Answer

For FHA loan qualifying automobile allowances and expense account payments, only the amount by which the borrower's automobile allowance or expense account payments exceed actual expenditures may be considered income.
The borrower must provide IRS Form 2106, Employee Business Expenses, for the previous two years to establish the amount of income that may be added to gross income.
The borrower also must provide verification from the employer that these payments will continue. (If these calculations show a loss, that amount must be treated as a recurring debt. If the borrower uses the standard per-mile rate in calculating automobile expenses, as opposed to the actual cost method, the portion that the IRS considers depreciation may be added back to income.)
Additionally, the borrower's monthly car payment must be treated as a recurring debt; it may not be offset by the car allowance.

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