Estimate rental property cash flow, depreciation, and taxable rental profit in one place. This calculator is designed for immigrant investors and H1B visa holders evaluating U.S. rental property investments.
Use the Rental Income Calculator
Enter your numbers below. The estimate updates automatically as you change inputs.
What This Rental Calculator Estimates
This tool compares real annual cash flow with taxable rental profit. Rental properties can generate positive monthly cash flow while still producing a taxable loss because depreciation and mortgage interest are treated differently for tax purposes.
Rental Income Example
For example, a property earning $2,500 per month in rent with $900 in monthly expenses may still show a taxable loss after depreciation and mortgage interest are applied, even if the property generates positive cash flow.
Rental Property Depreciation Example
If a rental property is purchased for $400,000 and the land value is estimated at $80,000, the depreciable building value would be $320,000. Residential rental buildings are typically depreciated over 27.5 years, which would result in approximately $11,636 of annual depreciation.
Frequently Asked Questions
Can a rental property have positive cash flow but still reduce taxes?
Yes. Depreciation and mortgage interest can create a taxable loss even when the property produces positive cash flow.
Why is mortgage principal not deductible?
Mortgage principal builds equity in the property, but only mortgage interest is generally treated as a deductible rental expense.
Can H1B visa holders own rental property in the U.S.?
Yes. Many H1B visa holders invest in rental property in the United States, although mortgage qualification and visa compliance considerations may apply.
Related Guides
Can H1B Visa Holders Buy Rental Property in the US?
Is Rental Income Allowed on H1B Visa?
The Immigrant Property Buying Playbook (2026 Edition)
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Disclaimer: This calculator is for educational purposes only. Always confirm calculations and tax implications with a qualified CPA or tax professional before making financial decisions.