|
|
An example of an investor with two investment properties:
| Not claiming depreciation |
Claiming depreciation |
|
Gross Wages
|
$ 90,000
|
Gross Wages
|
$ 90,000
|
|
Gross Rental Income
|
$ 35,000
|
Gross Rental Income
|
$ 35,000
|
|
Rental Loss
|
$ 37,000
|
Rental + Depreciation Loss
|
$ 61,500
|
|
Taxable Income
|
$ 87,000
|
Taxable Income
|
$ 63,500
|
|
Tax Payable
|
$ 22,850
|
Tax 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 Amount
|
$ 500,000
|
|
Interest Rate
|
7.00%
|
|
Loan Term
|
20.0 Years
|
|
Repayment Frequency
|
Monthly
|
|
Extra contribution per payment
|
$ 700.00
|
|
Extra contribution start after
|
0.0 Years
|
|
|
