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Updated about 9 years ago,
Taxable income. How do rentals help taxes?
First off, I realize nobody here is going to give CPA services for free. I am attempting get an idea of my taxes and found I am positive on my rental properties. So I am wondering how real estate produces a negative taxable income or if i am missing something. Here are the estimate nnumbers.
Income: 15900
Interest: 5500
Property tax: 3200
Insurance 1000
Depreciation: 4000
Other expenses: 0
Total: 13700
taxable: 2200
Understandably, other years will have maintenance and other expenses, however not 2700/years worth. How would cashflow producing real estate ever decrease taxable income?