$
$
$
$
$
$
$
$
$
$
Net Cash Flow
$14,790
$14,790
Net Cash Flow
Income Tax
$1,710
NIIT
$0
Depreciation
$8,727
Summary
On $36,000 rental income with $19,500 in expenses and $8,727 depreciation, your net cash flow is $14,790.
Depreciation of $8,727 per year is calculated over 27.5 years on the building value of $240,000. This non-cash deduction reduces your taxable rental income.
The 3.8% Net Investment Income Tax (NIIT) applies to rental income when your MAGI exceeds $200,000 (single) or $250,000 (married filing jointly).
Income Tax
Depreciation Savings: $8,727
Cash Flow Journey
7 rows
| Step | Amount |
|---|---|
| Rental Income | $36,000 |
| Total Expenses | -$19,500 |
| Depreciation | -$8,727 |
| Net Rental Income | $7,773 |
| Income Tax | -$1,710 |
| NIIT | -$0 |
| Net Cash Flow | $14,790 |
Estimate based on federal taxes only. Depreciation uses straight-line method over 27.5 years. Does not account for passive activity limitations, state taxes, or cost segregation studies. Not tax advice.