RentalCalcs · Original evidence worksheet

Reconcile the rental’s NOI

Keep operating performance, cash available and tax records separate. Fill locally, then print or save as PDF. Nothing is submitted or automatically saved.

Read the complete worked guide

Worked annual example

$25,080 effective income − $8,008 operating costs = $17,072 NOI before reserves. Deduct $1,500 reserves and $11,975 principal/interest for $3,597 cash before income tax. The separate tax case assumes actual receipts and deductible costs match those figures, with $10,452 interest and $6,000 allowable depreciation: about $620 before limitations, not a tax bill. Rounded dollars; compare the article’s full assumptions.

1. Establish the operating result

Property, reporting period and source documents; actual results or future forecast?Scheduled rent and other income; collections; loss allowance (do not deduct losses twice)Operating costs: taxes, insurance, management, repairs, utilities, HOA and administrationSeller NOI, each adjustment and reason, evidence date and your reconciled NOI

2. Reconcile cash and tax separately

Reserve convention, amount earmarked, actual capital work and opening cash bufferPrincipal and interest for the same period; separate escrow already included in operating costsCash after debt and reserve; do not deduct a reserve already included in the tool resultTax records: actual receipts, deductible expenses, interest and separately established depreciation; unresolved adjustments

3. Test the decision

Downside rents, collection loss, taxes and insurance; resulting NOI and cash cushionTool/lender definition reconciliation, missing evidence and next action

Use the right definition

RentalCalcs’ single-family itemized expenses include the CapEx reserve. Add it back to compare displayed NOI with a before-reserve figure. Do not subtract that reserve twice when calculating cash. Depreciation belongs in the tax records, not property NOI.

Reviewed October 16, 2026. Original hypothetical example; this worksheet does not calculate an individual tax return. Definition sources: Fannie Mae Form 4254.DEF and IRS Publication 527.