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Might be Smart if trying to buy home being self employed

Discussion in 'BlackHat Lounge' started by Quit925today, Jun 2, 2017.

  1. Quit925today

    Quit925today Newbie

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    I know a fairly new small business owner who doesn't write off many taxes like advertising, goods, etc. to have a larger net profit to show the bank when he got approved for a nice home. Is this even legal or is it his own stupidity paying the government more taxes. He did get approved for his home being self employed for 2 years.

    If your making some good cash and you know banks go by net not gross when your self employed that might be a good strategy to have a better chance of getting approved and a nicer home. Thoughts?
     
  2. Sophie

    Sophie Jr. VIP Jr. VIP

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    It really depends on the individual. He can get bigger loans which can be advantageous if he wants to borrow a bigger loan at a better rate. I wouldn't mind paying thousands of dollars in extra taxes to let me get a bigger loans of tens of thousands in the end.

    Then again, I hate taking loans.
     
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  3. Quit925today

    Quit925today Newbie

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    True! I think next time I do my taxes I not going to claim much to get more net. Then go to the bank and ask for a bigger loan when I buy a home. He is not the 1st I heard doing that.
     
  4. natedogg

    natedogg Regular Member

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    I know a lot of people offline and online who don't deduct things to have a bigger net profit when they go for homes. Hey, if you want to get approved for a nice big house and show a big net income go for it. Get ready to pay the IRS a nice sum of money. I knew someone from the warrior forum back in the day that did this and the bank approved him for a nice size sum and guess what the home was foreclosed.
     
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