Synoria AI CorporationAutonomous software company
Accounting & Finance

Cash Is Not Taxable Income

A rental can pay you and report a loss in the same year, and both numbers are right - because the bank account and the tax return are charged from different lists. The account is charged PRINCIPAL, which is not deductible; the return is charged DEPRECIATION, which no cash pays for. So the gap between them is exactly depreciation less principal and nothing else. On a 300,000 property with 60,000 of land bought in March, renting at 2,000 a month against 4,000 of expenses and a 240,000 loan at 6.5%, the year puts 1,796.48 in the account and reports a 2,430.11 loss: 6,909.09 of depreciation less 2,682.50 of principal = 4,226.59, to the cent. Three things go wrong routinely. Land does not depreciate - running the whole price through the schedule claims 8,636.36 instead of 6,909.09 and repeats the overstatement every year. The first year is not a full year: a March purchase gets 9.5 months, 2.8788% of basis. And a loss is not automatically usable - at 149,000 of income the allowance is down to 500.00, so 500.00 of that loss is usable now and 1,930.11 is suspended, carried forward rather than lost.

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Accounting & Finance

Small landlords with one or a few properties who want the account and the return to stop contradicting each other, and the bookkeepers who have to explain why a property that paid its owner is showing a loss.

How it works

  1. Enter the price, the land value and the month it was placed in service - the deduction follows.
  2. Enter the rent, the operating expenses and the loan; the year runs payment by payment.
  3. Read the two results side by side and check the gap against depreciation less principal.
  4. Enter your income to see how much of any loss the allowance still reaches this year.

What you gain

  • Shows what the bank saw and what your tax return saw for a rental property, side by side, and names the exact reason they differ — depreciation, not money that went missing.

Screenshot

Cash Is Not Taxable Income

Technical details

Standard57.99 USD · 1500 requests · 31-day license · one-time payment · 31-day access
Pro115.98 USD · 6000 requests · 31-day license · one-time payment · 31-day access
Isolationdedicated instance per license
Usage meteringLLM usage metered per license
Accessweb sign-in with license key

How to set up & use

  1. Buy the license — your key (lic_...) appears on the order page and in your email.
  2. Sign in at app.synoriaai.com with your license key.
  3. No installation — the product runs in your browser, on your own isolated instance.
  4. 1. Enter the purchase price, land value, and purchase month, then click 'Save Property' to see the depreciation schedule.
  5. 2. Review the depreciation amount shown — it excludes land and uses the mid-month convention for the first year.
  6. 3. Enter your monthly rent, annual expenses, loan amount, interest rate, and loan term, then click 'Save Year'.
  7. 4. View the side-by-side results: what your bank statement shows (cash flow) and what your tax return shows (taxable income), including any suspended passive loss.
  8. 5. Check the self-verification note that explains the difference between cash and taxable income as depreciation minus principal.

Frequently asked questions

Is my financial data stored or shared?

No. All inputs are processed locally in your browser and are not saved on any server or shared with third parties.

Does this tool file my taxes or give legal advice?

No. It only calculates and displays the numbers based on the figures you enter. It does not file returns, and it does not account for every possible tax rule or your personal situation.

What happens if I skip taking the depreciation deduction?

The tool still shows recapture based on depreciation allowed or allowable, meaning the tax charge is calculated as if you took the deduction, because the law treats it that way.

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No. You make a one-time stablecoin payment for a 31-day license with a fixed request quota. There is no auto-renewal — to keep using the product, you simply purchase again.
Each plan includes a fixed number of requests for the license period. A small overage allowance is defined beyond that; once it is used up, requests pause until a new license is purchased.
Yes. Every license runs in its own isolated instance with its own data directory — customers never share an instance or data.
On-chain payments are never lost. Keep your order number and contact support; the payment can always be matched to your order.
Each product is built for its target market and uses that market's language; this storefront is available in 9 languages.

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