Sean W. asked
If a rental property generates less income than its depreciation, such as a business gross income of 5k with a depreciation of 10k, does this mean the business is at a 5k loss for the year? Can the owner take a distribution tax-free from the business account in the future if the business makes more money? In other words, can the owner take 10k out as a distribution as opposed to income? When the building is sold, the depreciation gets added back for taxes, but if the owner never took this money because the rental never made enough, why is the owner responsible to pay on it?
April 26th, 2023
Mark P. answered
When a rental property generates less income than its depreciation, it results in a passive loss, wh...
April 26th, 2023
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