Today I am going to discuss the Freddie Mac Unreimbursed Expenses Loophole. If you are a commissioned employee, school teacher, or work for a Scrooge of a company, please pay attention.
First, Unreimbursed Expenses are work-related expenses that your employer will not reimburse you for. The IRS will let you deduct the expense, which will be on your schedule A – line item 21. The breakdown of the expenses will be on form 2106, where the bank will also let you add back a portion of your business miles.
Second, unreimbursed expenses will be subtracted from your total income. Most people go to their CPA and say get me the biggest rebate. Your CPA will oblige in the form of unreimbursed expenses, if you a wage earner.
Freddie Mac does not address unreimbursed expenses in the guidelines. Fannie Mae does. If you work with a Freddie Mac lender, the unreimbursed expenses will not be counted against you.
To get you the best deal on a Boston home loan, please call me directly at 617-529-9317.