irs: Form 1098 and Your Mortgage Interest Statement
- 01/09/20 08:46 PM
Form 1098 and Your Mortgage Interest Statement
"At first you go bankrupt slowly, and then all at once." This quote has been attributed to Ernest Hemingway, Mark Twain and even F. Scott Fitzgerald. Indeed, it's a great one, though fortunately I cannot personally attest to its veracity. Nevertheless, it does touch on a concept I want to cover at a particular time of year --- from about mid-January to the end of February. It is during these weeks that most of us gradually give up our moorings to the previous year and then suddenly realize that we need to start planning to file … (1 comments)
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irs: Can You Get a Mortgage with an ITIN?
- 01/30/19 07:20 AM
Can You Get a Mortgage with an ITIN?
The fact is, despite a very hotly contested immigration debate today in our nation, there are likely several million people in the United States who do not have a Social Security number (SSN), but pay billions in taxes every year. These individuals might be non-resident foreign nationals who receive taxable income from a US business. Or they may be dependents or spouses of citizens or permanent residents (green card holders) or foreign nationals on work visas. But if they earn income here, how would they file a tax return without an SSN, you might ask? … (0 comments)
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irs: The Impact of a Government Shutdown on the Mortgage Process
- 12/27/18 08:23 AM
The Impact of a Government Shutdown on the Mortgage Process
If you are a Federal worker, then you don't need to hear it from me. Dealing with the government shut down interjects uncertainty into your life and can cause financial stress. If it's any consolation, the same holds true for the mortgage process. When those who are buying a home have their transaction caught in the middle of a political tug-of-war, timelines can get fuzzy, stress levels can get high and dominoes for sellers and buyers can fall. Where possible, we do all we can to "get in front" of a shutdown … (30 comments)
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irs: The Most Wonderful Time of the Year (to Get Gift Funds)
- 12/16/18 08:59 PM
The Most Wonderful Time of the Year (to Get Gift Funds)
It's that time of year again when holiday gift giving is on everyone's mind. But you know me, compulsive mortgage professional, I want to focus on but a single aspect of the loan process --- gift funds--- this same form of largesse that is received by a fortunate few and for the purpose of purchasing a home. As we go into the holiday season, I want us all to keep in mind that right behind Santa's sleigh is Auld Lang Syne. And when we're talking tax implications for gift funds, this can matter.
For 2019, the IRS annual … (2 comments)
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irs: No Tax Returns, No Cry
- 07/22/18 12:20 PM
No Tax Returns, No Cry
While it never rivaled in popularity its sister reggae tune of genre-defining, historic significance, let's dust off this platter and give it a spin. Because let's face it, in the fully-documented world of today's mortgage qualifications it would seem that if you're self-employed, or if you're a real estate agent who gets a 1099, you pretty much have to shoot the sheriff if you want to get a decent loan but don't have two, strong years of tax returns. No more.
Our bank statement program may allow you to qualify with just 12 months of business bank statements. … (6 comments)
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irs: I'm from the IRS and I'm Here to Help...
- 07/06/18 12:25 PM
I'm from the IRS and I'm Here to Help...
Yes, that's right. The Internal Revenue Service wants to ride in like a knight in shining armor and help some of you close your home loans. Will you be the lucky beneficiary? Let's take a look at what, on the surface, seems to be "mission impossible." The IRS is only there to impede, to take from us and to delay, right? Not always.
From time to time, there are situations where a borrower is in the mortgage process and has both the down payment requirement and a Federal tax obligation. And, as you might … (22 comments)
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irs: 1031 Exchange Jumbo Mortgage
- 03/13/18 08:17 AM
1031 Exchange Jumbo Mortgage
If, indeed, there are two certainties in life, death and taxes, then real estate investors just might have found their Juan Ponce de Leon in the 1031 exchange, which allows them to defer capital gains taxes on the sale of a rental property so long as they reinvest the proceeds in a "like-kind" purchase. Spared the death of writing a large check to the IRS, they can find the fountain of youth in a new investment --- always with the proceeds of the previous sale and sometimes with the addition of a new jumbo mortgage. Since our fabled 1031 … (1 comments)
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irs: It's 2018. Will I Lose My Tax Deduction if I Refi?
- 12/31/17 07:02 AM
It's 2018. Will I Lose My Tax Deduction if I Refi?
If you're asking this question, I'm going to go out on a limb and say you're experiencing some anxiety right about now. But no matter how bad it gets, realize things could always be worse. You could be the Internal Revenue Service and tasked on a couple weeks' notice with retooling your shop to both comprehend and implement the Tax Cuts and Jobs Act. So whether you're a homeowner, a CPA, a Californian, an IRS employee or a blue state Democrat, let's wash down a couple of Xanax with a strong martini … (22 comments)
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irs: Fruitcakes, French Hens, Furs or (Gift) Funds?
- 12/05/17 05:59 PM
Fruitcakes, French Hens, Furs or (Gift) Funds?
It's that time of year again when holiday gift giving is on everyone's mind. But you know me, compulsive mortgage professional, I want to focus on but a single aspect of the loan process --- gift funds --- this same form of largesse that is received by a fortunate few for the purchase of a home. As we go into the holiday season, I want us all to keep in mind that right behind Santa's sleigh is Auld Lang Syne. And when we're talking tax implications for gift funds, this can matter.
Now next year, 2018, all bets … (4 comments)
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irs: Don't Get Tricked by the 4506
- 10/24/17 08:54 PM
Don't Get Tricked by the 4506
What better time of year than Halloween to talk about being tricked? One of the ways unsuspecting borrowers can fall prey to one of the worst tricks in the mortgage business is to run into issues with IRS Form 4506T. This form, which can be found HERE, allows a third party, such as a mortgage lender, to request a transcript of your tax return.
And request it we will! Any time we have a "fully documented" loan, which is the vast majority of cases, we'll make sure that what the borrower shows us on his tax returns is the same … (19 comments)
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irs: 'Tis the Season for Gifts (and Gift Funds)
- 12/04/16 07:43 AM
'Tis the Season for Gifts (and Gift Funds)
As we come to the end of the year, we, here in Marin County, CA, tend to notice that purchase and sale activity can slip into "holiday mode" even if the weather outside is not particularly frightening. There's
not much inventory available for buyers to pick over --- and here in 2016 that implies an already slim market --- and sellers are reluctant to list a home for fear it will sit through Thanksgiving and Christmas and then appear "stale" come the New Year. In short, despite mistletoe, spiked egg nog and holiday cheer it … (5 comments)
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irs: "Can I Use My 2013 Tax Return to Qualify for a Mortgage?"
- 02/24/14 10:02 AM
"Can I Use My 2013 Tax Return to Qualify for a Mortgage?"
Q: I'm self-employed. Can I use the income I will show on my 2013 tax return to qualify for a mortgage? I have not yet filed, but am about to do so...
Like most other things in the lending industry, the answer is not entirely simple and is cloaked in a bit of mystery. But let's review the basics before we jump into the "need to knows." As they say, "timing is everything," and indeed we find ourselves at the time of year when most are in … (0 comments)
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Form 1098 and Your Mortgage Interest Statement
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