I would appreciate your feedback, to see if I've pulled the trigger too soon.
696 - TransUnion Fico 4
670 - Experian Fico 2
659 - Equifax Fico 5
Self-employed - Same line of work, CPA incorporated to save self-employment tax.
2018 $10k net profit (schedule C / sole prop)
2019 S-Corp $20k w2 + $69.7k profit share/K1/schedule E
Purchase Price: $482k
Loan Amount: $462,720
3.75 / 4.796
Received another quote for 3.125, I'll rate shop in a bit but that isn't my main concern. My concern is income. I want to use 2018 & 2019 returns. CPA is waiting on a few more documents from brokerages and then will be filing for 2019 business & personal ASAP. He is able to provide cpa letter for 2019 P&L. The bank that preapproved is asking for 2017 & 2018 returns. Will there be any issue (outside of time) using this same approval that is good for 90 days and submitting 2018 & 2019 returns?
Also, how is that increase in self-employment income treated? Is it averaged or?
Finally, are there any issues with self-employment returns being on Schedule C one year and Schedule E the second year for the same business just different means of filing tax for the two year requirement?
I appreciate your time & feedback.
I would make sure they will accept your CPA letter. We're doing the same for 2019 taxes already filed but the LO wanted the 4506T form for transcripts from the IRS for 2019. We will have to wait for those maybe as late as May unless we can get them expedited by the Tax Advocate which we can't do until the IRS has accepted the return.