https://ttlc.intuit.com/community/taxes/discussion/in-terms-of-mortgage-loan-qualification-and-dti-if-given-choice-between-179-and-special-bonus/01/3090301#M1128549 <P>Curious if in terms of mortgage loan qualification is the calculation of DTI the same if someone takes a 179 deduction vs special bonus deprecation? For example sole owner of an s corp buys $50k asset, the business income is $25k. &nbsp;Taking as a 179 deduction I believe appears to show positive income on box 1 of $25k on the k1, and 179 deduction in box 11 of the k1 of $25k? &nbsp;The s corp owners 1120s I believe still shows $25K of income? &nbsp; Alternatively taking as special bonus deprecation, the business owners k1 now shows in box 1 a net loss of $25k, and there is nothing listed in box 11 since they did not take a 179 deduction. However the 1120s I believe would show on page 1 line 14, $50k of depreciation?&nbsp;</P><P>&nbsp;</P><P>The business owner needs to get a mortgage loan. Will underwriters add back the depreciation in either scenario?</P><P>&nbsp;</P> Tue, 24 Feb 2026 07:23:46 GMT cbusa 2026-02-24T07:23:46Z https://ttlc.intuit.com/community/taxes/discussion/in-terms-of-mortgage-loan-qualification-and-dti-if-given-choice-between-179-and-special-bonus/01/3090301#M1128549 <P>Curious if in terms of mortgage loan qualification is the calculation of DTI the same if someone takes a 179 deduction vs special bonus deprecation? For example sole owner of an s corp buys $50k asset, the business income is $25k. &nbsp;Taking as a 179 deduction I believe appears to show positive income on box 1 of $25k on the k1, and 179 deduction in box 11 of the k1 of $25k? &nbsp;The s corp owners 1120s I believe still shows $25K of income? &nbsp; Alternatively taking as special bonus deprecation, the business owners k1 now shows in box 1 a net loss of $25k, and there is nothing listed in box 11 since they did not take a 179 deduction. However the 1120s I believe would show on page 1 line 14, $50k of depreciation?&nbsp;</P><P>&nbsp;</P><P>The business owner needs to get a mortgage loan. Will underwriters add back the depreciation in either scenario?</P><P>&nbsp;</P> Tue, 24 Feb 2026 07:23:46 GMT https://ttlc.intuit.com/community/taxes/discussion/in-terms-of-mortgage-loan-qualification-and-dti-if-given-choice-between-179-and-special-bonus/01/3090301#M1128549 cbusa 2026-02-24T07:23:46Z https://ttlc.intuit.com/community/taxes/discussion/re-in-terms-of-mortgage-loan-qualification-and-dti-if-given-choice-between-179-and-special-bonus/01/3090313#M1128552 <P>You will have to ask the underwriters and/or lenders, but they should understand that depreciation (cost recovery deductions), in whatever form for tax purposes, is a phantom deduction.&nbsp;</P> Fri, 15 Sep 2023 13:45:45 GMT https://ttlc.intuit.com/community/taxes/discussion/re-in-terms-of-mortgage-loan-qualification-and-dti-if-given-choice-between-179-and-special-bonus/01/3090313#M1128552 Anonymous_ 2023-09-15T13:45:45Z