How to Calculate DTI with Schedule E

[David Cherkowsky]

Hi All,

I purchased an investment property in the middle of last year and to this point have been using 0.75*lease value in my DTI calculation. I have just received a draft of my tax return with the schedule E. I'm wondering how rental income is now calculated. I have heard the value from the schedule E is used (rather than 75% of lease). Can someone explain how the calculation works?

Thank you.

[Jay Hurst]

Quote from @David Cherkowsky:

Hi All,

I purchased an investment property in the middle of last year and to this point have been using 0.75*lease value in my DTI calculation. I have just received a draft of my tax return with the schedule E. I'm wondering how rental income is now calculated. I have heard the value from the schedule E is used (rather than 75% of lease). Can someone explain how the calculation works?

Thank you.

 @David Cherkowsky    This form is used:  https://content.enactmi.com/documents/calculators/Form1038.C...    This is what I recreated for you the other day.