First time self employed, having issues due to tax write off

Posted on: 06th Oct, 2009 04:51 pm

I am having trouble now after i gave my lender the taxes for the year 2007 and 2008. I am a computer technician and drive around to job sites quite a bit, each year i had around $25k in mileage deductions. They are now stating with so many deductions on my taxes I would need some kind of co signer.

Any help on this subject at all?

Thanks

it is proving to be quite a hinderance compared to be a w-2 worker to get a home loan.

Total Reply : 8

Hi dvdt,

Getting a loan being self-employed is not as easy as it used to be a few years back. Now, you need to show a steady and sufficient income for at least past 2 years to qualify for a home loan. There are lenders who still offer loans to self-employed people. But they often ask for more than 20% down payment. I think you should with contact some other lenders and see if they can offer you the loan. You can also check out if any of your relatives or friends can co-sign for you.

jenkin7

Posted on: 07th Oct, 2009 01:54 am

is it pretty common to have a relative co sign?

i have showed sufficient income on the taxes but once i take my deductions for mileage and other business expenses they are saying my income after deductions is way too low.

my mileage deductions since i drive for work so often is probably hurting me the most ($25k)

Anonymous

Posted on: 07th Oct, 2009 07:16 am

dvdt - your income, as seen by a lender, is your bottom line number, after all deductions. to that number, depreciation is added back, if you have any. yes, your odds of obtaining a loan are far less when you factor in your deductions, but that's how income is calculated for self employed borrowers. if you have the opportunity to write off less in the way of expenses, you'll be better qualified as a borrower. of course, you'll pay more taxes, so it's a decision you'd have to make.