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Tax Depreciation Examples

House Purchased Post 9 May 2017 Depreciation Example 1
Location: Wellington Point QLD 4160
Property Type: Single level, 4 bed, 2 bath, dwelling with double lock up garage
Purchase Price: $615,000
Settlement Date: January 2018
Construction Date: October 2000
Total depreciation calculated for the 1st full year: $4,303
Total depreciation calculated over a 5 year period: $18,695
Total depreciation calculated over a 10 year period: $38,788
Total depreciation calculated over a 40 year period: $96,889

NOTE: Purchased post 9 May 2017 unable to claim depreciation on existing plant & equipment items at time of purchase under the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 Chapter 2 – Limiting deductions for plant and equipment in residential property. If new plant and equipment items are purchased and installed by the owner, they are able to claim depreciation on those plant & equipment items providing they are new and only used for income generating purposes.