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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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Losses in Business

Increase federal taxes when borrower has large NOL?

Lisa asks:

If the client has an NOL carryover on their 1040, causing income tax to be $0, would we need to estimate income taxes after adding back the NOL...

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Linda Keith CPA at banking conference presentation

The funny in credit analysis and a tip on pass-through losses.

For my loyal ‘Ask Linda’ subscribers, fair warning. This post is mostly about having fun while learning. That’s it! But if you want to learn something and skip the case for fun...
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Lending to Non-Profits

Non-Profit Restricted Net Assets: How to factor them into cash flow

Carrie asks:

I have a question on a non-profit audited financial statement. Under the Statement of Activities (Unrestricted Column not Total Column) there is...

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When to ignore Section 179 ‘Depreciation’

Jake asks:

If a piece of equipment is financed and then expensed in the same year by way of a section 179 deduction, should I still ignore the section 179...

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Cash Flow

How should I treat owner loans to the company?

Jake asks:

If a partner in a company makes a personal loan to the company and receives interest when repaid on that loan (on 1040 Schedule B), is that cash flow?...
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Capital Gains in Cash Flow Analysis

Long-term vs Short-Term Capital Gains in Cash Flow

Gena asks:

How do you view long term capital gains versus short term capital gains in cash flow? I've seen it where some people include only the gain on the...

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Banker Review of 1040 Tax Return

Multiple 1040s For The Same Year?

Declan asks:

Why would a married couple filing together file 3 different 1040s in one year?

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