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Converting a 1040 Personal Return to Cash Flow Part 1: Schedules B & C

Feb 03 2:00 PM - Feb 03, 2022 3:30 PM
Feb 03, 2022 2:00 PM - 3:30 PM
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Borrowers don’t repay debt with taxable income; they use cash flow. Can you accurately interpret personal tax returns and identify reliable, recurring income?

Learning Objectives

  • Understand recurring versus non-recurring incomes or losses from Page 1 of Form 1040
  • Identify recurring and non-recurring income from Schedule B: Interest and Dividends
  • Differentiate “pass-through” interest and dividend incomes from real cash flow earned from Partnerships or S Corporations
  • Recognize four forms of hidden income and one hidden expense in Schedule C: Sole Proprietorships

In today’s tough lending environment, understanding a borrower’s true cash flow is as important as ever. This webinar will take the mystery out of personal tax returns. No more guessing how much cash income a borrower is really earning. Cash flow and taxable income are usually different, but with this process and the free Lenders Tax Analyzer© software, you will learn an easy, reliable method to convert a personal tax return (Form 1040) into a cash flow statement.

Designed for consumer and commercial lenders, Part 1 of this two-part series will teach you how to cash flow the front page of Form 1040, Schedule B (Interest and Dividend Incomes) and Schedule C (Sole Proprietorship Incomes). When you finish this session, you will be able do a little ‘magic’ and convert taxable income into actual cash flow that you can plug into your credit scoring model, your debt-to-income ratio, or your disposable income calculation. (Note: This method does not follow Fannie, Freddie, or QM rules used in mortgage lending.)

Agenda

Speakers

Tim Harrington, CPA, TEAM Resources

Tim Harrington is President of TEAM Resources and has been a financial institution consultant for over 27 years. Tim has advised lenders on verifying income from tax returns since 1992, and consults with financial institutions nationwide on issues of strategy, profitability, and board governance. He speaks at nationwide conferences and has presented in Canada, Mexico, Puerto Rico, Jamaica, and the Virgin Islands. Tim is the author of the popular software, Lenders Tax Analyzer. In addition, his book “Eisenhower on Enlightened Leadership” has been used by management teams nationwide to improve leadership skills. He did his undergraduate studies at Gonzaga University and graduate studies at the University of Washington.

Location

Fees

$259.00 

Additional Info

Event Type

On-Demand Webinar

Topics Covered

  • On-Demand Webinars
  • Lending & Collections