Analyzing Alternative Income
During this course case studies will be analyzed using the Fannie Mae form 1084 method to calculate self-employed income for Sole Proprietors, Partnerships and Corporation owners. Class time will also be spent analyzing rental income, pension income and income derived from retirement funds.
What it's about
At the conclusion of this course participants will be able to recognize self-employed or other income, represented on the 1040, and determine which schedules apply and how to analyze and calculate that specific type of income.
Classes consist of four 90-minute live sessions with instructors delivered through the WebEx training platform.
During this course case studies will be analyzed using the Fannie Mae form 1084 method to calculate self-employed income for Sole Proprietors, Partnerships and Corporation owners. Class time will also be spent analyzing rental income, pension income and income derived from retirement funds.
What will I learn?
Upon completion of the course, students will be able to:
- Identify and explain various types of business structures
- Evaluate the 1040 Individual Tax Form and identify required schedules when determining income
- List additional documentation requirements
- Calculate income for a variety of self-employed borrowers
- Calculate income fro a variety of other types of income derived from the tax returns
- Identify Tax Return Red Flags
Benefits
Attendees will have the ability to review and analyze various types of income derived from tax returns, determine based on income, type if all schedules have been provided and recognize inconsistencies and/or red flags within the documentation provided.
Agenda
During the course the following topics will be covered:
Session One
- Defining the Self-Employed Borrower
- Evaluate risks of a self-employed borrower
- Identify indicators of employment stability
- Business Structure Overview
- Identify 5 types of business structures
- Sole Proprietor
- Partnerships
- LLC
- "S" Corporations
- Corporation
- Viability of business
- Analyze tax returns - Fannie Mae Form 1084 Cash Flow Analysis versus SAM method
- Schedule C Case Study Review
Session Two
- Business Tax Returns
- Form 1065 Partnership
- 1065 K-1 Review
- Case Study Analysis
- Form 1120s S Corporation
- 1120s K-1 Review
- Case Study Analysis
Session Three
- Corporate Returns
- Form 1120 Corporate
- 1120 – K-1
- Other Schedules of the 1040 – Non self-employed income
- Schedule A
- Form 2106
- Schedule B
- Schedule D
- Schedule E
- Schedule F
- Red Flags
- Profit & Loss and Balance Sheet
Session Four
- Review of Sessions 1 - 3
- Review case studies as a group