- Jeremy SheppardParticipant@jeremydsrdataJoin Date: 2015Post Count: 0
There’s no such thing as depreciation “benefits”. Depreciation is the opposite of appreciation. Properties with the highest rates of depreciation are fighting against capital growth.
If you can claim $10k in depreciation for a financial year and you’re paying 40c in the dollar in tax, then you’d pay $4k less tax. Nothing wrong with doing that, claim every cent you can. But don’t go chasing these types of properties because you’re not better off by $4k, you’re net position has actually deteriorated by $6k. You’re worse off by $6k compared to owning a property that didn’t depreciate at all.
More detail is available from the full article, “Avoid Properties with high depreciation” in the Expert Busting series on the Select Residential Property website.
- This topic was modified 2 months ago by Benny. Reason: remove link