Hello, I'm back with another question on this. I went to a lender for a VA loan after doing taxes. I have a Schedule C for Self-Employed. I had to file Form 4652 (Depreciation Form) because I took a Section 179 deduction for some other property.
Pursuant to Section IV of the Schedule C (where the business mileage deduction is usually calculated) it states (and in the instructions) if Form 4652 is filed for any reason, the miles must be calculated and listed there on Form 4652, then flow back into Line 9 car and truck expense standard milieage rate. So, the business miles are listed on Part V of the Form 4562, which then flows back to the Schedule C, Line 9 car and truck expenses at the .56 per mile rate.
Now this lender says that the depreciation amount of the miles for 2014 (.22 cents) can't be added back because the miles weren't calculated on IV of the Form C, but on the Form 4652. Now they say I can't pre-approve for the loan pursuant to Fannie Mae guidelines. The underwriter apparently called FNMA and was also told no add back for the miles depreciation unless miles are listed on Schedule C, Part IV. So now I don't meet the income levels for the loan.
I looked elsewhere online and it appears other lenders do although the add back for business miles depreciation, even if listed on Form 4652.
Help! I have a house I'm waiting to put an offer in on and this is the only issue apparently holding up the pre-approval.
