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Justinp
04-07-2011, 01:26 PM
How do yall prove your income? For instance you want to get a new truck and you need proof of income. Do yall just show deposits into your bank account, last years W2? Who has software to produce your own pay check stub? What is it? How do you figure what amount taxes are to show the net income? Thanks

Sole Proprietorship.

PROCUT1
04-07-2011, 01:38 PM
I highly recommend you get an accountant to start otherwise you will find yourself in trouble fast.

Yes, you use either w-2 if youre a corporation, and/or tax returns as a sole prop.

JB1
04-07-2011, 04:03 PM
usually show tax return.

Justinp
04-07-2011, 04:15 PM
Ya, but doing that is a bit deceiving if you having a bad year or if your just starting out. I have used my bank account with no issue to buy a car, but if it came down to something important like a house im sure they will get picky.

zturncutter
04-07-2011, 04:35 PM
I highly recommend you get an accountant to start otherwise you will find yourself in trouble fast.

Yes, you use either w-2 if youre a corporation, and/or tax returns as a sole prop.

I think he just might be already in trouble :laugh:

AI Inc
04-07-2011, 04:42 PM
Ya, but doing that is a bit deceiving if you having a bad year or if your just starting out. I have used my bank account with no issue to buy a car, but if it came down to something important like a house im sure they will get picky.

Their not picky, they just want documentation.

Justinp
04-07-2011, 04:47 PM
Their not picky, they just want documentation.

Maybe, but you could be a drug dealer that likes to deposit money in the checking account for all they know lol.

Flatop
04-07-2011, 07:00 PM
usually show tax return.

I second the tax return. I went shopping for some liability insurance (see if anyone can beat previous insurance rate) and the first thing they asked me was my tax return for my business. My premium depended on my income from last years tax return.

DeereHauler
04-07-2011, 07:48 PM
Ya, but doing that is a bit deceiving if you having a bad year or if your just starting out.

Haha.....Welcome to the world of owning a small business!

shade tree landscaping
04-08-2011, 07:50 PM
if your paying yourself and employees, just show your stub...if your working alone and not drawing a paycheck last yrs tax return (1049 I belive, could be wrong) will show you as a business. W-2 is you as a person...again I could be wrong so don't hold me to the tax documents! I'm not an accountant....but he is worth every penny! Find you you like and he will be worth his weight in gold!

stuffdeer
04-08-2011, 08:46 PM
Tax Return.

GreenI.A.
04-08-2011, 10:56 PM
but if it came down to something important like a house im sure they will get picky.

or just get a time machine and go back 3 years, pretty sure you could fill a credit app out with crayon and still get aproved.

I used tax returns when I bought my last truck.

spray_man
04-09-2011, 09:45 AM
Remember way back when you didn't have to prove you income to get a loan -a big loan - a really, really, big loan? What year was that? Humm . . . . lets see . . . . was that the eighteen hundreds . . no . . the nineteen hundreds . . . No wait a minute, that was early 2006 I wanted to pull a little equity out of my house. The gentleman on the phone said, I could borrow up to 100 % on the equity, without proof of income. He said some people in California where getting 125% of their equity. I waited a little bit, to think about it. I called the guy a year later, and wow! the bank had been sold, and the man was no longer there.

WheatBookkeeping
04-21-2011, 04:11 PM
The short answer to your question, “. . . how do you show income?”, is:

You, primarily, show income on your Income Statement, also known as a Profit and Loss Statement. The purpose of the statement is to show how much money was brought in and how much money was paid out for a given period of time.

Supporting tax returns are also a good indication of your earnings for an entire year. They will also show any tax obligations due.

The long answer (which is more to your points) is:
You want a lender to finance your truck purchase, so they are going to want to know why you need it. Have some good reasons in mind in case they ask. The lender should have no heartburn with your motives.

They may want to know who you plan to buy the truck from.

They’ll want to know to whom you owe money to and how much.

They’ll want to know who owes you money and how much.

They’ll want to know your plan for repaying them.

They’ll want to see your bank statements.

They’ll want some background information on you personally and your business activities. Tell them about your clients and the volume of business you do.

Be ready to show the lender(s) your financial statements that have been derived from your company books. Lender(s) are impressed when you can show them up-to-date, well organized books that will easily depict your accounts payable, accounts receivable, cash flow and profits. They’ll want to see your assets so they can feel comfortable that you have the capacity to service additional debt.

If your financial health is depicted clearly and accurately, and it is determined that you have enough income, you can be confident in the fact that you’ll get your loan.

Mark Oomkes
04-21-2011, 05:35 PM
The short answer to your question, “. . . how do you show income?”, is:

You, primarily, show income on your Income Statement, also known as a Profit and Loss Statement. The purpose of the statement is to show how much money was brought in and how much money was paid out for a given period of time.

Supporting tax returns are also a good indication of your earnings for an entire year. They will also show any tax obligations due.

The long answer (which is more to your points) is:
You want a lender to finance your truck purchase, so they are going to want to know why you need it. Have some good reasons in mind in case they ask. The lender should have no heartburn with your motives.

They may want to know who you plan to buy the truck from.

They’ll want to know to whom you owe money to and how much.

They’ll want to know who owes you money and how much.

They’ll want to know your plan for repaying them.

They’ll want to see your bank statements.

They’ll want some background information on you personally and your business activities. Tell them about your clients and the volume of business you do.

Be ready to show the lender(s) your financial statements that have been derived from your company books. Lender(s) are impressed when you can show them up-to-date, well organized books that will easily depict your accounts payable, accounts receivable, cash flow and profits. They’ll want to see your assets so they can feel comfortable that you have the capacity to service additional debt.

If your financial health is depicted clearly and accurately, and it is determined that you have enough income, you can be confident in the fact that you’ll get your loan.

That sounds like work. Almost like you're trying to be a business or something like that.

Much easier to show a bank statement.

jsslawncare
04-21-2011, 08:21 PM
What? Taxes? oh no.