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Borrower’s mindset: Residential vs Commercial Real Estate

As always, I am on the hunt for information that will give real estate lenders insight into the minds, motivation and method of their investor/borrowers. Whether your bailiwick is residential...

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Online communications

How digital communications are eroding the C’s of Credit

Changes in the way we communicate with borrowers may be making it harder to apply the C's of Credit to loan origination decisions and ongoing monitoring. Bear with me, I am not going against...

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Cash Flow

Where are Guaranteed Payments on a 1040?

Michael’s question:

My question is about 1065, K-1,Part III section 4 Guaranteed Payments. In

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Confused banker

Draft 2018 1040 ‘Postcard’: Where is the cash flow?

The Internal Revenue Service has released a draft of the new, simplified, postcard size 1040. And it will replace the 1040, 1040A and 1040-EZ. Here is where lending and credit professionals...

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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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