Posted on: 30th Sep, 2008 02:56 pm
Which one is considered by lender as your income?
I am self-employed, write off my expenses and have received conflicting statements from lenders. Is it either or does it vary by lender?
Thought I would separate this from my previous questions.
I am self-employed, write off my expenses and have received conflicting statements from lenders. Is it either or does it vary by lender?
Thought I would separate this from my previous questions.
I went to the Bank yesterday and spoke to the loan advisor and he said Schedule C line 31 was what lenders look at for self employed. But you can add back in line #13 and home office.
However, I have also heard (like the above comment by GregTaxes 2008) that they look at AGI on your 1040. So which is it? Taxes are due tomorrow and I have to know the answer...PLEASE.
However, I have also heard (like the above comment by GregTaxes 2008) that they look at AGI on your 1040. So which is it? Taxes are due tomorrow and I have to know the answer...PLEASE.
Hi Mrs. Mackie,
As far as I know the lenders look at the adjusted gross income of a self employed borrower to offer him/her a loan.
As far as I know the lenders look at the adjusted gross income of a self employed borrower to offer him/her a loan.
The lender will NOT use "gross" but may use AGI or taxable in the case of a self employed borrower. Some W-2'd employees have the ability to take deductions that are filed on a schedule C and depending on the lender will use either AGI or taxable income but most in my experience as a broker for 7 yrs will use the AGI. In the case of a self employed borrower they will use taxable income in most cases.
How can i income in net.
This year I contributed $22,000 to a SEP-IRA, which was subtracted from my total income to determine my AGI. Does this mean I'm going to get penalized in qualifying for a mortgage because I contributed to my IRA rather than spending the money on a cruise?
Hi
Simplified Employee Pension is just a variation of the Individual Retirement Account. You are free to contribute to it upto a certain limit which, as far as I know, is 20% of your income before self employed tax deductions are included. I think you should discuss this with a tax consultant as he is the best person to tell you about this.
Simplified Employee Pension is just a variation of the Individual Retirement Account. You are free to contribute to it upto a certain limit which, as far as I know, is 20% of your income before self employed tax deductions are included. I think you should discuss this with a tax consultant as he is the best person to tell you about this.
I'm trying to get qualified for an apartment, and my adjustable gross income meets the requirements but the above income is more and does not meet requirements. I was told that they are suppose to use the adjustable gross income.they are not familiar with self employment so not sure which way it will go. Does anyone know about this? Oh I also have a taxable income??? HELP
Does Line 24b (meals) on my 1040 (SELF EMPLOYED) tax returns affect somehow my mortgage application and how much I qualify for?
For instance: my gross adjusted income is $20.000. I am a truck driver and "meals and entairtenment" (Line 24b on Schedule C which falls to the category of the 80% limit) is at: $11.000 and they have ALREADY been deducted from my Gross Adjusted (in other words after ALL deductions, last year I put in my pocket some $20.000 and I was taxed for making $20.000). Unfortunately the underwriter comes and from this $20.000 he deducts AGAIN for a SECOND time, the $11.000 and pretty much he claims that I made... $9.000 and according to THIS amount he calculates how much money they can lend me. Is this way correct? Can an underwriter come and deduct AGAIN my "meals" although they have already been deducted in my Tax Return and my Gross Adjusted Income has already been defined?
For instance: my gross adjusted income is $20.000. I am a truck driver and "meals and entairtenment" (Line 24b on Schedule C which falls to the category of the 80% limit) is at: $11.000 and they have ALREADY been deducted from my Gross Adjusted (in other words after ALL deductions, last year I put in my pocket some $20.000 and I was taxed for making $20.000). Unfortunately the underwriter comes and from this $20.000 he deducts AGAIN for a SECOND time, the $11.000 and pretty much he claims that I made... $9.000 and according to THIS amount he calculates how much money they can lend me. Is this way correct? Can an underwriter come and deduct AGAIN my "meals" although they have already been deducted in my Tax Return and my Gross Adjusted Income has already been defined?
I don't think that the meals should be re-deducted! It will be better if you could speak to some other lender in order to get the loan.
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