how many tax returns when buying something?

Discussion in 'Taxes and Accounting' started by S. R. Hadden, Jan 10, 2004.

  1. say you wanna buy a car or a house and you tell them you're a trader. they may want to see a tax return. assuming credit history is ok, how many tax returns do they usually ask for? just one?

  2. It is a matter of the creditor's own individual underwriting policy. The creditor is trying to verify that you have the income sufficient to serve the loan. They may be satisfied with one year's tax return, but if if you tell them that particular year was unusual for some reason, they may want to see more. They are trying to determine what constitutes a "normal" year for you. It may be that one year will do it, maybe not.
  3. Htrader

    Htrader Guest

    When I bought my new car this year I had to show them my 2002 tax return in order to get the loan.

    They just wanted to confirm my yearly income since I was self employed.

  4. 2 years is standard, plus several months of bank statements.