Should I take the tax deductions or claim the income?

[Dave Mosher]

I am closing on my first SFR on December 20th. Financing has gone great with no problems. I went through a local bank, who offers portfolio products. I was talking yesterday about what I would need in order to purchase again in the future. I own 2 businesses, one of which is a small farm that I took a $10k loss on last year. I figured this was good because of the tax sabings. Now because of this loss it is hurting my ability to get future loans because of the debt to income. I currently own my home with about $50k in equity, plus 8 acres of raw farmland with $30k in equity. So this SFR is my 3rd mortgage. I can't take a HELOC on the land because it is land. Should I show a profit on the farm, pay the taxes and be able to qualify for more loans or go with a HML? Thanks for the advice,

[Basit Siddiqi]

@Dave Mosher

You should not lie on a tax return in hopes of qualifying for a larger loan/mortgage. Doing so may be considered mortgage fraud.

You may want to consider being less aggressive on expenses relating to your farm business by doing things such as taking regular depreciation instead of bonus depreciation/section 179 expense if applicable.