All Forum Posts by: Craig Bellon

Should I just file a tax amendment to correct the loss issue on the Schedule E? If so, how long until I can get a tax transcript?

Thanks Paul and Chad. If they are one time losses, why can't they be removed?

Basically, I think it'll be silly to be denied on a loan for one time Schedule E losses. I probably should never have put the losses to that extent on the Schedule E, but it was poor advice from a CPA and I wasn't considering a third purchase at the time.

My main source of income should support the third property.  I suppose this comes down to the debt to income ratio and as of today, that is very low.  Underwriting seems very grey, but I would think any reasonable underwriter would look at the income as of today.

I'd like to purchase a third home as my primary residence.  I have two other properties, (A) and (B), already rented out.  Property (A) rented out in 2014 and property (B) was rented out in August of 2016.  On my 2014 tax return, property (A) shows a $4K loss mainly due to a sump pump I installed (i.e., one time purchase). In 2015, I invested a lot of money into property (B) and my CPA said to claim the repairs/supplies on Schedule E, so I did.  All to say my loss in 2015 for property B is somewhere around $160K.

Today, both properties are making even and I have no loss. 

All other parts of my background pan out for another home purchase - solid income, job, credit etc.

My main concern is my one time loss in 2015.  I've been told that if I can show an invoice or receipts for the supplies/repairs, then an underwriter will not count the loss against me (for whatever sum I show). Is this a viable solution? I suppose I could show the sump pump receipt from 2014 for the same purpose. Is this the best way forward, or are there better ideas? Or, is there no way to overcome the loss?  I appreciate the assistance!