I am self employed and my business has a gross income of $240k. After expenses and before taxes the profit is around $150,000 taking the bare minimim in write offs. My wife works for me now so this is our only source of income. I filed an extension for my taxes and am wondering what number the morgage officers look at, is it income before expenses or after all write offs? The max write offs will make around a $10k difference in taxes I pay but it makes our net drop down to around $90k. I have vehicle depreciation that is the biggest write off as I put on about 100k miles a year on my 2 trucks and can right off about .52 a mile, that adds up to a huge deduction but also subtracts from our net income on paper. We plan on applying for a morgage in 2013 so the 2011 taxes are the first of the 2 years that I know are looked at and I don't want to mess this up. I didn't plan well for my taxes, 2012 I'll be prepared better to show a lot more money but right now, I'm walking the fine line and the write offs will be huge.
Any input would be much appreciated.
