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Insider Secrets to Financing Your Real Estate Investments
Paperback: 261 pages
Pub: McGraw-Hill
ISBN: 0071422579
Available at:Amazon
Taxable Income

                    Gross Scheduled Rent Income
                    Other Income  
                    TOTAL GROSS INCOME
                    VACANCY & CREDIT ALLOWANCE
                    GROSS OPERATING INCOME
                    Insurance (fire and liability)
                    Property Taxes  
                    Repairs and Maintenance
                    Supplies & Miscellaneous
                    TOTAL EXPENSES
                    NET OPERATING INCOME
                    Less Interest, First Mortgage
                     Less Interest, Second Mortgage
                    Less Depreciation, Real Property
                    Less Depreciation, Capital Additions
                    Plus Interest Earned  
                    TAXABLE INCOME
Automatic Recalculation 

Taxable income equals the property's Gross Scheduled Income, less Vacancy and Credit Allowance, operating expenses, mortgage interest and depreciation. If there is property-specific interest earned (for example, on an escrow account) that will increase the taxable income.