Profitability and Depreciation

[Peter Lee]

Hello,

I am confused about the profitability from tax perspective and from business perspective.

I have  a condo for rent. Annually the expenses is about half of the total rent, so I am profitable from the business side. While the depreciation is more than half of the total rent, when filing tax, the total ends up as a loss. IRS typically require a business to be profitable, reporting net income, 3 out of 5 years. Would rental follow the same rule?

New to rental. Curious how you guys handle this situation? Do you guys always report profits within a few years?

Thanks,

Peter