A borrower receives 1099-MISC income for consulting work but also has significant unreimbursed business expenses. These expenses should be:
Correct Answer
B) Subtracted from the 1099 income to determine net qualifying income
For 1099 income, business expenses that are necessary to generate the income must be subtracted to determine the net income available to the borrower. This includes expenses like equipment, supplies, or other costs directly related to earning the 1099 income.
Why This Is the Correct Answer
For 1099 income, business expenses that are necessary to generate the income must be subtracted to determine the net income available to the borrower. This includes expenses like equipment, supplies, or other costs directly related to earning the 1099 income.
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