Underwriting wants to deduct expenses - help.

Hello sir, my family is from Clark fork. McMillan's.. any how, the form you filled out is a 2106 form its a unreimbursed business expense form that form if in fact you filed jointly it will be used against you because you are both filled jointly. That money gets taken right from the top and this then creates a lower income. You are more than welcome to call me at 208-571-0994

First, for lending purposes, we only need your last 2 years tax returns, (2016 & 2017)... so what happened in 2015 is irrelevant. But if you meant 2016, then we would need more info.. When you file your taxes, one of the IRS documents you fill out is IRS Form 2106, for "non-reimbursed" business expenses. If this document has both your names on it, then the expenses were shared jointly, and therefore must be deducted from the income.. However, if your wife is paid with a W2 and is NOT paid more than 25% of her income in commissions or bonuses, then tax returns are not needed and 2106 expenses are ignored. If tax returns are needed but the IRS Form 2106 is in Husbands name only, then the expenses can be ignored.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Obviously if your wife can qualify per the scenario that William Acres described, avoiding tax returns altogether will eliminate having to include those expenses in determining wife's qualifying income (assuming she is a w-2 employee). What is not clear is why you cannot simply go on the purchase together. I am assuming you are the only one on the current home loan? Since it sounds like you are purchasing it really as your primary home, thereby renting out your current home, you could possibly qualify together and subtract the majority of future rent from DTI in qualifying (simply requires a rental agreement and the copy of check for initial deposit.) There is even a loan now whereby lender will not count the PITI of the current home in qualifying DTI as one seeks to purchase that dream home. Whether you rent it out or sell it afterwards, the loan is allowing you to purchase without including that part of the equation in qualifying.