mercer transportation

Yes but for home loans they won't add that back in to ur income. so lets say ur income is 80k but u got 10k in per diem. Your income is only 70k

 

You only made $17k.... It's not their formula, it's what you netted, regardless of the fact that $32k of your gross was a truck lease payment or depreciation.
I can somewhat understand the per diem argument, but IRS states that per diem is essentially a reimbursement so it's not considered income.
Fair tax today...

 

Last house I bought the bank told me I didn't show enough money to put light bulbs in the house. Kinda pissed me off. Lol. I told them if my mortgage man was as good as my tax lady then we won't have a problem. That didn't work.
Ended up jumping through some hoops and putting more cash down than most. Cash worked.

 

It's no different than if you were a company driver pulling in $100k, but you had a car, motorcycle, student loan, huge credit cards payments.....its all about your debt to income ratio.

 

The difference would be if he had a LLC in which the truck was under that name, him being an employee of the company. Correct?

 

Yes and no.... You still have to met the same financial requirements.
I don't understand why most o/o don't file as an Scorp.... Pay yourself a salary, and only pay social security and Medicare on that portion of your salary.

 

Ya, I have LLC and run it through Scorp

 

Incorrect sir.... it's their formula. Read what I said again. They subtract the truck payment twice due to their formula.

 

They look at your taxable income.... which is after business expenses, which in my case was including a lease I was paying $30k+/year... then they see that it's on my credit report so they deduct it again as additional debt in the debt to income ratio without taking into account it was already deducted once as a business expense. It's their formula.... my net was close to $50k AFTER expenses, hence it's a net... they looked at it as $17k because of debt to income ratio against the $50k with the truck payment still needing to be counted.

 

Then you were dealing with a very poor writer.