These detailed records, (many copies of which had to be scanned & emailed to them), saved us from any 'taxable consequences'. 

Depreciation allows you to spread out the expense of assets over several years, reducing taxable income each year.If you need further clarification, financing for your projects, or just have more questions please feel free to reach out to me directly.

On 4 it is $12,000/year.  3.3% depreciation is similar numbers - usually almost eliminating all your taxable income from financed properties after repairs and maintenance is factored in. 

Based on only the facts and circumstances listed above and if it meets the 2 out of 5 year test, it will be considered under the $250,000 income threshold and non-taxable.

The 401k I used to have said if I default it didn't negatively affect my credit, but that it would become a taxable event like a withdrawal (come tax season) and I would have to pay penalties for the amount I had remaining. 

If the free rent were considered a gift or was taxable that could be a complication.2.

The property taxes are being reassessed yearly and probably you will only get the new taxable value 12 to 18 months after the purchase. 

We deal in low income properties, so our criteria is that rent cannot be more than 50% of income, but if the income source is non-taxable we increase it to 59%. 

The real estate laws and taxable benefits in Germany are very different from the US and I want to establish a portfolio before trying to break to the barriers Europe has in place.I listen to BP podcasts and take notes on tips and techniques, but being so far away from a potential market in the US, makes it seem a bit more difficult.

To be "lendable" as you say is more about cash flow than actual taxable income.