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Author: mfholland Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127809  
Subject: Lender requests change in 2001 Taxes Date: 3/17/2001 8:58 PM
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I've got an unusual situation. It's home loan related, but may be geared to you accountant types out there, as well.

I'm in the process of purchasing my first home. After I brought all the income verification paperwork in to the lender, they pointed out something and made an unusual request.

My 1999 taxes reflected a business loss of $X amount -- for a business outside of my 9-5 job. This essentially reduced my 1999 income by $X amount...understood. But the lender suggested the following fix for this: show $X amount of depreciated business equipment for my 2000 taxes.

My question...from an accounting point-of-view, what does this truly accomplish? I'm somewhat skeptical becuase, hey...they specialize in lending money, right?...not tax strategies. So is the lender asking me to do something foolish or....

Any insight into this quandry would be appreciated, as I'm in the middle of purchasing the home, and don't want to risk the purchase (or my future tax well-being) !


Thanks for your time....and I've gained much knowledge and entertainment from this message board over the past few months!

-=Malinda=-
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