Discover 4506-T

[Anonymous]

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@CreditCuriosity wrote:

Yes that was a mistake adding 45k sale of property as that isn't income(you should of known that isnt income, but assets).  They most likely use sources like the money works, etc to see your income and that jump set off alarm bells..  Send it in what you have being the 105k income if you so choose  and hope for the best or just close the account.  It is up to who to proceed

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Sale of property is income. Its income in every single tax jurisdiction in the US. (Assuming the OP is in the US). Once you sell something, anything, it moves from the asset class to income. The problem for the OP is it appears they are incorporated. Which is the smart business thing to do. It means the corp pays the taxes and not you (at a higher rate). The downside is it is not their income, its the corp income. so it will not apear on their personal taxes. Exceptions are sole proprietorship and single memeber LLC. But it sounds (based in the tax form mentioned) that thye are neither of those. 

I cannot remember if Discover does this but some credit apps ask if you have income other than your salary. Thats where he could have put the $45,000. I say "could" because personally for a credit card I would not. (I have for car loans, mortgages etc.) With a credit card app best thing to do is keep it simple. Because if you have to provide POI you will have to produce your business taxes. Thats a hassle beyound a 4506 form.

[CreditCuriosity]

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@Anonymous wrote:

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@CreditCuriosity wrote:

Yes that was a mistake adding 45k sale of property as that isn't income(you should of known that isnt income, but assets).  They most likely use sources like the money works, etc to see your income and that jump set off alarm bells..  Send it in what you have being the 105k income if you so choose  and hope for the best or just close the account.  It is up to who to proceed

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Sale of property is income. Its income in every single tax jurisdiction in the US. (Assuming the OP is in the US). Once you sell something, anything, it moves from the asset class to income. The problem for the OP is it appears they are incorporated. Which is the smart business thing to do. It means the corp pays the taxes and not you (at a higher rate). The downside is it is not their income, its the corp income. so it will not apear on their personal taxes. Exceptions are sole proprietorship and single memeber LLC. But it sounds (based in the tax form mentioned) that thye are neither of those. 

I cannot remember if Discover does this but some credit apps ask if you have income other than your salary. Thats where he could have put the $45,000. I say "could" because personally for a credit card I would not. (I have for car loans, mortgages etc.) With a credit card app best thing to do is keep it simple. Because if you have to provide POI you will have to produce your business taxes. Thats a hassle beyound a 4506 form.

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well yes it technially is income, but not year after year income so purpose of CLI i would not of put it personally IRS considers it Capital gains..  So i stand corrected, but i dont think that is what discover means by income.  I think OP is still going to be in a pickle..

[Anonymous]

No it is not income, it is an asset, you just made it liquid. You lied as far as discover is concerned. If you have 200k in a 401k you cannot count that as annual income.

[Remedios]

Unless i am mistaken, they can only verify what your income was in 2018. 2019 is not available, and it wont be for a while.
If whatever you put on your last application (not CLI request) matches, you should be okay.
If you put something else on your application, then repeated it during CLI request (income + proceeds from sale), it may pose a challenge because we're not talking about a few thousands in difference.

If you're willing to provide tax info to them, just go ahead and do it, difference or not. It's the only way to try preserving those accounts anyway.

[steelers1]

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@Anonymous wrote:
No it is not income, it is an asset, you just made it liquid. You lied as far as discover is concerned. If you have 200k in a 401k you cannot count that as annual income.

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No your wrong it is income but its not his.

If appears that OP has a corporation that made a profit from selling real estate (i.e. he puchased real estate for $100,000 and sold it for $150,000 = $50,000 in net profit), so that is indeed income for the CORPORATION. 

The only way that the OP realizes any of the corporations income is either through a W2 and or a K-1 in which would flow through to his 1040 at the end of the tax year.

[Anonymous]

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@steelers1 wrote:

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@Anonymous wrote:
No it is not income, it is an asset, you just made it liquid. You lied as far as discover is concerned. If you have 200k in a 401k you cannot count that as annual income.

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No your wrong it is income but its not his.

If appears that OP has a corporation that made a profit from selling real estate (i.e. he puchased real estate for $100,000 and sold it for $150,000 = $50,000 in net profit), so that is indeed income for the CORPORATION. 

The only way that the OP realizes any of the corporations income is either through a W2 and or a K-1 in which would flow through to his 1040 at the end of the tax year.

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It is not income in the eyes of Discover and that's all that matters as related to this request. 

[JR_TX]

And so the proverbial Disco 4506-t rear its head again!

[addicted_to_credit]

I got the notice today that Miss Disco wants to delve deeper into my finances. I was one of the rare few with a new discover that was able to use the card and make payments prior to the 4506–T request. I filled it out and sent it back but all DP’s I’ve seen point to a closure. Surprisingly I’m ok with it but I’m going to play the game and see how it shakes out. You know for DP’s sake...

Other DP’s:
I was approved 10 December for a 5k SL
Score at approval was higher than mid 700’s(770ish)
Reported income was 80-120k — I cant remember if I used my income or household income

[AverageJoesCredit]

Makes me wonder if this will become the norm from them. I have nothing to hide on my taxes, im just a simpleton but ive already gave mine once to a CU and still got rejected so if asked in future ill probably just exit stage left. Credit cards are a dime a dozen and you only need 1 to swipe

[addicted_to_credit]

Me either AJC...if they do as I suspect and close the card I’ll focus on the cap1 card and grow it, I could have made some decent cash back with it but at the end of the day I asked them for credit.