Many bankers underwrite loans primarily from personal and business tax returns, particularly at the community bank level. What reported income is actually cash flow? How can we properly assess a large capital gain (or loss)? How can you determine of an item is recurring? Why should you exclude non-recurring items? How do loss carryforwards affect cash flow? What is the Section 179 deduction? This program provides answers and provides case examples.

Specific subjects that will be covered during the seminar:

• Examples of capital gains (and losses) and how to extract the cash flow involved
• Issues in determining if an item is recurring
• When to ask questions of the borrower and/or his or her tax advisor when the tax return does not appear to make sense
• What is a loss carryforward item and how it should be treated in an analysis
• Overview of Section 179 for write-off or depreciation of assets
• In complex situations, ideas for limiting the analysis to material or significant items, and how to determine if further and/or annually updated information should be waived
• Ways to move forward with analysis while waiting for additional information
• Why you will often need information beyond what is reported in tax returns

 Target Audience: Branch managers, consumer lenders, mortgage bankers, private bankers, small business lenders, commercial lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit offi