Last month we looked at some depreciation deductions for a typical unit in Sydney. We chose a rather average unit and this month we’ll be doing the same with a house in Bonny Hills, which is near Port Macquarie. It’s easy to pick an eight million dollar unit and talk about how fantastic the deductions are, but most residential properties we work on are worth well under a million dollars and case studies of these types of properties are much more useful to the average investor.
The property in question is a fairly standard sized four bedroom home at around 180 square metres.
It was built in late 2003 and on top of the four bedrooms has two bathrooms, solar panels, a large garage and an outdoor undercover entertaining area.
The great news for the client was that we found a total depreciation figure of $174,056 which consists of $21,786 worth of division 40 assets (plant & equipment) and $152,270 of division 43 assets.
In the first full financial year, the depreciation total using the diminishing value method was $10,052 and $7,522 using the prime cost method.
A nice looking property as you can see, but certainly nothing particularly out of the ordinary. It just goes to show that you don’t need a brand new house or an expensive unit to benefit from some very solid depreciation deductions.