re: To deduct or not to deduct, that is the question.

Ah yes, this is the issue faced by many a small business owner. They want to appear poor before the tax man, but that bites them in the rear when it comes time to borrow money to buy a house.

My first recommendation would be to, if you are not already, have a conversation with your business banker. They may be able to help you with your personal mortgage as well, and may be able to understand better your business finances and consider that when lending.

The average mortgage loan officer/broker/underwriter has no concept how to view and understand a P&L.

Obviously the issue for the lender is affordability of the mortgage. If you really, truly have those expenses, then, maybe you can't afford as much as you think you can. I assume you are not just making expenses up, but rather are playing with the line between personal and business expenses.