Tax Return & Financial Statement Analysis

Mandi’s question: I recently purchased your Essentials 1040 Review and Beyond the Basics Manual. I have a question regarding the taxes and insurance shown on line 16 of the Schedule E My... Continue Reading

You may wonder why you should care if an individual, either your borrower or the guarantor of the business borrower, is playing a little fast and loose with the ‘hobby’ rules. I... Continue Reading

I just read a great article entitled “The CAMELS Rating: How to Get Over the Hump” by Roger Shumway, executive vice president and chief credit officer at the Bank of Utah. As a reader... Continue Reading

Sean’s question: I have a personal guarantor to my main borrowing entity. That guarantor also has ownership stake in 6 other partnerships/s-corps. To look at the global cash flow of my... Continue Reading

How do bankers plan to maintain credit risk readiness in a good economy but with trouble on the way? Continue Reading

Patrick’s question: In your manual, Tax Return Analysis: Fundamentals and 1040, you state that interest from a partnership or S corporation can represent payments on a loan made to the... Continue Reading

Jenifer’s question: We recently purchased new software that has a different approach to adding back depreciation on a 1065 return. In the past, I added back Line 16A (Depreciation including that... Continue Reading

Alyssa’s question: Does military retirement income show on the tax return? I have a borrower who listed this information on their application, but I do not see it on the Tax Return. Linda’s... Continue Reading

Carrie’s question: Any suggestions on underwriting lease to own companies (that lease household items, appliances, etc.). I have one that we are working on and they account for the items as fixed... Continue Reading