Depreciation and Tax advantages of a non cash flowing property

[Debbie W.]

Will depreciation help minimize cost if SFR is break even or not cash flowing? I have 2 other rentals that cash flow. I have read everything and just can't seem to understand how the tax breaks apply. This home and 1 other are on Long Island in NY. The other is in FL.

Do the rentals affect the taxes I pay on my regular income? I don't work a job anymore. I retired and get a pension. I should probably find an accountant who can explain this to me lol.

Thanks in advance for anyone who tries to explain.

[Natalie Kolodij]

Originally posted by @Debbie W.:

Will depreciation help minimize cost if SFR is break even or not cash flowing? I have 2 other rentals that cash flow. I have read everything and just can't seem to understand how the tax breaks apply. This home and 1 other are on Long Island in NY. The other is in FL.

Do the rentals affect the taxes I pay on my regular income? I don't work a job anymore. I retired and get a pension. I should probably find an accountant who can explain this to me lol.

Thanks in advance for anyone who tries to explain.

Rental losses will always offset rental income. 

If your AGI is under $150k it can potentially offset your other forms of income as well. 

However- if this is a property you're looking to purchase- I would say never but a bad rental just for tax advantage.