Personal Tax Returns and Cash Flow: Focus on Pass-Through Entities and Schedule K-1s-Sp23

Presenter: Richard Hamm, Advantage Consulting and Training

This 90-minute program will be presented live on: Pre-recorded

Recording available through: May 14, 2023

Price: $330

Bankers underwrite loans primarily from tax returns, particularly at the community bank level. What reported income on a personal tax return actually is cash flow? What items on a Schedule K-1 involve cash inflows and outflows to our customer? Using case examples and worksheets, this seminar covers how to analyze personal tax returns to develop cash flow within a simple, logical and consistent framework. It provides the tools needed to reduce voluminous amounts of forms and schedules into a concise, relevant picture of cash flow, focusing on personal situations where pass-through entity items are reported in the tax return.

Specific subjects that will be covered during the seminar:

• Overview of business entity choice issues, and why pass-through entities are popular with private businesses
• Connecting a business tax return with the Schedule K-1 provided to the owner(s)
• The “Schedule E dilemma” and approaches for using income or cash flow from entities where the owner has either a majority or minority ownership interest
• Case example and worksheet for situations with pass-through income (expense)
• Pros and cons, from a taxation standpoint, of ways self-employed and small business owners can extract cash and/or recognize income from their businesses
• Why small businesses often show a year-to-date profit through November, that it all disappears by year-end

Target Audience: Branch managers, consumer lenders, mortgage bankers, private bankers, small business lenders, commercial lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit officers