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Converting a 1040 Personal Return to Cash Flow Part 2: Schedules D, E & F

Feb 24 2:00 PM - Feb 24, 2022 3:30 PM
Feb 24, 2022 2:00 PM - 3:30 PM
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Part 2 of this information-intensive series will continue the journey to convert 1040 personal tax returns into cash flow and will focus on Schedules D, E, and F.

Learning Objectives

  • Determine whether incomes on Schedule D are recurring qualifying income or onetime sources that shouldn’t be considered
  • Calculate Schedule E, Page 1 to find the real cash flow from rental and royalty properties
  • Identify real cash flow versus “phantom” pass-through incomes on Schedule E
  • Find hidden income in Schedule F

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 2 of this two-part series will cover Schedule D (Capital Gains and Losses), Schedule E Page 1 (Rental and Royalty Properties), Schedule E Page 2 (Partnership and S Corporation pass-throughs) and Schedule F (Farm Income). When you finish this session, you will be able do a little ‘magic’ and quickly convert your borrower’s personal tax return to cash flow. (Note: This method does not follow Fannie, Freddie, or QM rules used in mortgage lending.)



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.




Additional Info

Event Type

On-Demand Webinar

Topics Covered

  • On-Demand Webinars
  • Member Service
  • Lending & Collections