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spider2928 · Joined: 27 Jan 2010 Posts: 6 2.62 Dollars($)

OK, my 2008 tax return shows that my adjusted gross income was $155,872. Of that amount $52,000 was salary, $41,997 was commission and $61,875 was stock options. In 2009, my adjusted gross income was $56,462 which was all salary. I also earned a little over $10,000 in commission but the company did not pay it in time for it to be shown in my 2009 W2. How would my commission be determined in this situation? I understand that my stock options cannot be used since they are not consistent but I am anticipating a minimum of $20,000 in commission this year and for it to continue thereafter.

gmakerley · Posted: Wed Jan 27, 2010 1:56 pm Post subject:

spider that's a bit too little information to provide a real analysis. given that you're partially commissioned, it would seem that you're probably also writing off some of your expenses. if that's the case, your qualifying income is going to be affected. your 2009 income will be averaged with 2008, so that's not exactly in your favor. anticipated commissions aren't given much credence.

spider2928 · Joined: 27 Jan 2010 Posts: 6 2.62 Dollars($)

I do not write off any expenses. So does this mean that my salary plus commission for 2008 ($93,997) would be averaged with my salary in 2009 ($56,462) to give me an income of $75,229.50 for loan? Sorry for all the questions George...

gmakerley · Posted: Thu Jan 28, 2010 9:17 am Post subject:

no need to apologize for your questions, spider. your analysis of the calculation is correct - now you have to hope that whoever the underwriter is will follow that as well. i'd suggest you supplement your income data with a letter from your company explaining the lack of commissions for 2009, along with documentation of the subsequent payment of those commissions (i assume) this year. that way, they can feel better about taking them into consideration in the first place.

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How would commission be determined in this situation...

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