Which of the following would be an example of acceptable income documentation?

Acceptable income documentation in the context of USDA Rural Housing Loans must provide a reliable and verifiable source of income. Self-employment income reported on last year’s taxes is considered acceptable because it is documented through official tax returns, which represent an individual's financial situation over a substantial period. Tax returns provide insight into consistent income patterns, business expenses, and other relevant financial information, making them a trustworthy source for lenders assessing a borrower’s ability to repay a loan.

In contrast, projected future earnings, while hopeful, cannot be inherently verified and can vary significantly from actual income. Bank statements for the last three months, while important for understanding current financial status, do not provide a complete picture of an individual's income, especially for those who are self-employed or have variable income sources. Promissory notes from friends are not considered reliable income documentation, as they lack the formal verification needed to establish a dependable income source.