Webinar: Qualifying Borrowers
Using Personal Tax Returns Part 2: Income from Rentals, Royalties,
Partnerships, S Corps & Farms
Wednesday, February 20, 2013
Speaker: Tim Harrington, CPA, TEAM
About the Program
Lenders often use tax returns to identify qualifying income for
borrowers. But taxable income and cash flow are usually different.
Borrowers pay you back with cash flow, not taxable income. Understanding
the cash flow of borrowers is as important as it has ever been. This
webinar takes the mystery out of borrowers’ personal income tax
returns. No more guessing how much cash flow your borrower is really
earning. You will learn how to obtain verifiable income from rental and
royalty property (Schedule E Page 1), from partnerships and S
corporations (Schedule E Page 2), and from farms (Schedule F).
Overestimating income from a tax return can lead to approval of a
weak loan that could eventually cost you tens of thousands of dollars.
Underestimating income can lead you to deny good loans you need to grant
in this tough economy. This seminar will make the process of analyzing
personal income tax returns simple and understandable by using quality
instruction and frequent examples.
Form 1040 Page 1 – Find hidden income on the front page of the
return and remove taxable income that has no cash flow benefit
Schedule E Page 1 – Calculate the real cash flow from a rental
Schedule E Page 1 – Understand the effect of mortgage interest
and principal paid on debt ratios, cash flow, debt service, and
Schedule E Page 2, Partnerships & S Corporations – Learn
what information is usually useless for a lender and identify where to
find the real cash flow
Schedule F, Farm Income – Uncover additional income that might
be hidden in farm income