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Income verification for personal loans

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rated:
I am a sole proprietor with gross income of about $140k last year, and on track for $200k this year.

I have a crazy amount of write-offs and business related expenses, including credit card interest deductions, so my net income last year was only $57k.  

Will this kill my chance to get approved for any personal loans because my income will be considered $57k instead of $140k?

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rated:
What do you mean by "personal loans"? Also, how long have you been engaged in this business?

BTW -- Your income was either $57K, or you engaged in tax fraud.

rated:
What I mean is I want to apply for a personal loan to refinance credit card debt incurred while starting my business. The business has been around for 3 years, and last year was the first year I was doing it full time without a day job. And sorry, I should have said "gross revenue" or "gross receipts" of $140k and net income of $57k.

And no - I engaged in perfectly legal business deductions, thank you very much =)

But - you didn't answer my question! Which number do I use when applying for personal loans?

rated:
want2bedebtfree said:   What I mean is I want to apply for a personal loan to refinance credit card debt incurred while starting my business. The business has been around for 3 years, and last year was the first year I was doing it full time without a day job. And sorry, I should have said "gross revenue" or "gross receipts" of $140k and net income of $57k.

And no - I engaged in perfectly legal business deductions, thank you very much =)

But - you didn't answer my question! Which number do I use when applying for personal loans?

  First, they're not called deductions; they are expenses.

From my observations, you may be able to get business credit after having been in business for at least one year.

rated:
So, your Schedule C income was $57k, but you'd rather a lender pretend it was $140k?
About the best you can hope for is a manual review that adjusts income to come up with cash flow, to get a rough idea where that might put you, add back your depreciation to the $57k figure.

rated:
so you took expenses of all your credit card charges, but didn't pay the cards. Now you want someone to lend you money on every dollar you took in without considering that you haven't paid off what you wrote off.. is that accurate?

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To be clear, for any questions about your "income", the truthful answer is $57k.

Your gross revenue doesn't have much to do with anything - you couldn't use any of that money you spent on business expenses toward anything else, so it's not relevant in your creditworthiness or anything else.

rated:
When my mortgage officer looks at my schedule E to determine my rental income, the only expenses he adds back is the depreciation. Everything else subtracts from the gross rents.
And sorry, I should have said "gross revenue" or "gross receipts" of $140k and net income of $57k.  Which number do I use when applying for personal loans?
I have mortgage payments on my credit report so using net income when applying for credit cards screws everything up as the CC app , unlike mortgage officer, doesn't ask for 1040 much less schedule E. So in that case, I fudge a little and give my gross rents.

If you have any expenses that show up on your credit report, I would not include those when calculating net income.

tldr; more expenses lowers your tax payment, but makes your income look low for loans

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