[patientrenter]

[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.

[patientrenter]

[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.

[patientrenter]

[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.

[patientrenter]

[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.

[patientrenter]

[quote=meadandale][quote=patientrenter]If we want to accommodate gaming of income taxes by the self-employed[/quote]

I’m not gaming my income taxes. I pay an exorbitant amount of income taxes at both the state and federal level.
[/quote]

I didn’t say you were gaming your taxes, meadandale. To know whether you did or didn’t, I’d have to know your financial situation better than any mere blog poster.

I too pay a very high % of my (real) income in taxes. Some people with the same income may consider the amount of taxes exorbitant, some consider it fair, and some consider it too low. We live in a society governed by uniform laws, and regardless of how we feel, I think people with the same income should pay the same taxes. Our feelings about taxes shouldn’t allow us to pay less than others.

[patientrenter]

[quote=meadandale][quote=patientrenter]If we want to accommodate gaming of income taxes by the self-employed[/quote]

I’m not gaming my income taxes. I pay an exorbitant amount of income taxes at both the state and federal level.
[/quote]

I didn’t say you were gaming your taxes, meadandale. To know whether you did or didn’t, I’d have to know your financial situation better than any mere blog poster.

I too pay a very high % of my (real) income in taxes. Some people with the same income may consider the amount of taxes exorbitant, some consider it fair, and some consider it too low. We live in a society governed by uniform laws, and regardless of how we feel, I think people with the same income should pay the same taxes. Our feelings about taxes shouldn’t allow us to pay less than others.

[patientrenter]

[quote=meadandale][quote=patientrenter]If we want to accommodate gaming of income taxes by the self-employed[/quote]

I’m not gaming my income taxes. I pay an exorbitant amount of income taxes at both the state and federal level.
[/quote]

I didn’t say you were gaming your taxes, meadandale. To know whether you did or didn’t, I’d have to know your financial situation better than any mere blog poster.

I too pay a very high % of my (real) income in taxes. Some people with the same income may consider the amount of taxes exorbitant, some consider it fair, and some consider it too low. We live in a society governed by uniform laws, and regardless of how we feel, I think people with the same income should pay the same taxes. Our feelings about taxes shouldn’t allow us to pay less than others.

[patientrenter]

[quote=meadandale][quote=patientrenter]If we want to accommodate gaming of income taxes by the self-employed[/quote]

I’m not gaming my income taxes. I pay an exorbitant amount of income taxes at both the state and federal level.
[/quote]

I didn’t say you were gaming your taxes, meadandale. To know whether you did or didn’t, I’d have to know your financial situation better than any mere blog poster.

I too pay a very high % of my (real) income in taxes. Some people with the same income may consider the amount of taxes exorbitant, some consider it fair, and some consider it too low. We live in a society governed by uniform laws, and regardless of how we feel, I think people with the same income should pay the same taxes. Our feelings about taxes shouldn’t allow us to pay less than others.

[patientrenter]

[quote=meadandale][quote=patientrenter]If we want to accommodate gaming of income taxes by the self-employed[/quote]

I’m not gaming my income taxes. I pay an exorbitant amount of income taxes at both the state and federal level.
[/quote]

I didn’t say you were gaming your taxes, meadandale. To know whether you did or didn’t, I’d have to know your financial situation better than any mere blog poster.

I too pay a very high % of my (real) income in taxes. Some people with the same income may consider the amount of taxes exorbitant, some consider it fair, and some consider it too low. We live in a society governed by uniform laws, and regardless of how we feel, I think people with the same income should pay the same taxes. Our feelings about taxes shouldn’t allow us to pay less than others.

[patientrenter]

[quote=urbanrealtor]
The difference today is that banks are less concerned about market share and generally more gun shy.
[/quote]

I sure hope you are correct. Vive la difference!

[patientrenter]

[quote=urbanrealtor]
The difference today is that banks are less concerned about market share and generally more gun shy.
[/quote]

I sure hope you are correct. Vive la difference!

[patientrenter]

[quote=urbanrealtor]
The difference today is that banks are less concerned about market share and generally more gun shy.
[/quote]

I sure hope you are correct. Vive la difference!

[patientrenter]

[quote=urbanrealtor]
The difference today is that banks are less concerned about market share and generally more gun shy.
[/quote]

I sure hope you are correct. Vive la difference!

[patientrenter]

[quote=urbanrealtor]
The difference today is that banks are less concerned about market share and generally more gun shy.
[/quote]

I sure hope you are correct. Vive la difference!

[patientrenter]

[quote=meadandale][quote=SD Realtor]How do you pay yourself? Showing W2 income makes it a no brainer.
[/quote]

Unless you pay yourself a pretty low salary via w2 to avoid outrageously high payroll taxes…;-)[/quote]

If we want to accommodate gaming of income taxes by the self-employed, then why not have two categories of home loans – one that is deductible if the underwriting for income was based exclusively on income tax returns, and an alternative on which no interest is deductible and which can use income information other than tax returns?

[Author]

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