Can you claim primary residence income

5 Replies

I currently have my Business under lease for the portion of the house that I use and my baswnt rented out. With both incomes the mortgage on my primary residence is covered and I have a positive cashflow. My question today is this: can I use this information on my personal financial statement and report it as income when applying for a mortgage? Thank you
Originally posted by @Nicholas Zumwalt :
I currently have my Business under lease for the portion of the house that I use and my baswnt rented out. With both incomes the mortgage on my primary residence is covered and I have a positive cashflow.

My question today is this: can I use this information on my personal financial statement and report it as income when applying for a mortgage? Thank you

 Yes. 

If you are reporting this Income in the tax return, they would compare your financial with the tax return. 

They should be consistent. 

Absolutely use it if you are claiming it as income on your taxes. If you are not presently claiming it as income on your taxes you may want to rethink using it when applying for a mortgage. You can't have your cake and eat it too.

@Ashish Acharya I am reporting it as a business expense for the business and then an income on my personal. So what you are saying is that as long as my tax return reflects the additional income appropriately then a lender would have no issue with using it as a source of income when applying for a mortgage? Thank you

Hi Nicholas,

Definitely show it on your personal financials as income and on your business financials as expense. The bank will probably request your business reports as well. It is best for you to show as much income as you possibly can, but you need to be consistent with your tax returns, I agree with the previous posts.