Posted on: 12th Nov, 2013 01:14 am
Hi everyone... need your opinion. Husband and I run an online business from our apartment, will lenders use "income" before the taxes or after the taxes?
Well, as far as I know, the lenders will use your adjusted gross income which includes your reported income minus the expenses, but before taxes.
Hi Guest,
I agree with Niicss that they will consider the income that you earn before paying the taxes.
Thanks
I agree with Niicss that they will consider the income that you earn before paying the taxes.
Thanks
You run a business........................
That implies you are self employed.
Being self employed, you operate as a Sole Proprietor or a Parnership or an S-Corp or a Corporation.
The income used for mortgage qualification is the income after expenses. You can add back paper expenses like depreciation.
If you file as a Sole Proprietor, the income used will be AFTER expenses and before you pay your personal taxes.
That implies you are self employed.
Being self employed, you operate as a Sole Proprietor or a Parnership or an S-Corp or a Corporation.
The income used for mortgage qualification is the income after expenses. You can add back paper expenses like depreciation.
If you file as a Sole Proprietor, the income used will be AFTER expenses and before you pay your personal taxes.
