Write off repairs or keep my profit high for loan limit purposes?

[Nicholas Zeiler]

I have a duplex that I live in one side with roommates and rent out the other. I want to buy another property in 2019 and am looking in a more expensive area of town.

To be approved for a higher mortgage amount by a bank I need to show as much profit as possible on my tax returns. Writing off the repairs I made this year ($15k for new roof, gutters, bathroom remodel, etc) will wipe out almost all the "profit" from my duplex and affect my loan approval amount.

Should I bite the bullet and not claim any losses and pay full taxes? Or write off everything I can?

Another option I have is to write off everything I can, but then pay off my car loan with the money I would have paid in taxes. This will reduce my monthly loan payments by $200 which will help a little in mortgage approval limit. Kind of a middle ground. Still benefiting me more than paying taxes but takes a chunk of $$ out of the bank.

Let me know what you think all input is appreciated.