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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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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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