RESOURCES
Tax Return Analysis
Understanding how to read and interpret a tax return is the foundation of accurate borrower analysis. These articles focus on key forms, schedules, and reporting nuances to help lenders confidently navigate complex tax returns.
Featured Articles
Schedule K-1 Sections M and N: What Lenders Should Know
Sections M and N of the Schedule K-1 provide important details about a borrower’s investment and activity. This article explains what these sections represent, ow to interpret the information, and why they matter in a tax return analysis.
Schedule F vs. Form 4835: Key Differences for Lenders
Schedule F and Form 4835 are both used to report farming activity, but they reflect different levels of involvement. This article explains the difference and how each impacts the interpretation of borrower cash flow.
Form 7203: Understanding S Corporation Contributions and Basis
Form 7203 provided insight into a shareholder’s basis in an S Corporation. This article explains how to use the form to identify contributions and better understand a borrower’s financial position.
More Resources
Cash Flow Analysis
Articles focused on evaluating borrower cash flow, recurring and non-recurring income sources, and adjustments that impact lending decisions.
Lender Risk & Interpretation
Articles focused on identifying borrower risk factors, cash flow inconsistencies, and underwriting considerations that impact lending decisions.