Qualifying Borrowers Using Personal Tax Returns Part 1: Schedules B & C

Is taxable income different than cash flow? Most often, the answer is a big “YES!” Using tax returns to determine borrowers’ cash flow to service their debt is as challenging as ever. Join us to learn the latest techniques to help you sort out all that tax data and find exactly the information you need.

After This Webinar You’ll Be Able To:

  • Turn a tax return into a borrower’s cash flow report
  • Understand the concept of using recurring incomes as cash flow – and ignoring the rest
  • Determine cash flows from interest-earning investments and dividend-producing investments, etc. from Schedule B: Interest and Dividends
  • Correct the unreliable pass-through interest and dividend incomes earned from partnerships and S corporations with Schedule B
  • Note: partnership and S corp supplemental income will be covered in Part 2
  • Identify hidden incomes and a hidden expense in a sole proprietorship via Schedule C

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 Lenders Tax Analyzer© software
  • 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.

Tim Harrington, CPA – TEAM Resources
Tim Harrington
is Founder and CEO of TEAM Resources and has been a financial institution consultant for over 29 years. Harrington 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. Harrington 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.

Registration Options

  • $245 – Live Webinar Access
  • $245 – OnDemand Access + Digital Download
  • $350 – Both Live & On-Demand Access + Digital Download
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Jan 25 2023


2:00 pm - 3:30 pm



More Info