Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

Is there Tax Involved with Cash Flow?

14 Aug 2026 · 1 min

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Monthly rental cash flow like $5,000 to $10,000 is technically taxable income, but depreciation and write-offs usually exceed it, offsetting the tax hit. You only owe taxes on cash flow when it gets exceptionally high and surpasses your deductions.

Let's say you have cash flow with your properties of $5,000 or $10,000 a month. Is that taxed? And is that something that you would want to take a portion of that to put into another deal?
Usually not. I mean, technically the answer is yes, but your depreciation is almost always in every instance greater than your cash flow unless your cash flow gets insane, in which case you have the problem of making too much money, which is not a bad problem to have. So generally speaking, it is directly added to your income. However, you get write-offs that are usually in excess of the income.