FHA and business Expences

Don’t overlook expense accounts and auto allowance for potential income. Here is what you need to look for:

– The income is only the amount that exceeds the expense.

– For expenses refer to Form 2106, from the IRS 1040 Form for the last 2 yrs.

– Verify from employer that the payment will continue for 3 years.

• Verification can be via a letter on company letterhead

• When there is a loss, this must be counted as a debt.

– Depreciation may be added back