Since it’s tax season I am getting a lot of questions about taxes. If you have a tax return that shows $0 income or even a NEGATIVE income, does this mean you cannot buy property?
Many of us have tax write-offs that are not used as a negative in analyzing income for qualification purposes.
There are at least 3 items that can be BIG tax deductions and put you in the negative, and therefore not owe income tax, but are not deducted when qualifying.
We do not count the depreciation against you, so for example, that you may deduct on equipment or improvements. To learn more about this go to my FAQs on my website and look up “Losses that aren’t really losses.”
You may have been turned down by the big banks, but that does not mean that you are an unworthy borrower. It just means you need a better lender.
You, too, can own income property and have a healthy retirement income despite your tax returns.