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Blog A Two-Day, Live Webinar
Unraveling the Mysteries of K-1s and Pass-Throughs
The Secret to Understanding Personal Tax Returns.
Audience
Consumer lenders, consumer loan underwriters, consumer credit policy managers, small business lenders, small business loan underwriters, and commercial lenders in the U.S.
Unraveling the Mysteries
of K-1s and Pass-Throughs
12:00 PM – 1:30 PM ET
Fee: U.S. $655
December 8 and 10, 2009
Facilitated by
Jan Abrams
Omega Performance’s Vice President,
Product Manager of Consumer Credit
Abstract
Personal tax returns are used frequently to help evaluate consumer and small business credit requests, and to evaluate the value of guarantees for commercial loans. However, many individuals using these tax returns are unaware of the nature and location of non-cash information that is included in many of the tax return lines that are commonly used for cash flow and debt repayment capacity analysis.
Unraveling the Mysteries of K-1s and Pass-Throughs—a series of two live Web seminars—will help lenders and analysts acquire analytical skills needed to accurately calculate and evaluate cash flow received from the many business entities that can be represented in a personal tax return in order to estimate debt repayment capacity.
Specific topics covered during Unraveling the Mysteries of K-1s and Pass-Throughs include:
- Exploring the anatomy of a personal tax return, including the flow of information among the various forms and schedules, and the linkages between them
- Using Schedule E and K-1s to identify pass-through (non-cash)items from the various business ventures that affect the personal tax return
- Identifying actual cash inflows and outflows from sole proprietorships, rental and royalties, partnerships, S corporations, and estates and trusts
- Isolating and calculating total cash flow to or from the taxpayer from each entity
Webinar Overview
Upon completion of the webinars, you will be able to:
- Explain how various tax forms and schedules relate to each other and to Form 1040
- Use Schedule E to identify other business or investment entities that pass profits, losses, income, credits, or expenses through to the taxpayer
- Identify the cash and non-cash items (pass-throughs) shown Schedule C and on the on K-1s from partnerships, S corporations, estates, and trusts, and identify how those items can cloud cash flow
- Use the tax return information to calculate the actual cash income and outflows from those entities to the taxpayer
- Distinguish between one-time and ongoing cash flow
Benefits to Your Organization
Unraveling the Mysteries of K-1s and Pass-Throughs helps your organization:
- Improve relationships between line lenders and underwriters by increasing the understanding of complex tax return analysis issues
- Improve accuracy of evaluation of debt servicing capacity
- Create trust between customers and lenders and improve the quality of the credit conversation
- Reduce problem assets and related direct and indirect costs
- Improve turnaround time for complex consumer credit requests through improved underwriting efficiency and better decision-making
- Increase income and reduce losses for your financial institution
About Our Facilitator
As Vice President, Product Manager of Consumer Credit, Jan Abrams manages a variety of consulting, customization, facilitation, and product development projects. She has over 10 years of direct commercial and retail banking experience, and over 25 years of experience with Omega Performance.
Fee
U.S. $655 that includes:
- One connection to each webinar session (invite colleagues to view with you at your desk or in a conference room for no additional fee)
- Unlimited access to the recordings of the two sessions for 45 days
Credit card payments only. You will be prompted for your credit card information when you register. MasterCard, VISA, and American Express are accepted.
Questions about registration or payment? Call Amanda Plaskett at +1.704.672.6046.