Posted on: 18th Oct, 2009 06:14 pm
When doing taxes, it asked for what I spent on vehicle upkeep and then number of miles. Well, obviously I didn't spend the 51 cents a mile that the government gives me credit for. So my adjusted gross income for my business was $888, even though my 1099 was over 50K.
Now, I am trying to buy a house and they just look at me and shake their head. I didn't spend 49,000 on my car. I didn't even spend 51 cents a mile.
Is there anything I can do, other than wait until next year and not claim mileage???
Now, I am trying to buy a house and they just look at me and shake their head. I didn't spend 49,000 on my car. I didn't even spend 51 cents a mile.
Is there anything I can do, other than wait until next year and not claim mileage???
I would say wait till the next year, when you file for taxes
The federal mileage deduction includes costs for repairs, maintenance, depreciation, etc.
The depreciation portion of the mileage deduction can be added back to income, not the entire 51 cents, just the depreciation protion of that deduction.
The depreciation portion of the mileage deduction can be added back to income, not the entire 51 cents, just the depreciation protion of that deduction.
tax adjustments to reduce your income can't be reversed for the sole purpose of increasing the income to become qualified for a loan. whatever you've deducted (save for depreciation as expressed above) is an expense to your business and your income is, therefore, calculated just as you've noted. you're not going to find an underwriter in this age who'll go back and be kind to you.
Thats absolutely true in this market