We are in process of getting preapproval for a house. One thing that came up was that in 2016 I took a ton of home office deductions that lowered my income on my taxes. Long story short: LO said just write a letter explaining that at that time I had a different position which required travel, that I did taxes on my own (dumb turbo) , and mistakenly took these deductions ( which IRS actually disallowed ) but now in 2017 my job doesn’t require any kind of expenses and I’m strictly a W2 earner and my 2017 taxes reflect most accurate income for present and future. Any idea on how best to write this letter ? It will be a key factor. TIA!
