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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
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My husband owns a business and our tax return reflects a

Customer Question

Hi-my husband owns a business and our tax return reflects a loss in 2014 and projected same for 2015. We currently own a home, have good to excellent credit. we'd like to sell our home and buy a new home in similar price range. Problem is that we now can't qualify for a mortgage with the new mortgage laws. I also work for the company but have not gotten a W2. We are considering filing separately with my husband reflecting the loss of the company, and reflecting the income/w2 on my return--thinking is that I can qualify for traditional financing on my own. However if we do that we would now need to pay tax on that income on my return. Do you have any thoughts, advice, anything to consider while making this decision? Thank you so much.
Submitted: 2 years ago.
Category: Tax
Expert:  Lev replied 2 years ago.

Unfortunately - there is no choice...
If because of his business loss your income is too low to qualify for mortgage - you may not afford to purchase that home.
Fo - the first step to pre-qualify for the mortgage based on your current income - considering both - W2 wages and business loss - and you will know the maximum amount of purchase price you may go.

Customer: replied 2 years ago.
This doesn't answer my question-I already know how much home we can afford. How much was charged on my cc? Only the $5 is authorized.
Expert:  Lev replied 2 years ago.

you may file separately - that is your choice - and you are correct - most likely - your combined tax liability will be higher - that is because business losses would not offset your wages and some deductions and credits would not be available with that filing status. Also tax rates are lower for those filing separately compare to filing jointly.
You may however later amend your tax return and change your filing status to MFJ - married filing jointly. As that change will result additional refund - you would have three years to claim such refund.

Expert:  Lev replied 2 years ago.

Please be aware that experts do not have access your your account.
So all question regarding charges - please direct to the customer service.
I personally simply do not know anything about your charges.