During the last week and a half since I posted about common trip-ups for calculating income for wage earners, I have had quite a few inquiries about what, exactly, an unreimbursed business expense is. And while many of the concerns have been quite irrelevant, it is a common issue I run into for clients, and […]

As a final piece to this series on calculating income for mortgage purposes for both wage earners and self-employed borrowers, I thought it would be important to explain how we view other types of income. Many borrowers don’t realize which types of income can and cannot be considered for a mortgage, and in what situations […]

There are a number of reasons why people declare extensions on their taxes, but I have found that it is most commonly done by small business owners who have very complicated returns due to multiple income streams and a number of different types of write offs. These people are often earning a nice living, own […]

Last week, I discussed how to calculate income for the purposes of obtaining a mortgage for wage earners. The process is usually quite simple, but there are a few things which can come up that can throw your income calculations completely out of whack. And if you are looking to buy a house right at […]

For the last few weeks, I have been explaining how to calculate income for people who are self employed. This includes anyone who owns a sole proprietorship, LLC, C-Corp, S-Corp, or is a member of a partnership. And now that I have covered that, I thought it might be a good idea to explain how […]

Over the last few weeks, I have explained how to calculate income for various self employed entities for the purpose of getting a mortgage. Last week, I covered S-Corps and C-Corps and the week before I covered LLC and Sole Proprietorship income. Today, I would like to finish off the self employed income types with […]

Last week, I explained how to calculate personal income from business entities which are filed through your personal tax returns, namely the Sole Proprietorship and the LLC. This week, I have decided to tackle the more complicated corporate structures. I started the week with the S-Corp, which is most like the other 2 structures, and […]

Last week, I explained how to calculate your personal income from an LLC and a sole proprietorship, at least from a mortgage underwriting perspective. This week, I will tackle the two corporate entities: the S-Corp and the C-Corp. The C-Corp is the standard “corporation,” and is what most people think of when they think of […]

On Tuesday, I discussed ways to calculate income for a sole proprietorship. Today, I will discuss how you calculate your personal income if you are a member of a LLC. This information is important if you are planning to purchase a new home, as that income is what will ultimately qualify you for the house. […]

Many small (and no-so-small) business owners have difficulty understanding what their income is for the purposes of buying a house. There was a time when business owners could simply state their income and banks would accept that, understanding that “actual” income is not always what they show on paper. Unfortunately, those days are long gone […]