This is a single-family/residential module.
Reviewing a borrower's personal tax return can be a daunting task. Forms and schedules abound, each one connected to the other, with numbers that are counted as income, losses, exemptions, and deductions. It is easy to become overwhelmed!
In Tax Return Basics you will learn when it is necessary to request borrower tax returns, become familiar with the various IRS schedules, and gain an understanding of how a borrower's income "flows" through the tax returns.
This module also includes an overview of basic business structures, in which you will learn how business income is taken from business returns and added to personal tax returns. While this module provides an overview of business types, analyzing business tax returns and financial information is an advanced underwriting skill and is not covered as part of this course.
This module concludes with a discussion of the methods used by the industry to analyze personal tax returns and some related definitions.
The U.S. Individual Tax Return
Methods of Analyzing Tax Returns
Case Study - The Llama Loan
Seat time approximately one (1) hour.