Lines of credit and taxes

[Nate Moross]

If I use lines of credit for a down payment on a apartment complex do I have to pay taxes on my cashflow before I pay back the lines of credit or after?

[Basit Siddiqi]

Cash-flow is not reported on your tax return.
Taxable rental income is.

Taxable rental income normally equals Cash flow + principal paydown - depreciation.

Interest expense on a line of credit used as a down-payment may potentially be an additional expense for you, speak with your CPA.