No. Depreciation is generally a tax deduction concept, not rental cash income.
What is Depreciation (Investment Property)?
Quick definition
Depreciation is a non-cash deduction that can reduce taxable rental income, but it does not increase rent cash received.
InvestingTax & payGeneral
Overview
For residential rentals, depreciation outcomes are highly property-specific and depend on construction dates, asset eligibility, records, and current tax rules.
A calculator estimate is general guidance only. A quantity surveyor depreciation schedule is usually more reliable than generic assumptions.
In cash-flow analysis, depreciation can improve estimated tax outcomes without changing rent collected or direct property cash costs.
Why it matters
- Can materially change estimated tax impact in negative or positive gearing scenarios.
- May improve after-tax cash flow estimates while pre-tax cash flow is unchanged.
- Overstating depreciation can mislead planning, so conservative assumptions are safer.