4 ms·

Just to cover a few basic principles here - 1 - you should weigh the tax implications of a personal car vs business leased vs business owned car 2 - if you ma

Just to cover a few basic principles here - 1 - you should weigh the tax implications of a personal car vs business leased vs business owned car 2 - if you manage to convert all of your personal expenses to business expenses and lower your salary to lower your personal taxes (which may not matter depending on the corporate entity you created in the first place) then you need to realize when you go for a credit check all anyone will care about is your salary, not your business income. So let's say I'm self employed as an hourly contractor and bill @ $150/hr, but I pay myself a 'lowly' $30/hr to dodge taxes. The mortgage company only cares about that $30/hr and may not loan me anything. (also, if you start a business you need to be solid for two years before anyone will loan you anything for the most part, just fyi) 3 - you can claim a portion of rent/mortgage/etc as a business expense if you have a legitimate home office or conduct business of some sort in it.

randomdata 13y ago
> The mortgage company only cares about that $30/hr That's not true in my experience. When I was looking for a mortgage a few years back, the lender was practically throwing money at me once I presented my business financials. Perhaps it depends on who you are dealing with?
- stevehawk 13y ago
  I wouldn't be surprised if this is a thing that's changed in the last few years just to try and lend money again after the housing collapse.
primitivesuave 13y ago
> you can claim a portion of rent/mortgage/etc as a business expense if you have a legitimate home office or conduct business of some sort in it. One thing to point out about this - if you use the space for any purpose other than for your business, it doesn't count as a home office. Additionally, you cannot claim shared utilities like phone lines and Internet as a business expense unless they are for exclusive use in the home office space.

randomdata 13y ago

> The mortgage company only cares about that $30/hr That's not true in my experience. When I was looking for a mortgage a few years back, the lender was practically throwing money at me once I presented my business financials. Perhaps it depends on who you are dealing with?

stevehawk 13y ago
I wouldn't be surprised if this is a thing that's changed in the last few years just to try and lend money again after the housing collapse.

primitivesuave 13y ago

> you can claim a portion of rent/mortgage/etc as a business expense if you have a legitimate home office or conduct business of some sort in it. One thing to point out about this - if you use the space for any purpose other than for your business, it doesn't count as a home office. Additionally, you cannot claim shared utilities like phone lines and Internet as a business expense unless they are for exclusive use in the home office space.