Self employment income

[zander]

Is any one working with Chase that is self employed, think i should have gotten professional help filling in the financial forms really worried i did something wrong. Lot of deductions that may show short on income however biz is in home and some are for business use of home will they understand that

[Evan Bedard]

Is any one working with Chase that is self employed, think i should have gotten professional help filling in the financial forms really worried i did something wrong. Lot of deductions that may show short on income however biz is in home and some are for business use of home will they understand that

Hi Zander,

Did you make a profit and loss for your business?

[zander]

I have a small biz and have a tax conlultant prepare my taxes annually complete with profit and loss statement but of course i haven't done taxes yet this year and would have no idea how to begin to put one together. showed a profit last year

[Evan Bedard]

I have a small biz and have a tax conlultant prepare my taxes annually complete with profit and loss statement but of course i haven't done taxes yet this year and would have no idea how to begin to put one together. showed a profit last year

Many people will have their tax consultant do a current p&l to provide to your lender. Some lenders will accept a 3month and others will require a year to date p&l..

[zander]

They asked for a year to date, next tax appointment is in Feb. should i just wait for that date i'm in my fourth month trial payment, or are they going to come back at me and say packet incomplete even though i have called to ask if they need anything no less than once week since august?

[Evan Bedard]

If the packet is complete you should be fine. Make sure that they have calculated your income correctly..

[zander]

I subcontract and have submitted 1099's for past two years. Money is not my forte trust me when i tell you this i used to be a securities broker, and these sharks are out for blood our blood.which is why i have someone else take care of client payment collection. Taxes ect... tired of chasing the almighty dollar. How can i find out how they are calculating my income? I am so lost in this process.

[davephx]

As part of the Trail Mod Agreement Income verification is needed.

It has to be for EITHER the last 3 months or year-to-date if self employed.

I also have office in home that shows up on tax return but I do a P/L from Quicken Home and Business and don't include it since assume they are looking for cash outlays for business not the allocation of home office expense.

If you just report from 1099's you may overstate your income if you have business expenses or understate if you have other income not on 1099. All this has to compare against the 31% test which is for net income if self employed.

You do not need 1099's for prior years, they will pull your tax returns and they (or Citi did) ask for 2008 return. Although technically not needed since they can now pull from IRS computer.

All this makes sense since they are required to verify income so they look at what you report now on P/L and have to look for over/under reporting to raise questions from what your tax returns show.