Home Buying in 10705>Question Details

Lisa Huff, Home Buyer in 10705

S Corporation Officers Salaries

Asked by Lisa Huff, 10705 Tue Jan 4, 2011

We are trying to purchase a home on Martha's Vineyard (where our business is). Our corporation pays most if not all of our expenses (rent on home in MV, cell phones, utilities for home, etc.) Would it make more sense (in order to quality for a home loan) to pay ourselves a salary and pay those expenses out of our salary? Our business also rents the space it is in, should that also be paid from our salaries. This would at least show a substantial income. We tried to qualify for a mortgage, but because the corp paid the expenses and our incomes were lower because of that, we could not qualify. Bank didn't care what corp paid for only looked at our income.

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Answers

4
In most instances YES pay yourself salary and YOU pay all the expenses for yourself, till you can qualify for a mortgage THEN YOU SHOULD BE ABLE to revert back how you were org. paid

Confer with CPA

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Tue Jan 4, 2011
Your question is multi-leveled, but ultimately your goal is to buy a home. In a sense you have answered your own question. However, you must have an attorney who handles your corporation. I would sit down with that attorney and find out the best way to go for you personally and professionally. Once you've gotten an answer from your attorney, contact a qualified mortgage broker or bank. Hopefully the attorney and mortgage broker can help you achieve your goal and purchase the home. Good luck.

Barbara O'Connell
Licensed Real Estate Salesperson NYS
Margot Bennett, Inc.
914-548-1628
0 votes Thank Flag Link Tue Jan 4, 2011
Your best source of information as it relates to your specific situation, is your tax professional and or tax attorney--therefore, consider a consultation and see what works best for you....then go from there.
0 votes Thank Flag Link Tue Jan 4, 2011
This is a question for your accountant. The answer will be very specific to your expense/revenue, assets etc.

Rey Hollingsworth Falu
Licensed Associate Real Estate Broker
Houlihan Lawrence - Bronxville

Direct 917-855-0277
rhollingsworth@houlihanlawrence.com
Web Reference: http://AskRey.net
0 votes Thank Flag Link Tue Jan 4, 2011
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