Question about depreciation and Prop Analysis Worksheet

[Steve Maye]

I am new. I have been working with the Property Analysis Worksheet and have a question about depreciation. Depreciation is the amount we can claim as a loss each year against our profit. If the property really does not lose value or is not damaged is it really a loss? Does the government somewhere come back to claim all these amounts that have been claimed as depreciation on your taxes?

27 CASH FLOW BEFORE TAXES....$4,392

28 Add Back: Principal Payments.....$3,022 Principal Paid on Loan

29 - Depreciation.................$(7,273) Tax Depreciation on Building

30 TAXABLE NET INCOME (LOSS)........$141