Schedule E tax question

[Aaron Murphy]

I am looking for some help to clarify the way that income reported on my taxes will affect my debt to income ratio?

It is my goal to minimize my income as much as possible using legitimate  expenses and depreciation etc. However I think I may be confused about how my lender will view that when they decide my debt to income ratio for future loans.

If I report a net loss from an income perspective will my lender interpret that negatively or will they utilize the reported rents as the offset to help my debt to income ratio?

for example if I earn 15k in rents in a year but show a net loss of income of -2k will my lender use the 15k in rents as a positive for my debt to income or will they use the net number and use that house to decrease my borrowing power?

[Natalie Kolodij]

@Chris Mason might be able to help. 

I know many lenders adjust taxable income/loss when they're doing underwriting