Tax Help Please - Posted by Skip

Posted by Skip on April 06, 2006 at 24:52:01:

I just computed the taxes for one of my rental properties and was surprised to see a profit. I thought that rental properties normally show a loss. This property only cashflows about $150 a month, so I thought I would show a loss on paper, which I could then deduct from my ordinary income. Here are the numbers:

Total Income 15,437

Total Expenses 12,961
(expenses $9,795)
(depreciation $3,166)

Profit 2,476

Am I doing something wrong or could that be right?