Claming deductions (losses) on your personal/business taxes
As discussed on many previous podcasts, posts most recently in the latest podcast and as general conversation, the discussion of private financing vs traditional financing.
I have spend the better part of this year, thus far, speaking to lenders, daily, on the phone via email, smoke signal; basically, whatever means I could get, in a vigorous attempt to obtain financing.
If it isn't one thing its another with these guys. What I'm going through now, reminds me to a memory of my tax prepare, of about 10 years, said to me, "play the game, leave the rest up to me"; in essence, put your money into the system, pay your da*n taxes and I will get you an amazing return.
This system worked great, until I wanted to start a REI business.
So, have you been swayed one way or the other, claiming a mound of business deductions on your business or personal taxes or just biting the bullet and writing the check?
I know many of you all swear by private $, but someone of us would like to use the traditional means, while we can (small portfolio size).
Most Popular Reply
So what I think you're asking is if some people deliberately under report their expenses in order to keep their DTI higher? If that's the case, the IRS does not care. You can over report your income all day long and pay the higher taxes and the IRS won't question it.
However, if you do so, I'm pretty sure you've just committed mortgage fraud if that's what you're using to qualify for a mortgage.
Your legitimate business expenses are what they are and you should report not one dime more and not one dime less. If your DTI is too high, then figure out how to make more money legitimately or legitimately reduce your expenses.