How much Depreciation?

[Kyle Scholnick]

let's say I have rental property income of $15k per year, expenses of $4k and depreciation of $5000

I am in a 40% tax bracket 

When I write off my expenses And depreciation on my taxes, am I writing off a total of $9k (expenses plus depreciation ) or just 40% of those which is only $3600?

[Wayne Brooks]

Your actual cash income is $11,000.  With the depreciation deduction of $5,000, you are only being taxed on $6,000.  So, you saved the taxes on the $5000 depreciation (40% would be $2,000 in savings).  You Will pay back the tax on that depreciation deduction when/if you sell, at a max rate of 25% (currently).