Add-back Depreciation with Lease-to-Own?
Carrie’s question: Any suggestions on underwriting lease to own companies (that lease household items, appliances, etc.). I have one that we are working on and they account for the items as fixed...
View ArticleIs military retirement pay always taxable?
Alyssa’s question: Does military retirement income show on the tax return? I have a borrower who listed this information on their application, but I do not see it on the Tax Return. Linda’s answer:...
View ArticleDepreciation confusion: What if you start with Net Income per books?
Jenifer’s question: We recently purchased new software that has a different approach to adding back depreciation on a 1065 return. In the past, I added back Line 16A (Depreciation including that...
View ArticleSchedule B Interest: Pass-through or Cash Flow?
Patrick’s question: In your manual, Tax Return Analysis: Fundamentals and 1040, you state that interest from a partnership or S corporation can represent payments on a loan made to the entity and for...
View ArticleIncreasing credit risk in banking as economy hums along
How do bankers plan to maintain credit risk readiness in a good economy but with trouble on the way?...
View ArticleNon-obligated entities. Is the K-1 enough?
Sean’s question: I have a personal guarantor to my main borrowing entity. That guarantor also has ownership stake in 6 other partnerships/s-corps. To look at the global cash flow of my borrowing entity...
View ArticleWhat Credit Analysts need to know about CAMELS
I just read a great article entitled “The CAMELS Rating: How to Get Over the Hump” by Roger Shumway, executive vice president and chief credit officer at the Bank of Utah. As a reader of my blog, you...
View ArticleIs your borrower’s business a hobby?
You may wonder why you should care if an individual, either your borrower or the guarantor of the business borrower, is playing a little fast and loose with the ‘hobby’ rules. I suggest there are two...
View ArticlePI or PITI Confusion…
Mandi’s question: I recently purchased your Essentials 1040 Review and Beyond the Basics Manual. I have a question regarding the taxes and insurance shown on line 16 of the Schedule E My customer has a...
View ArticleCoronavirus: How the 2020 delayed 1040 due date will impact bankers
As I write this, the IRS has agreed to a delay filing of the 1040 tax return and payment of tax payments due on April 15th 2020 to July 15th 2020. This is relief due to the Coronavirus Pandemic. Many...
View ArticlePPP Loans: 4 approaches, 4 different loan amounts
The Payroll Protection Plan loan program was designed to roll out quickly, not to be clear and easy to implement. Understandable. The coronavirus pandemic requires quick action as we shut down our...
View ArticleCRE Triage as we Dip into the Recession
Some commercial real estate deals can be saved as we enter the recession caused by the global coronavirus pandemic. Some deals cannot be saved. What questions should lending and credit professionals...
View ArticleFirst Steps from CRE Triage to Performing Loan | Podcast
In the triage process, you will identify CRE loans that might be in jeopardy but can be saved. In this episode, we key in on your first steps to keep a troubled deal in the performing loan column....
View ArticleDo I use OBI or NIPB in Global Cash Flow?
Jennifer’s question: Hi Linda, I had my first conflict on Operating Business Income (OBI) vs Net Income per Books (NIPB) today. I normally start my cash flow with OBI. On the tax return I was...
View ArticleThe Square Root Recession | Podcast
Not a V, not a U, not a W. Economist Dr. Bill Conerly predicts a square root. When economists vary in their predicted drop in GDP from 57% drop to an 8% drop, learn what Bill is watching to predict the...
View ArticleA Business Path Through the Recession | Podcast
Practical steps a business owner should consider to plan, to respond quickly and to move forward through the recession. A four-plan approach to conquering the fear and moving forward. Thought-provoking...
View ArticleWarning signs for a troubled business?
I wrote the AllBusiness.com article linked below during the recession BEFORE the Great Recession of 2008/2009. And now we are in the Pandemic Recession. Turns out what was true three recessions ago is...
View ArticlePortfolio Stress Testing as the Economy Worsens | Podcast
We are zeroing in on stress testing at the portfolio level as the country melts down into the pandemic recession. Consider if you need to up your game, increase stress testing frequency, and better...
View ArticleThe PPP Mad Dash Continues: Forgiveness FAQs | Podcast
The PPP loan program was rolled out and implemented in haste, without the guidance that bankers generally rely on. As we build this airplane in mid-flight, Paula King CPA will give us actionable...
View ArticleCredit Risk Focus as We Head Into the Recession: A Practical Approach | Podcast
In this episode, Laurie Stewart will share what she is hearing from other Bank CEOs around the country as to what now, and what next, to mitigate credit risk as we head into the pandemic-related...
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