yes but in the example I gave you ..you've claimed back $1500 in...

  1. 265 Posts.
    yes but in the example I gave you ..
    you've claimed back $1500 in tax savings for your $5000 carpets but you will now need to pay $15000 for the carpet .. so you're down $13,500 in dollar terms.

    So ..the depreciation tax saving of $1500 which started at 30%/annum of the original purchase price, now equates to 10% of the replacenment cost... so what started off as a 30c in the dollar benefit over the first 5 years , has become a meagre 10c in the dollar benefit.
 
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