Tax Return Analysis


Can you or can't you use Capital Gains as recurring cashflow to qualify your borrower for a loan?

Once again, I sense you are looking for a definitive answer. And it is....(wait for it)...it depends.When it makes sense to use Capital Gains as recurring cashflow:The borrower is receiving payments on an installment sale.

Posted Jul 20 2010 by Linda Keith

The most important question you must answer about your borrower

As a lender, you have three questions to answer before you can say 'Yes' to their loan request: Would the borrower pay the loan if they possibly could? Does it look like they can pay

Posted Jun 03 2010 by Linda Keith

Is that IRA a rollover or is it cash flow?

If you are pulling historical cash flow from a 1040 (what really happened in the checkbook), you need to include IRA distributions if they actually received the money.If you are pulling recurring cash flow from

Posted May 14 2010 by Linda Keith

Schedule C Review: From our updated manuals just out!

We just went to print on our new manuals updated for 2009 tax forms. Perfect timing since they are due this month (unless your borrower extended to October).Purchase the manuals if you don't have them

Posted Apr 22 2010 by Linda Keith

Spotting Fraud: Now You See It, Now You Don't

What works on auditors may work on lenders A 2009 study performed by researchers at the University of Massachusetts at Amhurst demonstrated that  auditors are less likely to find manipulated earnings when management directs their

Posted Mar 31 2010 by Linda Keith

Lending to Non-Profits? Forms and Cashflow

The 'Ask Linda' section of my website is a great way for you to get answers to your questions. And it is a wonderful way for me to find out what you need to know.

Posted Mar 17 2010 by Linda Keith

Lucky 13: Additions to cashflow you may be missing

This would be a bad time to miss an add to taxable income. Your borrower's need all the help they can get to qualify for your loan.Some in this list are personal and some are

Posted Feb 23 2010 by Linda Keith

LLCs Primer: Forms, Risk Exposure and Cashflow

Limited Liability Companies...the darling of small business. Along with S Corporations, probably one of the most used entity-types.What is in a name?Be cautious...a Limited Liability Company (LLC) is not the same as a Limited Partnership.

Posted Feb 16 2010 by Linda Keith

How do you create satisfied small business customers? How does that impact bank profits?

SHORT ANSWER in case you cannot read the entire post: Meet with you small business borrowers for a new needs assessment Visit at least 3.3 times each year Understand their business Demonstrate that you understand

Posted Jan 19 2010 by Linda Keith

What can I include in cashflow from Schedule B: Interest and Dividends?

Great question, since Schedule B is a mixed bag. As always, check your own guidelines. Here is my short list: Add Interest from banks, credit unions and S&LsWhen interest rates come back out of the

Posted Jan 15 2010 by Linda Keith