How do I figure my income on my small business for a refinance.
My deductions show a loss for the year, but I do transfer money
From the business to my personal accountant for living expenses.
Thanks for your input.

So have you been living off your capital?

You can not just transfer money, you can pay yourself and then the check or money you give yourself is a business expense.

Even though it is YOUR business, you can not just take money from it, without showing it being paid out of business to YOU.

Also money paid to you is income to you,

But you can not just show your home electric bill as a business expense, it does .not work that way

You can't have it both ways (unless you keep multiple sets of books).
You told the IRS you had a loss, but were really spending business income on yourself. Now you aren't going to get a bank loan.
You could have talked to an accountant about being a corporation or employer and paying yourself a legitimate salary. Of course then you have to pay taxes on that income as an individual. So... there's no easy way to cook the books.

You can not just transfer money, you can pay yourself and then the check or money you give yourself is a business expense.



Chuck that is an incorrect statement, money you pay yourself out of a business is drawings, not a business expense. You are suggesting that this person has falsely calculated a loss in such a manner. I don't see that implied. What I see implied is a completely inept business owner doing what so many do, confusing income with profit and capital with available funds

He wants a loan, then prove you have sufficient income and available cash after drawings to repay the loan