BrandonT
Well-known member
Getting a mortgage -- "add backs" on taxes from video production equipment/ expenses
Hey folks! I'm in the early process of seeing if I can qualify for a home loan. 80% of my income is from video production (freelance and for-client); 20% is from a position at a university as a W2 employee.
For self employed borrowers, they look at 2 years of tax returns. My income in 2016 was really good. 2015 wasn't so great. Especially after deductions. I've been doing this since 2010. Still working on taxes for 2016 and deciding if I want to take all of my deductions.
For anyone who has been through this process, I'd like to know what you can tell me about "add backs" with video production gear/ expenses. This is where you can add expenses back to your adjusted gross income from your tax records. So that the number that the lender calculates from will be higher than what your tax says your income was (after deductions). What qualifies (in this line of work)? Is it 100% of the amount?
In 2015, I bought a C100 Mark II, a Canon 70 - 200 F2.8 II, and another lens, which totaled to about $8500. On top of other expenses and gear. Would they add 100% of the camera gear back?
I also read that they could add up to $6,000 for car expenses.
I do plan to talk to my lender about all of this. But I wanted to look into all of this before sitting down with them and hoped some of you would have insight. Any other advice is welcome.
Thanks!
Hey folks! I'm in the early process of seeing if I can qualify for a home loan. 80% of my income is from video production (freelance and for-client); 20% is from a position at a university as a W2 employee.
For self employed borrowers, they look at 2 years of tax returns. My income in 2016 was really good. 2015 wasn't so great. Especially after deductions. I've been doing this since 2010. Still working on taxes for 2016 and deciding if I want to take all of my deductions.
For anyone who has been through this process, I'd like to know what you can tell me about "add backs" with video production gear/ expenses. This is where you can add expenses back to your adjusted gross income from your tax records. So that the number that the lender calculates from will be higher than what your tax says your income was (after deductions). What qualifies (in this line of work)? Is it 100% of the amount?
In 2015, I bought a C100 Mark II, a Canon 70 - 200 F2.8 II, and another lens, which totaled to about $8500. On top of other expenses and gear. Would they add 100% of the camera gear back?
I also read that they could add up to $6,000 for car expenses.
I do plan to talk to my lender about all of this. But I wanted to look into all of this before sitting down with them and hoped some of you would have insight. Any other advice is welcome.
Thanks!