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Looking for add-backs in all the 'right' places!

I can tell it is getting harder to make loans. I am getting more questions through the ‘Ask Linda’ section of my website on unusual items the lenders want to add back.

The most recent…intangible drilling costs and accretion expense. I’ll be posting those questions (and answers) to the ‘Ask Linda’ archives soon.

The short answer, intangible drilling costs are real and accretion expense is non-cash…but is evidence of a major cost coming up.

The point…as you work harder to find adjustments to get from taxable income to recurring cashflow, look at those items that you have never understood and ask yourself if you have been missing something.

Then come to my website and use the ‘Site-wide search’ at the bottom of every page. Who would have known I might write about intangible drilling costs? Or  accretion expenses?

(Heck…now I have to get the answer up on the site!)

And why will I write about them? Gee, why do I even know as much as I do about them? Because someone just like you searched my site and, upon not finding the answer, asked. I’ll answer. And if I don’t know …I’ll do my best to find out.

What is your question?

BTW…the Texas bankers have been asking the most interesting questions lately. I met a bull up close and personal at my Granddaddy’s dairy farm outside of Hillsboro Texas when I was 8 years old. I guess the Texas bankers appreciate that I recognize ‘bull’ when I see it! ‘-)

About the Author
Linda Keith CPA is an expert in credit risk readiness and credit analysis. She trains banks and credit unions throughout the United States, both in-house and in open-enrollment sessions, on Tax Return and Financial Statement Analysis. She is in the trenches with lenders, analysts and underwriters helping them say "yes" to good loans. Creator of the Tax Return Analysis Virtual Classroom at, she speaks at banking associations on risk management, lending and director finance topics.