Have you ever encountered an unusually large dollar amount on an individual’s tax return that made you stop and think twice? Recently, an analyst had this situation occur and called in to the Buker’s Hotline for assistance. On this month’s cash flow article, let’s explore their scenario and the appropriate cash-flow adjustments required. Unusual Tax-Exempt…
Should the Federal tax refund be included in the cash flow analysis of your borrower’s tax return? This is a question we commonly hear from lenders and analysts. Most individuals receive tax refunds when they file their Form 1040. But, is this something we should actually include in our cash flow calculation? Federal Tax Refund on…
We recently received a call to the Bukers Hotline from a banker who was analyzing her borrowers 2020 Form 1040. She noted the whitepaper detail for Line 2a Tax-Exempt Interest listed a partnership that the borrower was a partner in as the source for the tax-exempt interest income. Is it cash flow? It depends. The…