I just started dancing this morning! YAY...Anyway, now that I am my own "business owner" wouldn't it be wiser to report more money than less? Considering I am looking to buy a house in a few months?
I would like everyones feed back on this...I keep hearing different answers from different friends.
Thanks
Moon
I transplanted this post from another thread because it raises a number of interesting and important points.

Buying a house will almost certainly involve mortgage financing. Banks and finance companies judge the creditworthiness of a person seeking a standard mortgage based on their declared verifiable income i.e. income previously reported on tax returns. From this standpoint, the higher the declared income, the more likely that person will be able to obtain a standard mortgage in the future (and at a better interest rate as well).

Buying a house will absolutely result in a property deed transfer being filed. This will absolutely result in the IRS receiving a report of the transaction, meaning that person with SS# X spent Y dollars as a down payment plus assumed Z dollars worth of monthly payments. It's very likely that IRS computers will cross-check tax returns for the same SS# to verify that the person who bought the house had previously declared and reported enough income to cover saving the amount spent as a down payment, plus enough income to cover the future monthly payments on top of ordinary living expenses for a typical person living in the zip code area where the property is located. If the IRS computers do not turn up previously filed tax returns, or do turn up tax returns that report only say $20k or $30k of annual income for a person who just paid $20k to $30k for a down payment plus assumed $10k to $15k in annual mortgage and property tax payments, alarm bells are going to ring.