Consumer and commercial lenders: Join us for this session on understanding personal tax returns

January 25, 2018

Regardless of recent tax reform talk, determining a self-employed borrower’s cash flow is as challenging as ever. Tax returns show taxable income, not cash flow. But borrowers don’t repay debt with taxable income; they use cash flow. Overestimating income from a tax return can lead to approving a weak loan that could result in a loss. Underestimating income can cause denial of good loans. Learn an easy, reliable process to convert a borrower’s personal tax return (Form 1040) into a cash flow statement using the free software included with this course.

This session on Wednesday, January 31, from 3:00 P.M. to 4:30 P.M., is designed for consumer and commercial lenders and will cover the first page of the Form 1040: Schedule A (Itemized Deductions), Schedule B (Interest and Dividend Incomes), Schedule C (Sole Proprietorship Incomes), and Schedule D (Capital Gains and Losses).

For those participating in this webinar, you can expect to cover:

  • Recurring versus nonrecurring income or loss
  • Determining cash flow from deposit accounts, stock investments, etc.
  • Pass-through interest and dividend incomes from partnerships and S Corporations
  • Hidden incomes and a hidden expense in Schedule C
  • When to accept income from capital gains, installment sales, and other sales

After participating in this webinar, attendees will receive: A free copy of Lenders Tax Analyzer© software; employee training log; and a quiz you can administer to measure staff learning and a separate answer key.

This webinar is offered through the League's partnership with the CU Webinar Network. For more information or to register, please click here. Don’t miss part two, Understanding Personal Tax Returns Part 2: Schedules E & F, on Tuesday, February 27.