I try to pay as many bills as possioble through my corporation in order to have all of it written off and i know that its a good thing. BUT how do you show proof of high income when you try to buy a house or a car and you can't show high personal income because all your bills are paid through the company and you dont need to write yourself high paychecks. Anyone knows what can i do?
2007-07-19 18:57:23 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I went with Countrywide mtg 2 years ago to buy our home for $400,000 and we used "stated income " for small business owners . I stated my income as $12,000 per month but it actually only around $10,000.
Six months ago I leased a $52,000 BMW with 0 down by stating my monthly income as $15,000 and (it was actually closer to $17-18 so now were even.)
My credit is around 720 so they just take my word for it.
2007-07-19 19:10:56 · answer #1 · answered by Sin nombre 6 · 0⤊ 0⤋
If you are paying personal bills through your corporation, you are doing so illegally and are subject to serious consequences from the IRS. That's illegal, as you should already know. Only bills for business expenses may be paid by your corporation.
What you could do is see a good CPA and get your past filings straightened out - this could cost you a lot of money in back taxes and penalties, but it won't be any less if you wait until the IRS catches up to you, then it will be even worse. If you already have a CPA who is condoning what you've been doing, get a new one, since that one is just helping you get into trouble later.
In the meantime, now you're paying a small part of the price for evading taxes by not being able to get the house financing that you'd like, and could probably qualify for if you'd played it straight in the first place with your taxes.
2007-07-20 09:26:09 · answer #2 · answered by Judy 7 · 2⤊ 0⤋
If you are paying your personal expenses (groceries, clothing, automobile) through a corporation, you won't have to worry about buying a house or car in the future as all housing and transportation will be provided by the Federal Government. You also get a brand new orange jumpsuit to wear.
2007-07-20 08:49:28 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
dont commit fraud
2007-07-20 04:27:18 · answer #4 · answered by blktan23 3 · 0⤊ 1⤋