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Updated about 5 years ago on . Most recent reply presented by

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David Chappell
  • Austin, TX
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Taxable Income higher than Cashflow?

David Chappell
  • Austin, TX
Posted

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

Most Popular Reply

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Natalie Kolodij
  • Tax Strategist| National Tax Educator| Accepting New Clients
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Natalie Kolodij
  • Tax Strategist| National Tax Educator| Accepting New Clients
ModeratorReplied

Welp keep in mind you're paying a full mortgage payment and only allowed to deduct the interest so you've also got a debt paydown benefit too. 

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Kolodij Tax & Consulting

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