Income but Negative Cash Flow- Beginner
Hello,
For the first time I worked with a CPA who specializes in real estate and was really excited since I was hoping to have more write offs this year however the opposite was true. I've had a rental for a year and most of the year I had negative cashflow (not anymore) but on my tax returns it showed that I made a few thousand dollars, which I didn't because most of the rent went straight the note of the home (which was more than the rent I was collecting). My expenses exceeded my revenue. The items that they wrote off did not cover my "income." Long story short, it showed that I made a decent amount last year when in actuality I did not; I was negative most of the year. I'm in CA so I had to bit the additional depreciation increase. So obviously it increased my net income, which I was taxed more on. That being said, how do people offset it since most need to pay the mortgage/note? I'm just really surprised. Any advice would be greatly appreciated!
Side note: I refi the loan so CF is not negative.
Jennie E.