|
|
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
|
| |
