Hi there - looking for thoughts on getting a loan using an arts grant as business income. I am trying to buy a house that I am very keen on and would give me all kinds of business opportunities, as well as a great place to live. I have spent the past week with a mortgage broker, getting my paperwork in order and waiting for my accountant to do a tax return. I have one years tax return only as the previous year I was studying and with a small child at home and had no business income.
I had great hopes of a full doc loan with a bank that requires only one tax return, but it hinged on my business income (freelance writer), which for the last year was almost completely a $25000 arts grant. Both the broker and I assumed this would have been included as business income by my accountant, but it wasn't. The grant was for writing the second draft of a book. I had to have a pretty impressive portfolio of published work to even be eligible to apply, so to my mind, it is writing income. But my accountant's paperwork shows a $400 loss to my business and the grant is in a separate category. My broker thinks this will not be acceptable to the bank. (I do have rental income and tax free income as well). I was thinking about trying for bridging finance and have just spent some hours trawling through the gallons of information on this site and it appears to be a risky venture, committing to selling a house in under 6 months (although all the agents I've spoken to believe it will sell within 3 months). Anything else I can do, or a way I can present my case favourably to the bank? I have signed the accountants paperwork and it has been electronically lodged. I don't think he has done me any favours, but perhaps this is the rule for grants? I did call a couple of accountants from the phone book and they seemed to think the grant would be classed as income, but were not sure. I will not have the assessment notice until after the auction. I have no bas statements or GST registration for a low doc loan.
I have made an appointment with the bank - thought it was worth a shot? Any thoughts? Wasting my time or is there a way through? I'd appreciate any advice or comments, thanks.
I had great hopes of a full doc loan with a bank that requires only one tax return, but it hinged on my business income (freelance writer), which for the last year was almost completely a $25000 arts grant. Both the broker and I assumed this would have been included as business income by my accountant, but it wasn't. The grant was for writing the second draft of a book. I had to have a pretty impressive portfolio of published work to even be eligible to apply, so to my mind, it is writing income. But my accountant's paperwork shows a $400 loss to my business and the grant is in a separate category. My broker thinks this will not be acceptable to the bank. (I do have rental income and tax free income as well). I was thinking about trying for bridging finance and have just spent some hours trawling through the gallons of information on this site and it appears to be a risky venture, committing to selling a house in under 6 months (although all the agents I've spoken to believe it will sell within 3 months). Anything else I can do, or a way I can present my case favourably to the bank? I have signed the accountants paperwork and it has been electronically lodged. I don't think he has done me any favours, but perhaps this is the rule for grants? I did call a couple of accountants from the phone book and they seemed to think the grant would be classed as income, but were not sure. I will not have the assessment notice until after the auction. I have no bas statements or GST registration for a low doc loan.
I have made an appointment with the bank - thought it was worth a shot? Any thoughts? Wasting my time or is there a way through? I'd appreciate any advice or comments, thanks.
