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TCJA: Why borrower tax returns may change before 2018

What is changing this year? You may know that the tax law does not take effect until January 2018, so why would you see changes in the 2017 return? what difference will that make to a loan...
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The Tax Cut and Jobs Act: What difference will it make for borrower analysis?

I have not gotten a lot of questions about the Tax Cut and Jobs Act (TCJA) yet, but they will hit as soon as the 2018 tax returns are out. Most of the provisions took effect on January 1, 2018. I...
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Double-Counting Capital Gains Income from a 1065 K-1

Jackie asks: My bank has a lot of financial services clients who participate in investment vehicles (private equity/venture capital funds) that issue a 1065 K-1. In our goal to give them credit...
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Millennial Bankers: Crash Course in the Credit Collapse

Credit and lending professionals in my presentations on Credit Risk Readiness at banking associations, and in my training programs on Global Tax Return Analysis, often include Millennials, some...
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Lending to Complex Borrowers

Discrepancy in taxes paid on C-Corp Tax Return

Ryan asks: On the 1120 tax return, at the bottom of page 1, it lists total tax of $29,280. However when looking at page 5, Schedule M-1, there is no Federal Income Tax listed. Is there a reason...
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Double-counting Pass Through Cash Flow

Joey asks: I am concerned about double-counting income on pass through entities. Here is my example: XYZ company started 1/1/17. The company made $100,000.00 in profit. The personal tax return of...
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K-1 in global cash flow analysis

Distributions from General Partnership to C-Corporation

Higgins asks: I see a partnership has made distributions to various C-corporations. The C-corporations received Schedule K-1s showing the distributions. Where on form 1120 would I see these...
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House for Sale

Schedule C Balance Sheets: Required under Appendix Q?

Paula asks:

When doing a mortgage loan under the Appendix Q guidelines, we have been told a Balance Sheet is required, even for a Sole Proprietorship. I...

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Cash Flow

Do I use self-employment earnings from the 1065 K-1?

Bill asks:

On the managing member’s 1065 Schedule K-1 for an LLC, Box 14 “Self-employment earnings (loss)" is $9,862,741 with a code letter of “C”. Is this...

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