Freelance Producer Buys With P&L Instead of Tax Returns

Nicole had been freelancing in television production for nine years. Good years, great years, and one pandemic year she would rather forget.

2023 was her best year yet — $340,000 in gross revenue from three major network projects. But between home office deductions, equipment write-offs, travel costs, and production expenses, her tax return net income landed at $94,000.

She was buying in Studio City. $1.25M. Solid 25% down. Credit at 724. But every lender used the $94,000 figure and said the debt-to-income ratio did not work.

One loan officer suggested she stop writing things off for a year or two. She almost fired him on the spot.

We used a CPA-prepared profit and loss statement covering the most recent 12 months. Her CPA documented $268,000 in net income after legitimate expenses — not the aggressive deductions that had minimized her tax bill. Different document, different purpose.

She closed in 26 days. Her accountant kept doing his job. So did she.

Your tax strategy and your mortgage application do not have to fight each other. P&L loans let them coexist.