Posted by: islamicfinancingnews | September 30, 2014

Islamic home financing and a few tips for the self employed

Islamic home financing is like other kinds of western style loans in several ways and of course different in others. Islamic mortgage financing is the right choice for self employed people, but you need to remember above all that the net income after deductions is the one the loan officers will look at when they’re accepting or rejection your application.

Of course that means you need to have all your documentation in order. Start with the receipts for any and all deductions as these are the foundation of reducing the amount of taxable income that you need to pay on.

Remember that it’s never a good idea to claim something that you cant account for through a proper receipt and big fluctuations in the amounts you deduct are likely to raise some suspicions with either the IRS or the Canadian CRA.

You need to understand what can and can’t be claimed as well. For example, some office equipment is better documented through depreciation over several years rather than all at once since this method favors the self employed person making the claim.

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