Investing in Oklahoma City real estate Part 4-Depreciation and taxes

The good news about buying a positive cash flow property in Oklahoma City is that often the depreciation schedule is equal to or greater than the cash flow off setting the taxes on income. This video will explain that and what taxes you would pay at closing if you wanted to cash out of the rental property. The next video will go into how to defer those taxes.

Category:

Education

[joepryor1247]

That is what I am saying. Depreciation is not positive cash flow. It is the ability to offset gains that you may have from the positive cash flow. Sorry if that wasn't clear. Thanks for viewing and commenting.

[Harpler]

So isn't a misnomer to say that depreciation is actually positive cash flow? Using your example, $250 net plus $257 is not $507 positive cash flow. Do you mean that I can take the $7 left over and offset active income? Thanks