Realizing Your Cash Flow

[Alexa Martinelli]

Hey guys, I'm still in my "learning about real estate" stage. I just got Amanda Han's book on tax deductions. My question is, how do investors realize that $200/mo cash flow from a property? Obviously it would be going into the LLC bank account, but I'm wondering in terms of the correct tax way to do it. Do you just take the money out month by month and pay taxes on it at the end of the year? And if you had a big portfolio with a bunch of depreciation, travel receipts, etc how would you realize that? Would your tax return the next year give you like 38% back (assuming a 38% bracket)?