I’m 21 and self-employed. The past 2 years I haven’t had my business on paper, so to do that I have to file my taxes. Normally I wouldn’t hesitate, but I realized for me to qualify for a good mortgage I have to take the loss in write-offs for 2019 and 2020.
2019: I made 40k (owe the IRS 9k)
2020: I made 60k (owe the IRS 12k)
2021 I’m projected to make 80k.
My question is, is it worth it to pay up the taxes NOW and buy a property by the end of 2021 (that’s when I should have around 40k for a down payment), or should I wait a year to see if the market is potentially going to drop. If I wait a year that means I’ll most likely be able to qualify for a bigger mortgage, but it means I won’t be able to buy a property until 2022. I hear that the sooner you get into real estate the better.
Also, what are your thought on buying a home as a 21 year old to live in, NOT to rent out. I’m in Tennessee, so you can get a big house for a bang for your buck. It’s comforting knowing that I would own a home.
