Rental Property Depreciation Calculator South Africa
Here’s a basic table estimating the depreciation for common assets in a rental property:
| Asset | Estimated Lifespan (Years) | Depreciation Rate (%) |
|---|---|---|
| Building Structure | 50 | 2 |
| Fixtures & Fittings | 10 | 10 |
| Carpets & Flooring | 5 | 20 |
| Appliances | 5 | 20 |
| Furniture | 5 | 20 |
| Land (Not depreciable) | N/A | N/A |
Let’s assume the initial cost of the building structure is R1,000,000, fixtures & fittings are R100,000, carpets & flooring are R50,000, appliances are R30,000, and furniture is R20,000.
Here’s how you can calculate depreciation for each asset over 5 years:
- Building Structure:
- Year 1: R1,000,000 * 2% = R20,000
- Year 2: R1,000,000 * 2% = R20,000
- Year 3: R1,000,000 * 2% = R20,000
- Year 4: R1,000,000 * 2% = R20,000
- Year 5: R1,000,000 * 2% = R20,000
- Fixtures & Fittings:
- Year 1: R100,000 * 10% = R10,000
- Year 2: R100,000 * 10% = R10,000
- Year 3: R100,000 * 10% = R10,000
- Year 4: R100,000 * 10% = R10,000
- Year 5: R100,000 * 10% = R10,000
- Carpets & Flooring:
- Year 1: R50,000 * 20% = R10,000
- Year 2: R50,000 * 20% = R10,000
- Year 3: R50,000 * 20% = R10,000
- Year 4: R50,000 * 20% = R10,000
- Year 5: R50,000 * 20% = R10,000
- Appliances:
- Year 1: R30,000 * 20% = R6,000
- Year 2: R30,000 * 20% = R6,000
- Year 3: R30,000 * 20% = R6,000
- Year 4: R30,000 * 20% = R6,000
- Year 5: R30,000 * 20% = R6,000
- Furniture:
- Year 1: R20,000 * 20% = R4,000
- Year 2: R20,000 * 20% = R4,000
- Year 3: R20,000 * 20% = R4,000
- Year 4: R20,000 * 20% = R4,000
- Year 5: R20,000 * 20% = R4,000
After 5 years, you would have depreciated the assets by the following amounts:
- Building Structure: R20,000 * 5 = R100,000
- Fixtures & Fittings: R10,000 * 5 = R50,000
- Carpets & Flooring: R10,000 * 5 = R50,000
- Appliances: R6,000 * 5 = R30,000
- Furniture: R4,000 * 5 = R20,000
Total depreciation over 5 years: R250,000
Remember, this is a simplified example. In practice, tax laws and regulations may vary, and it’s advisable to consult with a tax professional for accurate calculations.