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An example of an investor with two investment properties:
| Not claiming depreciation |
| Gross Wages |
$90,000 |
| Gross Rental Income |
$35,000 |
| Rental Loss |
$37,000 |
| Taxable Income |
$87,000 |
| Total Payable |
$22,850 |
|
| Claiming depreciation |
| Gross Wages |
$90,000 |
| Gross Rental Income |
$35,000 |
| Rental Loss |
$61,500 |
| Taxable Income |
$63,500 |
| Total Payable |
$14,400 |
|
By putting back the tax savings, for example the $700 as shown below, this could potentially save you thousands of dollars in interest.
| Loan Details |
| Loan Amount |
$500,000 |
| Interest Rate |
7.00% |
| Loan Term |
20.0 Years |
| Repayment Frequency |
Monthly |
|
| Repayment Details |
| Extra contribution per payment |
$700 |
| Extra contribution start after |
0.0 Years |
| . |
|
| . |
|
|
