Positive on Tax Results, too bad?

[Yogesh Bhadane]

Analyzing my first property, so thought I would share this scenario;

Scenario 1- After depreciation and PITI the tax results comes out to be higher. Let's say positive $10K.

However the net profit comes out negative let’s say -$100

Scenario 2- Exactly the opposite of Scenario 1.

I prefer to have higher cash flow and negative tax results so I can pocket some cash and bring my tax to zero.

Wondering any investors especially in CA or NY have come across this situation?