An analyst recently called into the Bukers Hotline with a unique situation. A borrower, who hadn’t yet filed their 2024 tax return, submitted their 2024 W-2 for cash flow analysis. When spreading the salary information directly off the W-2, the analyst noticed that the amount in Box 1 was significantly lower than what was reported…
An analyst reached out to us recently on the Bukers Hotline with a question about the Family and Medical Leave Act (FMLA) and how it may affect their borrower’s cash flow. The borrower told the analyst that their W-2 wages were going to appear lower than expected on Page 1 of their tax return, but…
Have you ever seen the sale of stock on Schedule D with identical purchase and sale dates? At the same time, the sales price is the exact same amount (or close to it) as the cost? This indicates the exercise of stock options by your borrower. As a result, your borrower’s W-2 wages may include “paper”…
Have you ever come across a Schedule K-1 that reports W-2 wages? Does this represent actual cash wages received by the recipient of the K-1? An analyst recently called into the Bukers Hotline with this exact question to determine if and how this affects their personal cash flow analysis. The Quick Answer To answer the…
An experienced banker called into the Bukers Hotline with a great question on wages and the Form W-2. Here was the situation: The banker’s question: Which wage figure do I include in my cash flow analysis? Should I use wages from line 1 of the Form 1040 of $210,000 or the Medicare wages of $228,000…