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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 |
. |
|
. |
|
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