to claim an extra $7,396. This gave her a total deduction of over $15,000.

Note: Please scroll across on mobile to view full deductions.

Financial Year Capital Works Deductions Plant & Equipment Low Value Pool Assets Amount Claimable
2018 / 2019 $7,396 $0 $0 $7,396
2019 / 2020 $8,436 $0 $0 $8,436
2020 / 2021 $8,436 $0 $0 $8,436
2021 / 2022 $8,436 $0 $0 $8,436
2022 / 2023 $8,436 $0 $0 $8,436

To view the full depreciation schedule, including an individual asset break up and Prime Cost deductions, you can download a copy here.

If you would like to get your own depreciation schedule, or find out how much you could claim, get a quote here.