Tag: Family Business

Calculating Family Business Income in a Buyout

Question: A mother and daughter owned a company at 50/50 for years.  Earlier this year, the mother retired and sold her portion of the business to her daughter (the other 50%).  The daughter’s obligation is to pay the mother $1,000/month for 15 years and we do have a note for this.  I’m wondering if I […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

FHA – Employed by Family Member: Why does FHA require personal tax returns for a W2 employee of a family-owned business?

Answer: Personal tax returns will verify that the borrower is not an owner of the family-owned business. The 2016 and 2017 taxes will be required. The qualifying income will be calculated per the guideline below. Reference: 4000.1, II, A, 4, c viii. Employed by Family-Owned Business (TOTAL) (A) Definition: Family-Owned Business Income refers to Employment Income […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Scroll to Top