i-134.Insufficiant income but assets???HELP.

[kori 1]

Hi everybody.

NOA2 in mail and already NEW headache.

My fiance's (self-employed) 1040 form,line 20 shows an income of $3000????.Its bank account shows for almost 2 years deposit of $3800/months and he spend at least $3500/month.He owns 1 house valued to $200 000 that he just started renting this month and he is paying a loan($2000/month) on the house he is living in...His part on this second house is estimated to $150 000.He also have 3 cars beside the one he is driving.

Question one:Am lost as for the tax transcript because, how can someone pay each month $2000 and have an income of $3000 a year?

Question2:As we will have to list the assets,are we obliged to do the appraisal on both houses?Each month he recieved a receipt for the house payment indicating the value of the house ,how much he owns on the house and he has a 7 years old appraisal on the same house.on the house he completely owns,he have the receipt he pays each year for property tax which state the house value.

Question 3;He started renting the house he fully owns this month,how can we include it as an income?

Question4:Do we need to state the value of cars?If yes, What are the documents needed.

Question5:Should we submit Tax transcript or tax return????

BIG QUESTION:How can we proove he will be able to support me?

Thanks for your help.

PS;The household will include him and me.

[Anh map 2,098]

To use a house as an asset there must be a recent valuation done by a licensed appraiser. Also the title/ownership must be submitted along with a current mortgage balance statement (if any).

Tax transcripts are preferred. Copies of the complete tax return and all supporting documents can be submitted instead of the transcript.

[Penguin_ie 5,994]

1. Because he has many deductions/ expenses

2. Yes, you need a recent appraisal.

3. Show rent receipts/ lease, the bank account the money goes into- since you only got NOA very recently, you'll likely have 2-3 months receipts by the time interview comes around.

4. If you need to use them as assets, yes. I believe Kelly BlueBook values are accepted (plus showing you own them outright).

5. Up to you

7. By documenting revenue streams and assets very well.

[pushbrk 12,898]

1. Because he has many deductions/ expenses

2. Yes, you need a recent appraisal.

3. Show rent receipts/ lease, the bank account the money goes into- since you only got NOA very recently, you'll likely have 2-3 months receipts by the time interview comes around.

4. If you need to use them as assets, yes. I believe Kelly BlueBook values are accepted (plus showing you own them outright).

5. Up to you

7. By documenting revenue streams and assets very well.

I like the concise answers but they will not care about your answer to 3 above. For the self employed, "income" is not "income" until it appears on line 22 of a tax return. The same goes for 7 above. Revenue is not "income" in this context. For the self employed (business) "income" is revenue minus associated business expenses. No matter how much positive cash flow a rental home is producing today, it is still not "income" until it appears on line 22.

Houses. Appraisal and mortgage statement. State the value as the difference between the two, (equity).

For cars, blue book is OK for value but the same concept applies, only the equity is stated as an asset so if they are owned without loans, you show the blue book value and the free and clear title.

Finally, the US Citizen is usually in the best position to understand the affidavit of support and US tax issues. I suggest the USC, start dealing with all this directly ASAP.

[kori 1]

Thanks to you all for your prompt answer.

You are all really helpful.