02/22/2022
Tax season can be exciting for some and not so exciting for others. Either way, it’s something that HAS to be done! The last thing you want to do is be in trouble with Uncle Sam. During the year, entrepreneurs are usually collecting receipts and documenting expenses in preparation for writing everything off during tax season but be careful with this, especially if you want plan on purchasing a home. The more you write off, the less your income will be on paper and the less you will qualify for when it comes to mortgage. I had this conversation with one of my preferred Loan Officers a few days ago.
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So what can you do? Here are some suggestions:
*If you’re an entrepreneur who also has a full time job, use your full time job income to qualify for a mortgage and continue to do your write offs for your business. You can either just use your W-2 income to qualify for a mortgage, or you can also count your 1099 income knowing it won’t be as much but it will add something!
*If you’re a full-time entrepreneur with no other income, cut back on your tax write-offs. It may be more money out of your pocket at the time, but will help you qualify for a mortgage in the long run. Any entrepreneur who owns a home will tell you that it is HARD to qualify for a mortgage as a business but it can be done. Budget strategically and also look for business grants to help with your expenses!
*Schedule a consultation with a local Loan Officer, they will be able to go more in depth with this and help you better prepare to purchase a home.
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Think you’re ready to buy, sell, rent, rent to own or invest? I am now accepting new clients! Even if you’re not quite ready or don’t know where to start, contact me so we can come up with a game plan 💗
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Imani White, Realtor®️
Samson Properties
(301)-710-0850 (office)
(240)-695-6602 (cell)
[email protected]
www.imaniwhiterealtor.com
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