The actual net cash flow generated by a rental property investment may be different than the amount of income the owner must report for federal income tax purposes. Based on your understanding of the tax implications of mortgage fina difference between taxable income and the property's cash flow when a property is financed with mortgage debt? Since interest payments on mortgage debt are not tax deductible, we would expect taxable income to be greater than the property's cash flow, all else equal. Since interest payments on mortgage debt are tax deductible, we would expect taxable income to be greater than the property's cash flow, all else equal. O Since interest payments on mortgage debt are not tax deductible, we would expect taxable income to be less than the property's cash flow, all else equal. O Since interest payments on mortgage debt are tax deductible, we would expect taxable income to be less than the property's cash flow, all else equal