That's an excellent question. You may know that depreciation is added back to income for mortgage qualification because it is not a "real" expense but a tax code reduction of taxable income. Section 179 expenses are those business asset purchases that can be expensed entirely the first year rather than depreciated over time. You thinking is correct. 179 expenses are added together with depreciation on one's Schedule "C" & "F" and this entire box is added back to income in the Cash Flow Analysis used for mortgage qualification.
Ask our community a question.