Original capital works
Circa 2020 capital works cost recorded at $2,221,626 before affected Division 40 items were separated.
Tax depreciation case study
Yarralumla ACT investment property: $2,057,775 in deductions identified
A high-value ACT residential investment property produced one of the strongest depreciation outcomes in the sample set, with BWK Group identifying a substantial capital works base and long-term deductions.
Total deductions identified
$2,057,775
First full-year claim
$56,301
First-year pro-rata claim
$24,810
Adjusted Division 43 base
$2,195,305
Property snapshot
Large contemporary residential investment property
The property presents as a substantial contemporary residence with a formal street frontage, upper-level balcony elements, rendered external walls, landscaped entry paths and established planting around the front boundary.
The report records the property as completed circa May 2020 and available for rent from 17 January 2022. The opening year was calculated on a 165-day pro-rata basis.
Plain-English value summary
BWK Group identified $2,057,775 in total depreciation deductions for this investment property. The opening pro-rata claim was $24,810, then increased to $56,301 in the first full financial year. The result was driven by a large adjusted Division 43 capital works base.
Report detail extracted
What made this report unique
These details show the report-specific review behind the headline figures, including the capital works basis, adjustment items and property history considered in the schedule.
Adjusted Division 43 base
$2,195,305 after removing $26,321 of affected Division 40 items from the building write-off basis.
Occupancy context
Preoccupied property, so second-hand residential plant rules were considered in the report treatment.
Why the claim is substantial
The report identified a large modern capital works base, which created strong recurring Division 43 deductions.
Why the first year differed
The first claim year was based on 165 rental-available days, so the opening claim was pro-rated.
Why BWK Group
The case shows the benefit of separating affected plant items from the structural capital works base before issuing the forecast.
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Guide only. These figures are examples from a completed report and are not tax advice or a prediction of your result.
Privacy note
This case study is based on a completed BWK Group depreciation report. Client names, exact street addresses and identifying details have been removed. Figures are drawn from the completed report and rounded only where stated.
Guide only
This case study is provided as a guide only and is not tax, financial or investment advice. Depreciation outcomes vary by property, ownership structure, construction history, rental availability, legislation and information supplied. Review any figures with your accountant.