#MeToo

Definitely not a tax expert Allen. What a tax return shows for income is certainly not always what real income with cash basis accounting, so I am not saying this is your case, but what I mention above relates to your example. If a person's Net Operating Income minus Interest, Depreciation, and Amortization equals zero, then he has no free cash available. But for the land principal portion of the Amortization, that must be added back in because it is not a depreciable item. So even though the person has no cash, he still owes tax on that portion of the payment putting him in arrears.