Calculating taxable income

[John Stanley]

I'd like a sanity check on my math. Am I estimating the taxable amount correctly? I'm in Germany where we can depreciate property 2% per year. This is a bit disappointing because the taxes will eat up most of the profit which I plan to save for capital expenses in the future.

Purchase price € 1,000,000
2% of price (depreciation) € 20,000
principal paid p.a. € 27,000
interest paid p.a. € 16,000
rental income € 60,000
costs € 10,000

taxable amount € 14,000 (=rental income - depreciation - interest - costs)
actual profit € 7,000 (=rental income - principal - interest - costs)