How does traditional retirement contributions impact line 31 for a Schedule C 1040? I contribute a lot to retirement which is supposed to reduce my taxable income which isn't good for applying for a mortgage
Why do you subtract out the meals if they’re already an expense listed on line 24b which once subtracted you get your line 31. Why are you subtracting it twice? It is because you only deduct half in the beginning?
Thank you guys. This video is exactly what I needed as I am going through this process currently. I’m worried that I’ll put the wrong thing on my taxes and not get approved. When this happens do people go back and amend their taxes? Or would you just advise to come up with a larger down payment or improve credit?
Hello! I would advise to have a loan officer review your draft tax returns before they are filed. That way if it makes sense for you to not take certain deductions, you will know that in advance. I’d be more than happy to help you with that!
@@themikedrop8376 I’m annoyed that neither my cpa or loan officer mentioned that this was an option, despite going back and forth with both of them multiple times. Thank you.
Lets say a business has been around for 2 years but the owner only took Schedule K distributions the first year and then the second year, they have a w2 and schedule K income from their S Corp. Can you use that one w2 as part of the second year income?
Great video, though I was under the impression that to qualify with only one year of taxes you also had to have over 720 credit score aside of the 5 years history of self employment.
Hi Jorge! No, there is no specific credit score requirement in order to use 1 year of tax returns to qualify. The self-employed individual just has to have been self employed for over 5 years.
If the borrower is W2 and Self employed, it is a little more complicated, but not impossible at all. You can always email me some more details and I can get you additional information. Mike@PMLhomeloans.com
Hi Carlos, we can’t give out the income calculator that we use in house; but if you would like me to run any numbers for you, please just let me know and I would be happy to help! Send me a direct message at, Mike@PMLhomeloans.com
This video is good I just wish you could show on the forms what your talking about so I can see and compare.
How does traditional retirement contributions impact line 31 for a Schedule C 1040? I contribute a lot to retirement which is supposed to reduce my taxable income which isn't good for applying for a mortgage
Why do you subtract out the meals if they’re already an expense listed on line 24b which once subtracted you get your line 31. Why are you subtracting it twice? It is because you only deduct half in the beginning?
did you ever get an answer to this question? Channel owner can you answer this one?
Thank you guys. This video is exactly what I needed as I am going through this process currently. I’m worried that I’ll put the wrong thing on my taxes and not get approved. When this happens do people go back and amend their taxes? Or would you just advise to come up with a larger down payment or improve credit?
Hello! I would advise to have a loan officer review your draft tax returns before they are filed. That way if it makes sense for you to not take certain deductions, you will know that in advance. I’d be more than happy to help you with that!
@@themikedrop8376 I’m annoyed that neither my cpa or loan officer mentioned that this was an option, despite going back and forth with both of them multiple times. Thank you.
Lets say a business has been around for 2 years but the owner only took Schedule K distributions the first year and then the second year, they have a w2 and schedule K income from their S Corp. Can you use that one w2 as part of the second year income?
I wish they could have shown the return to see what they were looking at, and blurred out the applicant’s name.
I know. I'm tryin to follow with a return open but where is line 31? Mine goes to 28.
What if I got a new contract that I couldn't complete because of injury.? Does that count.?
Great video! If I’ve been self employed for 9yrs, what is the likelihood that I only have to use 1 years worth of tax returns ?
Pretty likely you can use 1 year. As long as you tell them you’ve had the same business for that long
How to prove sole proprietorship income to qualify for mortage???
Share the spreadsheet
Great video, though I was under the impression that to qualify with only one year of taxes you also had to have over 720 credit score aside of the 5 years history of self employment.
Hi Jorge! No, there is no specific credit score requirement in order to use 1 year of tax returns to qualify. The self-employed individual just has to have been self employed for over 5 years.
@@premiermortgagelending thank you for the clarification. 👍👍
Great video. What about line 13. Can the depreciation be added to the net profit as more income.
Hi Avalon, thank you for your question. Yes, in some cases it can be; however, I was just trying to keep it simple for this video! Hope this helps!
What if they are w2 and self employed i.e. 1099?
If the borrower is W2 and Self employed, it is a little more complicated, but not impossible at all. You can always email me some more details and I can get you additional information. Mike@PMLhomeloans.com
can i get a copy of the income calculator spreadsheet ?
Hi Carlos, we can’t give out the income calculator that we use in house; but if you would like me to run any numbers for you, please just let me know and I would be happy to help! Send me a direct message at, Mike@PMLhomeloans.com
The title says how to qualify. This is obviously a how to quantify video. NOT the same question at all!
Terrible!