How to Compute Taxable Income or Loss to Arrive at Cash Flow After Taxes
The profitability of a rental income property, of course, is measured by the amount of cash flow the property generates. What a real estate investor always wants to know when considering his or her profitability from the property for any given year is "How much did I make?" And this is resolved by considering the property's cash flow plus or minus the investor's taxable income or loss.To compute taxable income or loss we must first determine the property's net operating income (NOI). Net operating income is gross operating income less operating expenses. For example, say a rental property generates an annual rental income of $205,993 and annual operating expenses of $41,718 in: The NOI would be $164,275....
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Use a Customer Acquisition Strategy to Bring in New Business
The current economic climate has made life tough for many companies, as attracting new customers and retaining existing ones has never been harder. Firms operating in business to consumer markets are finding things particularly difficult, as wage freezes and inflation have left people with less disposable income and they have become more careful about their spending....