How can I claim income on a new Business for refinance purposes?
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I want to refinance my house, but I bought a business in Jan 2009.
Banks don't accept income for two years on new businesses. Any way I can show income from the business for a W2? As a Draw or as Manager?
Answer
A draw does not count as income. A W-2 will only help for previous years. As this point your only option would be to have an independent accountant produce a reviewed financial statement. I would check with the bank to see if this would be acceptable before you start because it will be expensive.
Marc Barnes
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Answer
Depends on what condition the information is in when it comes in. I would guess at 15 - 20 hours of billable time. Our rate is $160 per hour. I would imagine that if they wanted review financials, they would want the most current month.
If it is not until next year, the bank may be able to use your 2009 tax return as evidence.
Marc Barnes
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Comment
thank you for your information. I will check into it. How expensive? I plan on applying for the refinance next August, and I wanted to see what I could do to in the meantime. It would be worth the cost, (?), for the benefit it would give me. Could you estimate the cost? Thanks again, Mpetrchilli