this is true to some extent nows a good time to buy tho save alot from renting 30k house etc... the payments are less then renting but depends on your situation i think.
Issues with Day Traders qualifying for a Mortgage
- Thread starter NERVESASTEEL
- Start date
Quote from NERVESASTEEL:
The LLC sounds good! And I would think if you designated an entire room for your office, that you should be deductible! But I'll talk to my accountant. Thanks!
Does anyone know of a site that specifically instructs a trader how best to setup their LLC???
Green & Company has a consultation service on entity formation.
http://www.greencompany.com/
He also has a nice book about taxes, entity formation, retirement plans, etc...
Yeah you would think.
I really dont know what the deduction the guy was trying to claim (maybe it was someting outrageous like 30% of mortgage) But when I heard he got audited I was all over him for details.
Basically they broke it down into a % of manhours in the week for the Car Deduction. And a Desktop SqFt vs % of house.
Tread lightly on the deductions right now. Traders are in the crosshairs.
Quote from NERVESASTEEL:
Even in this down market, a decent apartment in NYC goes for well over 1M. I want to keep as much of my bank as possible, while capitalizing on this investment opportunity.
The LLC sounds good! And I would think if you designated an entire room for your office, that you should be deductible! But I'll talk to my accountant. Thanks!
Does anyone know of a site that specifically instructs a trader how best to setup their LLC???
the thing is, if the bank wants to see 2 years of tax returns for the LLC before they give you a mortgage, you won't be able to give them that because the LLC will be brand new
True but as a business person which owns tangible assets. The bank will base the loan more on a collateral/asset based profile. (thats the catch though) Business people with huge assets dont need the Mortgage.
Either way its tough on the stay at home trader to qualify for the mortgages. People who choose to get cute with their Employment Status(es) because they were thinking they are saving in taxes cant go about getting the normal mortgage without income proof.
I have a friend who has operated a business for 20 years and has a ton of money but runs his books so that it looks like he has very little income. I guess the business pays a lot of his bills directly and supplies vehicles etc.
Recently he had trouble financing a large boat and ended up getting an ARM. They would not give him a fixed rate loan. Pissed him off something awful but he pulled the trigger anyway. Now he is adjusting his accounting methods to show better income.
Recently he had trouble financing a large boat and ended up getting an ARM. They would not give him a fixed rate loan. Pissed him off something awful but he pulled the trigger anyway. Now he is adjusting his accounting methods to show better income.
maybe there are some local credit unions that will work with you
Exactly. Business Owners have been told for years by CPA's to legally hide profits from the tax man. But as traders, we need the profits to prove income. Especially for the Mortgages.
The Bank wont call to verify income if you tell them you are a Family or Single Person Small Business.