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Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
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Experience:  3+ decades of varied tax industry exp. Tax Biz owner
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I made a lot more money this last year 2015, but in 2014 not

Customer Question

I made a lot more money this last year 2015, but in 2014 not even half that. Can I average the two years and pay less taxes?
JA: The Accountant will know how to help. Please tell me more so we can help you best.
Customer: If I made $75000 in 2015 but only 35000 in 2014 can I average the two and pay on that amount instead of on $75000?
JA: Is there anything else important you think the Accountant should know?
Customer: I am applying for a home loan and they are averaging the two years instead of using my income of $75000 to qualify.
JA: Our top Accountant is ready to take your case. Just pay the $5 fully refundable deposit and I'll fill the Accountant in on everything we've discussed. You can go back and forth with the Accountant until you're 100% satisfied. We guarantee it.
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.

Q: If I made $75000 in 2015 but only 35000 in 2014 can I average the two and pay on that amount instead of on $75000?

A: Income averaging went by the wayside a long time ago. You are not able to do what you ask.

As for the lender averaging two years of income, that is part of the mortgage guideline. You can refer to the following article for more detailed information regarding that matter.

http://www.creditinfocenter.com/mortgage/guidelines.shtml

Let me know if I can be of further assistance to you regarding this matter. If all is clear, a positive rating of 3 or more stars is appreciated so that I may receive credit for assisting you this evening.