It's tax season time and many are gathering up W2s, 1099, etc to be able to file income taxes for the 2015 year.  If you are even considering becoming a homeowner in the near future, be careful with the write offs. Tell your tax preparer your plans and ask him/her what you may need to be mindful of when filing this year so that it will not hurt your chances of qualifying for a home mortgage.  If you prepare your taxes on your own, then make sure you are minimizing your business expenses/write offs.  

When you file your taxes, if you have any unreimbursed business expenses which result in a loss then the amount of your qualifying income a mortgage lender can use will be reduced.  For example, if your total loss is $10,000 for the year and your annual income is $50,000, the mortgage lender will have to deduct the entire loss of $10,000 from your annual income lowering your total qualifying income to $40,000. The amount of home loan that can be extended to you will then be based on $40,000/yr income.  Some deductions can be added back into your income if they are considered non-recurring losses (i.e.. depreciation), but most are not.  

So although the write offs can help reduce your tax liability, it can also reduce a person's borrowing ability, having a negative affect when you are trying to apply for a home loan.  Lenders will request your full tax returns (with all schedules) and request a tax tranfrom the IRS when you apply for a home loan.  So again, if you are considering applying for a home loan (or any type of loan) you may need to "bite the bullet" this tax year and forgo the deductions so that you can show more income on tax return to qualify for that loan you desire.  Talk to your tax preparer for more insight.