This class offers a more condensed, advanced focus on business tax returns for the purposes of mortgage qualification. We will review the 1084, K1's, and all self-employed borrower tax forms.
In this session you will learn to:
- Analyze tax returns from Schedule E Part II through the corporate tax return. This includes a review of the K-1s, 1065, 1120s, 1125, & 1120 forms
- Utilize the FNMA 1084 Cash Flow Analysis Form to simplify your income calculation
- Understand recurring and nonrecurring income and loss, as well as Ordinary Income vs. Distributions
- Understand when a liquidity test is needed and how to calculate liquidity using the “Current Ratio” formula as well as provide other common liquidity ratio approaches