I was wondering why the Qualified Dividends (9b) on the personal tax returns are not included in tax analysis cash flow.
With the challenge of qualifying borrowers we want to find and include every source of recurring cashflow possible. Add to that, we add Line 8a Tax-exempt Interest so it is natural to assume we could also add Line 9a Qualified Dividends.
Many lenders and their financial institutions don’t want to count on income from capital gains as a recurring source to service debt. I get that and don’t necessarily disagree. Although see the post on ‘Lending on Asset Conversion instead of Income‘ for another point of view.
An installment sale, where the taxpayer will receive payments over time from the sale of an asset, is treated differently in the tax return. The lender needs to spot it to find out:
