[quote=Russell][quote=nostradamus]I think our fico score and bank history go a long way to get a loan. 1099 is perfectly acceptable.[/quote]
In my case I don’t have a 1099, just sweat equity.
I could have probably set myself up much better by paying myself to build the two houses, thus increasing my cost basis against future capital gains. I could have taken advantage of my breeding years for tax deductions on that income while paying into social security.Then I would look great to lenders and they would give me tons of cheap and easy money.Bwaaaaah!My tax guy is fired.[/quote]
Rus, I guess my suggestion about having 2 types of loans, one tax deductible and one non-deductible, was my way of sorta agreeing with you! It is unfortunate for an individual if paying less taxes in the past results in less ability to borrow in the future on a tax-preferred basis. But I think this outcome is fair for all of us as members of one society. We are stuck with having to live as social animals, in one nation, however much we may dislike some of the others we’re lumped in with.
I don’t know the IRS rules about how much a company controlled by an owner can declare as income from the company, but I’d be surprised if it’s just whatever amount that produces the least taxes. I’d also be surprised if the rules are observed in the spirit as well as the letter. And I’d continue to be surprised if the IRS actually enforced the rules thoroughly. So, although small business owners may have it tough in lots of other respects, I think it’s fair to say that the freedom they get to lower their taxes on a given amount of income is significantly greater than w2 wage slaves. My hats are off to people who run their own business – really – but my admiration runs out on special tax deals. We all want to pay less taxes as individuals. It becomes unfair when the easy marks pay the greatest %. / end tax rant.
