Quote; "Can depreciable assets or assets that you've marked for depreciation on your self-employed business income be added back into the income?"
No. Depreciation is a normal cost of doing business. You can not recapture any depreciation until the business asset is sold. Then that is taxable income.
Any banker that reviews your income tax records will expect to see a standard deduction or an itemized deduction. In other words, taking the standard or itemized deduction will not lower credit score or decrease your chance of getting a loan approval. You will just be paying too much income tax.
You should include all your income and all of your expenses. Nothing could be worse than qualifying for a loan you can not afford. Generally, if your profits go up, so does your tax liability.
