My wife is self employed and we would like to get a home after we file our taxes for this year. Since self employed people have a harder time getting home loans someone suggested that we claim less deductions from the business to increase her net income. Has anyone else heard of doing this? Also, someone suggested that we might be able to claim less deductions and then file an amended tax return, after we get a mortgage, and claim the deductions. Has anyone heard of doing this? The first option seems legal to me since we would just be paying more in taxes but I don’t know if the second suggestion would be okay or not. If anyone could provide some guidance that would be great. We don’t want to do anything that is illegal or anything. Thanks.

The premise of my question is based on some politicians’ suggestion that all business owners will file tax returns as individuals, thereby losing all their rightful deductions in order to not be taxed as a business because the exemption for tax increases is income under 0K?