Event Calendar

Saturday, November 14, 2020

Commercial Lending Series: Analyzing Commercial Tax Returns: Forms 1065, 1120, 1120S & K-1s

Start Date: 5/14/2020 1:00 PM MDT
End Date: 11/14/2020 2:30 PM MST

Organization Name: Independent Bankers of Colorado

Tara F. Hunter
Phone: (303) 832-2000

Commercial Lending Series: Analyzing Commercial Tax Returns: Forms 1065, 1120, 1120S & K-1s
1:00 pm – 2:30 pm MT

Commercial lending brings big risks – and rewards.  Determining repayment ability for various business entities can be rigorous.  Are you up for the challenge?  Do you understand the forms?

  • Understand financial statement assurance levels, including the level of reliability to place in income tax returns and financial statements
  • Distinguish between the income tax forms that are applicable to each business type and which additional documents to request to complement your analysis
  • Determine borrowers’ repayment capacity based on income tax statements, including recurring and nonrecurring items
  • Understand pass-through entities, including Schedule E Part II, Schedule K-1, transfer of capital between ownership and the business, and actual cash flow
  • Review business entity income tax returns, such as Forms 1065, 1120, and 1120S, as well as Schedule C, Schedule E Parts I and II, and Schedule F of Form 1040
  • Derive nonfinancial information from tax returns which can drive borrower discussion and greater insight into the subject entity
The accurate identification and measurement of primary and secondary sources of loan repayment are crucial components of the initial credit decision and ongoing credit risk monitoring.  Many financial institutions heavily rely on income tax returns when determining the ability to repay.  This presentation will take a comprehensive look at deriving repayment ability from entity income tax returns, including Forms 1120, 1065, and 1120S.  In addition to providing ‘tax to cash’ training, this webinar will provide insight regarding other information that can be gained from income tax returns, weaknesses in relying on income tax returns for complex transactions, and the transfer of capital between ownership and the subject entity. 

This jam-packed webinar is designed for lending personnel responsible for analyzing borrowers’ ability to repay based on income tax returns.  The presentation will be at a beginner-to-intermediate level.  However, each topic leads to more advanced concepts, so lenders at every level will benefit.  Although many rely on software to analyze income tax returns, it’s crucial to understand the concepts applied by the software in determining repayment ability.
  • Handout will follow a line-by-line approach in analyzing income tax and can be used as a daily reference
  • Employee training log
  • Interactive quiz

Aaron Lewis, Young & Associates, Inc. 
Aaron Lewis is a senior consultant at Young & Associates, Inc. With over 15 years in the banking industry, his expertise is now dedicated to the lending division of Young & Associates where he assists financial institutions with loan, ALLL, policy, and credit-process and compliance reviews.  He also conducts seminars on credit risk and compliance.
Prior to joining Young & Associates, Aaron was the Vice President Credit Administrator of a community financial institution in southeast Michigan and managed all facets of the lending function, including originations, underwriting, ALLL analysis, servicing, and secondary market compliance.  He holds a Bachelor’s in finance from Michigan State University and graduated from the Graduate School of Banking, University of Wisconsin.

1. Live Webinar Includes
  • One connection to the Live Webinar
  • Handout and Take-Away Toolkit
  • Available on desktop, mobile & tablet
  • Presenter’s contact info for follow-up
2. Recorded Webinar Includes
  • Available 6 business days following Live date
  • Handout and Take-Away Toolkit
  • Available on desktop, mobile & tablet
  • Free Digital Download, yours to keep
  • Share link with anyone at your institution
  • Presenter’s contact info for follow-up
3. Purchase the BOTH Option to receive all the benefits listed above!