Taxable Income Calculator — Annie Scott Realty Group
Annie Scott Realty Group
Tax Planning

Taxable Income

Model annual taxable income with integrated NOI underwriting, loan-interest deduction, and depreciation shields.

Why do real estate investors use the Taxable Income calculation?

Because the income subject to tax is rarely simply your Net Operating Income (NOI).

This calculation accounts for non-cash paper deductions, interest, and depreciation that can significantly reduce annual tax liability. By forecasting this figure, investors gain a realistic view of their effective tax burden during the holding period, which is essential for determining true after-tax cash flow and overall investment yield.

Calculator · Taxable Income

Tax exposure inputs

NOI is calculated internally. Loan amount is calculated from purchase price minus downpayment.

Calculator · Taxable Income

Tax exposure inputs

NOI is calculated internally. Loan amount is calculated from purchase price minus downpayment.

Property Type
Potential Rent Income
$
Vacancy & Credit Loss
%
%
Other Income
$
$
$
$
$
Operating Expenses
$
$
$
$
$
$
$
$
Loan Inputs
$
$
Loan Amount is calculated from Purchase Price minus Downpayment.$0
%
Enter payments completed before the tax year. Example: 12 = Year 2 mortgage interest.
Years
Tax Basis Inputs
$
$
$
$
$
$
$
$
Years
⚠ Required fields are missing.
Results · Live

Taxable Income

NOI minus annualized mortgage interest and annual depreciation.

Awaiting your figures

Complete all sections, then calculate.

Annual Taxable Income
$0
— of NOI · —
NOI → Mortgage Interest → Annual Depreciation → Taxable Income
Net Operating Income
—
Loan Amount
—
Current Loan Balance
—
Annual Mortgage Interest
—
Annual Depreciation
—
Taxable Income
—
Property Type—
Net Operating Income—
Loan Amount—
Current Loan Balance—
Annual Mortgage Interest—
Closing Costs—
Total Cost Basis—
Depreciable Basis—
Annual Depreciation—
Taxable Income—
—

Taxable Income Example & Formula

Step-by-step NOI to taxable income bridge using the provided dataset.

Taxable Income = NOI − Annual Mortgage Interest − Annual Depreciation
Loan Amount = Purchase Price − Downpayment Current Loan Balance = Loan Amount × [((1 + i)^N − (1 + i)^n) / ((1 + i)^N − 1)] Mortgage Interest (period) = Current Loan Balance × (Annual Interest Rate ÷ Payments Per Year) For annual taxable income, sum the next 12 periodic interest payments after the current payment period. Annual Depreciation = Depreciable Basis ÷ Recovery Period
Net Operating Income
Rent 300,000 − Vacancy/Credit 15,000 + Other Income 15,000 − OpEx 120,000
$180,000
Loan Amount
3,500,000 − 1,500,000
$2,000,000
Mortgage Interest
Sum of next 12 periodic interest payments (Year 2 amortization)
$118,655
Annual Depreciation
Depreciable Basis 2,950,000 ÷ 39
$75,641
Taxable Income
180,000 − 118,655 − 75,641
−$14,296
Final Result
Taxable Income = −$14,296

Negative taxable income indicates paper deductions (interest and depreciation) exceed NOI, creating a tax shelter effect in the current period.

© Annie Scott Realty Group LLCEstimates only · not tax advice

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