I would be overpaying taxes (by not reporting expenses except depreciation) to show higher rental income so I could qualify for a nicer property in the near future. This appears to be allowed by IRS since no penalties are imposed for not reporting expenses or overpaying taxes. Would this strategy work/would lenders accept this? I know most people wouldn't make that trade off but from the math I've done it seems to be worth it if it meant I could qualify for a much nicer property.
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source https://www.reddit.com/r/RealEstate/comments/1luiwzr/will_lenders_use_my_net_rental_income_on_my/
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