How Taxes Can Kill Your Real Estate Dreams


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When taxes kill your real estate transaction, it’s not always your accountant’s fault. Usually, it has to do with your accountant knowing the IRS’s guidelines, but not the bank’s guidelines. If you’ve been thinking about buying a home in the next few years, your accountant isn’t going to know until you tell them. They are trying to do their job, which is to save you money.

Now, on our tax team, we double check with all our clients to make sure if they plan on making any big purchases in the next few years, we account for that. That’s the type of conversation you need to have with your accountant regardless of who it is.

If you’re sitting down with your accountant in the hopes of saving money on your taxes, you might want to re-think that. Don’t write off so many un-reimbursed expenses, those can be deal killers. If you have a W-2 income of $80,000 and your accountant goes and documents $20,000 worth of un-reimbursed expenses, those bring down your income availability on getting a mortgage. When you want to get a mortgage, we then can only use $60,000 to qualify you, not the full $80,000 you actually made.

Kevin Jimeno PQ.4.18.16

You’re either going to pay the piper with regards to your taxes, or with your mortgage affordability. If you want to save on your taxes, realize that it’s going to affect and limit the amount of money you can borrow on a mortgage.

We would love to work with your accountant to discuss some ways in which we can find a happy medium. When it comes to things like business mileage. We can add a certain percentage back into your income. If we are all on the same page and talking to each other before you file your taxes, you can both save on them and successfully qualify for the amount you deserve on a mortgage.
If you have any questions for us, give us a call or send us an email. We look forward to hearing from you!

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