Property management expenses are tax deductible just like all your other rental expenses.

, I mean, even at 35% tax deduction, you'll net 20k in one month.

However, by changing investment income to ordinary income, on would now owe social security and Medicare tax, at the combined rate of 15.3% (both sides), less deduction from income of one half of the tax, so effective rate of 12 - 13 %.  

Suppose one purchased a 4 plex for $400k and took the standard depreciation for 27.5 years deducting $300k for tax purposes.

I talk in terms of Gross Salary, of course with write-offs and deductions we claim/make less. 

In most cases there is quite a difference.As mentioned before, the penalties and taxes you have to pay at the end of the year are not deductible. 

It sounds like you get overtime pay, and you are trying to figure out how much your are actually receiving if you are losing RE deductions?? 

It creates potential for two-layer taxation and creates tax deductibility issues for losses. 

Further, both of those leases explicitly state that the Landlord can deduct late charges from the security deposit.I feel confident in saying that if you used either of these lease forms, you are in the right unless your late fees are deemed unreasonable.  

Property is 60% debt financed60% of the income is initially looked at by the taxYou apply a $1000 base exemption, then 60% of all the normal deductions like note interest, depreciation, property taxes, etc.