Taxable Income higher than Cashflow?
Hi everyone, I am running the numbers on a potential property and Im making sure I am doing this correctly.
Here are the #s, if these look right I am paying $803 in taxes on a property that Cash flows $1,574??
| Gross Rental Income | $14,400 |
| - Operating Expenses | $5,391 |
| Net Operating Income | $9,009 |
| - Mortgage Interest Expense | $3,693 |
| - Depreciation Expense | $2,103 |
| Taxable Income | $3,213 |
| Taxes Owed (25% Tax Rate) | $803 |