[jimmyle]

An update–

They approved the loan. We signed the docs on Tuesday thinking everything is done. Suddenly this morning I got a call from the Broker.

She said before funding, the lender wants to know why my wife’s income dropped from 2008 to 2009. I explained that my wife had less overtime hours in 2009. And then the lender also wants to know what is my 2008 schedule C income of my 2008 tax form? I explained that it was a loss in mutual fund investment.

Don’t they do this before approving the loan and doc signing?

[jimmyle]

An update–

They approved the loan. We signed the docs on Tuesday thinking everything is done. Suddenly this morning I got a call from the Broker.

She said before funding, the lender wants to know why my wife’s income dropped from 2008 to 2009. I explained that my wife had less overtime hours in 2009. And then the lender also wants to know what is my 2008 schedule C income of my 2008 tax form? I explained that it was a loss in mutual fund investment.

Don’t they do this before approving the loan and doc signing?

[jimmyle]

An update–

They approved the loan. We signed the docs on Tuesday thinking everything is done. Suddenly this morning I got a call from the Broker.

She said before funding, the lender wants to know why my wife’s income dropped from 2008 to 2009. I explained that my wife had less overtime hours in 2009. And then the lender also wants to know what is my 2008 schedule C income of my 2008 tax form? I explained that it was a loss in mutual fund investment.

Don’t they do this before approving the loan and doc signing?

[jimmyle]

I already have $10k from the seller for closing costs and the total closing cost including termite fumigation is around $10k. So I might have to declare this $5k as 1099 income. I think I will hire a tax accountant for next year.

[quote=SD Realtor]hehehehe –

dont bring him down data…

Actually how you take the rebate will determine how your tax return is affected. If you take the income straight up then yeah it can and should be declared… Basically 1099 income.

However if you take the income inside escrow and use it to cover various closing costs then you will be okay. However do not try to double end it and actually use expense those closing costs that the rebate covered.[/quote]

[jimmyle]

I already have $10k from the seller for closing costs and the total closing cost including termite fumigation is around $10k. So I might have to declare this $5k as 1099 income. I think I will hire a tax accountant for next year.

[quote=SD Realtor]hehehehe –

dont bring him down data…

Actually how you take the rebate will determine how your tax return is affected. If you take the income straight up then yeah it can and should be declared… Basically 1099 income.

However if you take the income inside escrow and use it to cover various closing costs then you will be okay. However do not try to double end it and actually use expense those closing costs that the rebate covered.[/quote]

[jimmyle]

I already have $10k from the seller for closing costs and the total closing cost including termite fumigation is around $10k. So I might have to declare this $5k as 1099 income. I think I will hire a tax accountant for next year.

[quote=SD Realtor]hehehehe –

dont bring him down data…

Actually how you take the rebate will determine how your tax return is affected. If you take the income straight up then yeah it can and should be declared… Basically 1099 income.

However if you take the income inside escrow and use it to cover various closing costs then you will be okay. However do not try to double end it and actually use expense those closing costs that the rebate covered.[/quote]

[jimmyle]

I already have $10k from the seller for closing costs and the total closing cost including termite fumigation is around $10k. So I might have to declare this $5k as 1099 income. I think I will hire a tax accountant for next year.

[quote=SD Realtor]hehehehe –

dont bring him down data…

Actually how you take the rebate will determine how your tax return is affected. If you take the income straight up then yeah it can and should be declared… Basically 1099 income.

However if you take the income inside escrow and use it to cover various closing costs then you will be okay. However do not try to double end it and actually use expense those closing costs that the rebate covered.[/quote]

[jimmyle]

I already have $10k from the seller for closing costs and the total closing cost including termite fumigation is around $10k. So I might have to declare this $5k as 1099 income. I think I will hire a tax accountant for next year.

[quote=SD Realtor]hehehehe –

dont bring him down data…

Actually how you take the rebate will determine how your tax return is affected. If you take the income straight up then yeah it can and should be declared… Basically 1099 income.

However if you take the income inside escrow and use it to cover various closing costs then you will be okay. However do not try to double end it and actually use expense those closing costs that the rebate covered.[/quote]

[jimmyle]

What? It didn’t enter my mind. Should I pay taxes on this?

[quote=DataAgent][quote=jimmyle]I am getting a $5000 kick back from my agent. It is more than 1%. But my agent is my sis-in-law so she is being generous. Normally people get 0.5% to 1% depending on how much you are spending on the house.[/quote]

So are you planning to pay income tax on that $5000?[/quote]

[jimmyle]

What? It didn’t enter my mind. Should I pay taxes on this?

[quote=DataAgent][quote=jimmyle]I am getting a $5000 kick back from my agent. It is more than 1%. But my agent is my sis-in-law so she is being generous. Normally people get 0.5% to 1% depending on how much you are spending on the house.[/quote]

So are you planning to pay income tax on that $5000?[/quote]

[jimmyle]

What? It didn’t enter my mind. Should I pay taxes on this?

[quote=DataAgent][quote=jimmyle]I am getting a $5000 kick back from my agent. It is more than 1%. But my agent is my sis-in-law so she is being generous. Normally people get 0.5% to 1% depending on how much you are spending on the house.[/quote]

So are you planning to pay income tax on that $5000?[/quote]

[jimmyle]

What? It didn’t enter my mind. Should I pay taxes on this?

[quote=DataAgent][quote=jimmyle]I am getting a $5000 kick back from my agent. It is more than 1%. But my agent is my sis-in-law so she is being generous. Normally people get 0.5% to 1% depending on how much you are spending on the house.[/quote]

So are you planning to pay income tax on that $5000?[/quote]

[jimmyle]

What? It didn’t enter my mind. Should I pay taxes on this?

[quote=DataAgent][quote=jimmyle]I am getting a $5000 kick back from my agent. It is more than 1%. But my agent is my sis-in-law so she is being generous. Normally people get 0.5% to 1% depending on how much you are spending on the house.[/quote]

So are you planning to pay income tax on that $5000?[/quote]

[jimmyle]

Scarlett,

No, she is just the buyer agent. Actually, it was difficult for me to ask and I didn’t since she is my sis-in-law and I didn’t want to look like a cheap guy. I just take whatever she gives me.

[quote=Scarlett]Jimmy, was your agent a dual agent or not? I guess her being a relative makes it easier to hash things out :)[/quote]

[jimmyle]

Scarlett,

No, she is just the buyer agent. Actually, it was difficult for me to ask and I didn’t since she is my sis-in-law and I didn’t want to look like a cheap guy. I just take whatever she gives me.

[quote=Scarlett]Jimmy, was your agent a dual agent or not? I guess her being a relative makes it easier to hash things out :)[/quote]

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