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Cash Flow Depreciation Module for Bankers

Depreciation confusion: What if you start with Net Income per books?

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...
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Tax Return Analysis - Military Pay

Is military retirement pay always taxable?

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...
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Cash Flow Depreciation Module for Bankers

Add-back Depreciation with Lease-to-Own?

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...
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Lending to Complex Borrowers

What to do with 481a adjustment?

Charlene’s and Yousaf’s question: Both Charlene and Yousaf had a question about 481a this month. It must be a good one! Charlene said: Our client, an S corp., has other income on line...
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Confused banker

Changes to the 2018 tax forms will be confusing

I update the tax forms we use in our resource manuals and modules on tax return analysis yearly. It is easy to see how the 2018 forms and tax due will compare...
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Online Training for Credit Professionals

Two Year-End Webinars for Bankers

Things slow down for some of us in December so this is a perfect time to fit in two webinars that will help you and your customers in 2019. Improve your readiness for the next recession....
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Are banks ready for the next recession?

Size Matters: Are banks ready for the next recession?

In the 2018 Credit Risk Readiness Survey, we asked banks whether they were more or less optimistic than last year. Blue= Agree or strongly agree; White=neutral; Aqua = Disagree or strongly...
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Are you missing a depreciation add-back?

Jordy’s question: Should Form 4562 depreciation be added back to cash flow? Every analysis I have seen does not use Form 4562 and instead goes to the schedules (on the individual return) and the...
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Lending to Non-Profits

Cash Flow Analysis of a Non-Profit Entity

Stephanie’s question:

How do you apply the cash flow analysis rules of a business to a non-profit entity instead?

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