ask you? you have NO IDEA.
She can be earning $2000 from her property from rent after paying true out of pocket cash expenses like rates, maintenance, management fees and insurance and she is effectively earning a positive cash flow of circa $40pw.
When you take of the depreciation (say $4500), she then has a paper loss, of which $2500 can be claimed as a tax loss.
So she can have positive actual cash, and still make a claim on $2500 from the property as a loss.
It's the same reason when my bank looks at my businesses P&L and adds BACK the depreciation to income for lending purposes.
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