This course is designed to review a full set of tax returns for the purpose of converting Taxable Income into Cash Flow Income in order to determine the ability of an individual to service present and proposed debt. It will start by walking through a set of personal set of tax return while explaining the purpose of each form and indicating the adjustments that must be made to calculate cash flow income. After all, loans are repaid from “Cash” and not Income listed on Line 22 of the Income Tax Return.

The course will use a comprehensive case study to analyze the tax returns of a couple in which one is self employed and both have ownership interests in other business entities. It will demonstrate how to employ the Cash Analysis Method by going through a step-by-step approach in analyzing tax returns of the Self-Employed Borrower. The key concept is to demonstrate the transformation of Taxable Income (Line 22) into Cash Flow income. If you are using Taxable Income to qualify the Self-Employed Borrower for a loan, your analysis may not provide an accurate assessment of the cash that’s generated by this type of borrower.

After taking this course, the participant will:

  • Have a better understanding of the major tax forms and schedules utilized by the Self-Employed Borrower
  • Understand the flow of various tax forms and schedules into the 1040 Form
  • Know the most common adjustments required to be made to Taxable Income to convert into Cash Flow Income
  • Know the impact of Non-Cash Charges and Recurring / Non-Recurring events on Taxable Income


This course is designed for anyone who must analyze the Self-Employed Borrower or must rely upon the Tax Returns as the source of information in order to make loan decisions, including, but not limited to:

  • Credit Analysts
  • Commercial Lending Personnel
  • Consumer Lending Personnel
  • Branch Managers
  • Senior Loan Officer
  • Senior Credit Officers
  • Loan Review Personnel


"Jeffery did a fantastic job all week keeping us engaged in the material and involved. He was a fantastic coordinator & lead professor"

Cliff Knowlton, Prime South

"WONDERFUL!! Great Instructor, great information. Will definitely attend more of Jeffery's classes".

Ansley Oliver, Georgia Commerce Bank

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