RC_LP_U_305.3 Supporting Income and Loss on Tax Returns
MBA Member Price: $49.00
Nonmember Price: $79.00Purchase
This is a single-family/residential course.
This course discusses using tax returns to determine qualifying income for self-employed borrowers when underwriting mortgage loans. The course examines Schedule C, Schedule D, and Schedule F of Form 1040 and how these types of income are adjusted using Freddie Mac's Form 91 Income Calculations (Schedule Analysis Method) to determine qualifying income. This form will be referred to in the course as Form 91.
Supporting Income and Loss on Tax Returns begins with a discussion of the Sole Proprietorship business structure. It reviews Schedule C (Form 1040), Profit or Loss From Business and how underwriters adjust Schedule C income using Form 91. Students then practice those concepts using a case study. The course continues with Schedule D (Form 1040), Capital Gains and Losses and explains how income and losses reported there are adjusted to arrive at qualifying income. The course concludes with an examination of Schedule F (Form 1040), Profit or Loss From Farming and a case study focused on that schedule.
Seat time approximately one (1) hour.