Personal Tax Return
These schedules flow to Schedule SE (Self Employment Tax)
Schedule C and Schedule F
Companies rely on this to classify their own customers by industry
NAICS Code
The general term for federal income taxes, FUTA taxes, Gross Wages, etc
Payroll Liabilities
This is the order of preference for financial spreading
Audit, Review, Tax Return, Compilation Report and Company Prepared. Why?
Debt type financing provided by internal source(s) (BOTH TO/FROM)
Shareholder Loans
On Schedule 1, #5 what total of what schedule(s) are reported on this line (Hint: ones that we have discussed)
Sch E Part 1 Rental Real Estate
Sch E Part 2 Passthrough
Sch E Part 3 Estates & Trusts
Form 4835, what is this?
What is the typical order of spreading (Passthrough)
Balance Sheet
Income Statement/Rental
Schedule K
M-1, M-2
If M-3 (and skipping M-1), then M-2
Future expenses that are paid in advance
Prepaid Expense
Where do you go to find all depreciation and amortization that should be included on the spread
Cash Flow Statement
Explain how shareholder loans are recognized on the PCF (Repayments, Loans to/from)
Discussion.
Difference between Sch F and Form 4835
Sch F Profit or Loss from Farming
4835 Farm Rental Income and Expenses
Why isnt 4835 Rental Income reported on Sch E Part 1?
Which Tax Return M-2 distinguishes Cash vs Property Distributions and Contributions
1065 (Partnership)
Expenses incurred and recognized on the books before it has paid.
Accrued Expenses
Form 1041?
Where do you find distributions?
Where do you find ownership details?
Estates & Trust
Trick questions...
Debt Section:
1. When credit card/Installment Loans/Retail Contracts payments are not provided
2. Estimating Mortgage
3. HELOC/LOC/Margin Loans
1. 3.5% payment of outstanding balance
2. Verify year of purchase, find interest rate, estimated 30 year fixed rate, and keep escrow.
3. WJS Prime + 1%
On the PTR, these 3 things fall under retirement income.
Which two should you pay attention to whether an amount should be included and why?
IRA distributions, Pensions and Annuities and Social Security.
IRA and Pension, due to Rollover
IRA due to QCD (A QCD is a direct transfer of funds from your IRA, payable directly to a qualified charity)
Besides the obvious/typical places, where else should you check for inclusion of depreciation and interest expense?
Updating the log
Let's Discuss
Disregarded Entities receiving K-1s
Lets Discuss
How do you determine if Real Estate Taxes should be included
Discussion
A payment by a mutual fund or an exchange-traded fund (ETF) of a portion of the proceeds from the fund's sales of stocks and other assets from within its portfolio.
Capital Gain Distribution. Why do we not include on the PCF?
When a borrower is showing assets held in a trust, how should the bank look at these assets . . . are they liquid?
Taken from TRUST Training PPT-HOOK LAW presentation with New Analyst training material.
Assets in a trust are liquid to the same extent that assets are liquid in the hands of an individual. However, for a trust it is vital to remember that it is the Trustee, not the beneficiary and not the grantor, who has the power to liquidate assets.
How and What part of the PCF does this impact us? Does it impact us?
Should distributions and/or guaranteed payments from an entity to a trust be attributed as income to the individual (or vice versa counted as outflow of contributions to the entity)? Does this impact us?
Taken from TRUST Training PPT-HOOK LAW Firm presentation with New Analyst training material.
Discuss.
Why is related party rent an addback to EBITDA (auto dealership template)?
Discussion
Explain Schedule D of the personal tax return (Short Term vs Long Term)
Discussion.