Cracking the Personal Tax Return Code Part 1: Form 1040, Schedules B & C

Tax returns are almost written in a secret code. This program and the accompanying software are the ‘magic’ code breakers you need.
Determining actual cash flow from a personal income tax return is critical for a lender because borrowers don’t repay debt with taxable income; they use cash flow. Learn to accurately interpret personal tax returns and identify reliable, recurring income.

Webinar Highlights:

• General: Identify recurring incomes as cash flow… and learn to ignore the rest
• Schedule B: Determine qualifying cash flows from interest-earning investments, dividend-producing investments, etc.
• Schedule B: Identify and ignore phantom incomes that pass through as interest or dividends
• Schedule C: Find hidden incomes and become aware of a hidden expense in sole proprietorships

Webinar Details
Tax returns don’t show cash flow; they show taxable income. What you need to know is cash flow because that is how your loan is paid back. With the process outlined in this session and the free Lenders Tax Analyzer© software each registrant receives, you will gain an easy, reliable method to convert a borrower’s personal tax return (Form 1040) into a borrower’s cash flow statement.

This is Part 1 of a two-part series. In Part 1, you will learn to cash flow the front page of Form 1040, Schedule B (interest and dividend incomes) and Schedule C (sole proprietorship incomes). When you finish this session, you will be able do a little ‘magic’ and convert taxable incomes into cash flows that you can plug into your credit scoring model, your debt-to-income ratio, or your disposable income calculation. (Note: This session is designed for consumer and commercial lenders. This method does not follow Fannie, Freddie, or QM rules used in mortgage lending.)

Who Should Attend?
This informative session is designed for lending personnel, including chief lending officers, service representatives, new accounts personnel, loan officers, loan underwriters, loan sales officers, credit analysts, loan processors, branch managers, CEOs, and other key lending staff.

Take-Away Toolkit

• Free copy of 2023 Lenders Tax Analyzer© software for 2023, 2022, and 2021 personal tax returns
• Employee training log
• Interactive quiz
• PDF of slides and speaker’s contact info for follow-up questions
• Attendance certificate provided to self-report CE credits

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your agency is prohibited. Print materials may be copied for eligible participants only.

Presenter
Timothy P. Harrington, CPA – TEAM Resources
Tim Harrington is Founder and CEO of TEAM Resources and has been a financial institution consultant for over 29 years.  Tim has advised lenders on verifying income from tax returns since 1992, and consults with financial institutions nationwide on issues of strategy, profitability, and board governance.  He speaks at nationwide conferences and has presented in Canada, Mexico, Puerto Rico, Jamaica, and the Virgin Islands.  Tim is the author of the popular software, Lenders Tax Analyzer.  In addition, his book “Eisenhower on Enlightened Leadership” has been used by management teams nationwide to improve leadership skills. He did his undergraduate studies at Gonzaga University and graduate studies at the University of Washington.

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