If you're self-employed, you're probably wondering how your income will be determined if you are looking at mortgage options for a new home or a refinance. Let's take a look at other types of income mortgage investors guidelines. They start by explaining that they want to see income that is stable and likely to continue. This example is Fannie Mae's policy. When you own a business, you have your expenses that are real costs and then you have expenses that are for taxable purposes. Not all tax deductions are considered losses. For example, you don't make a payment out of your cash flow during the year for depreciation or for carryover losses from a prior year. So, we add these back to our cash flow. Now, in some cases, it does take a trained eye to locate all the eligible items that we can add back to the taxable income. But we have some tools that help make it easier to find. This is a common tool used to evaluate self-employed income. It tells you exactly where to go on your tax return to find the information needed to complete the calculation. Whether you file your income as a sole proprietor, a partnership, or an LLC, underwriters and auditors know where to look because they use the same methods for cash flow analysis. This is particularly helpful when you're planning ahead and preparing to buy a home in the future. Now you know what expenses and tax deductions will impact your ability to buy. Just let us know if you have questions and we'll help you figure out what other paperwork you'll need in order for a future underwriter to understand your circumstances.