Hello BP Community, 

I'm having a bit of a dilemma, I currently work with my dad but have been paid in cash, so I haven't filed any taxes within the past year, since July of 2020 which is when I started working more consistently. I haven't worked consistently since I still go to college, but have gained some capital. Now as I'm learning and preparing to buy my first property, I've come to realize that I need to file taxes in order to have this presented to loaners such as conventional banks. I do understand that I could get a private lender but I would like to have other options, I'm not sure if I should be filing for a 1099 with the amount of Money I've made which is about 10k. Should I try to get a job that gives a W-2 instead? Since it would technically be easier to show banks? How important are taxes when buying your first property? I'm 20 and working with my dad in painting houses is all I've done, I enjoy working with him on his business, in the process of getting his contractors license, and advice is really helpful! Thanks BP Community!

I believe you are going to need 2 years of tax returns if you go the 1099 route. If you go the W2 a few months after college your income should qualify you to get a property. If you are planning to buy as soon as possible I think W2 is a better option. 

Unless you are planning to pay cash, the bank will give you the loan based on your taxes so it is really important to get your taxes done. 

Typical Fannie Freddie FHA USDA VA loans require a 2 year work history. Most will want at least 2 years W2's and 30 days pay stubs to be considered stabile income. However you can do it at 1 year worth of provable stable income. Provable is at minimum 1 year W2 and 30 days pay stubs, they could also ask for your tax returns. Most don't, as they will pull a 4506T tax transcript from the IRS. So long as it matches the W2 you are good to go.

Thanks, I appreciate all the feedback @Kevin Romines & @Joaquin Camarasa