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Are section 179 deductions able to be added back to AGI to assist in qualification?

by leslie953 from Mountain View, California. Jan 27th 2016 Reply


Ray Jones (OneRay)
#897 ranked lender in California - 14 contributions

That's an excellent question. You may know that depreciation is added back to income for mortgage qualification because it is not a "real" expense but a tax code reduction of taxable income. Section 179 expenses are those business asset purchases that can be expensed entirely the first year rather than depreciated over time. You thinking is correct. 179 expenses are added together with depreciation on one's Schedule "C" & "F" and this entire box is added back to income in the Cash Flow Analysis used for mortgage qualification.

Jan 28th 2016
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