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

quote:

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but that person would have to pay taxes on that income

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I do not disagree with that at all.

I just believe it is fraudulent to report that information to the bank in order to qualify for a loan.

That being said, the loan officer needs to be smart enough to dig through the Schedule C to make sure everything makes sense. If it doesn't make sense, ask for more information.




ETA: I am NOT accusing the OP of doing this. The way I read his post, that's what I assumed he was trying to do. But we may not be on the same page.