RESOURCES
Cash Flow Analysis
Not all income reported on a tax return represents true cash flow. These articles focus on the adjustments and considerations lenders must make to accurately assess borrower income.
Featured Articles
Excess Distributions – Are They Cash Flow?
Excess distributions can significantly impact how borrowers income is interpreted. This article explains what excess distributions are, when they represent real cash flow, and when they should be treated with caution.
Section 179 Expenses From Flow-Through Entities
Section 179 expense can significantly reduce taxable income but does not represent an actual cash outflow. This article explains how Section 179 is reported, when it should be added back, and how it impacts borrower cash flow.
Capital Loss Carryovers – Are They Cash Flow?
Capital loss carryovers can reduce taxable income but do not reflect current-year cash activity. This article explains how carryovers are created, how they appear on a return, and why they should not reduce borrower cash flow.
More Resources
Tax Return Analysis
Articles focused on interpreting tax return forms, business returns, K-1s and borrower cash flow documentation.
Lender Risk & Interpretation
Articles focused on identifying borrower risk factors, cash flow inconsistencies, and underwriting considerations that impact lending decisions.