TV Block buyers could save millions

Yes – depreciation is a great tax deduction, [as detailed in this story] yielding an typical tax deduction of $12,000 per annum for the first 5 to 10 years on a new investment house, home unit or villa in the $750,000 range.
But there’s a sting in the tail! The deductions claimed are added to the capital gain on sale.
The ATO gives this example –
Karl and Louisa bought a residential rental property in November 2015 for a purchase price of $750,000 (1).
They incur costs of purchase, including stamp duty and legal fees of $30,000 (2).
After purchase they improved the property by constructing a fence for $6,000 (3).
Over the 5 years of ownership of the property, they claimed $25,000 (average $5,000 per year) in decline in value deductions and $35,000 (average $7,000 per year) in capital works deductions (4).
In November 2020 they sold the property for $900,000 (5). Their costs of sale, including legal fees, were $10,000 (6).
Their ‘raw’ capital gain is $150,000 ((5) – (1)), against which they take away costs of purchase of $30,000 (2) and costs of sale of $10,000 (6) reducing the capital gain to $110,000.
But they must add the depreciation deductions of $25,000 and $35,000 (4), which means the capital gain is now $170,000.
Of course, having owned the property for more than 1 year, the capital gain is halved to $85,000.
This is the link https://www.ato.gov.au/Individuals/Capital-gains-tax/Property-and-capital-gains-tax/CGT-when-selling-your-rental-property/