RC_LP_U_305.4 Supplemental Income and Loss on Tax Returns

MBA Member Price: $49.00

Nonmember Price: $79.00


This is a single-family/residential course.

This course explains how to analyze income reported on Schedule E (Form 1040) and Schedule K-1 (Form 1065) for mortgage lending underwriting. It discusses how income reported on these tax returns is adjusted using Freddie Mac's Form 91 Income Calculations (Schedule Analysis Method) and Form 92 Net Rental Income Calculations - Schedule E to determine qualifying income. For the purposes of this course, these forms will be called Form 91 and Form 92.

Supplemental Income and Loss on Tax Returns begins by introducing the Schedule E (Form 1040), Supplemental Income and Loss form, which is used to report income and loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc. It describes how income from royalties reported on this form is analyzed using Form 91. Next, it explains how rental income reported on Schedule E is calculated using Form 92. Then it provides students an opportunity to practice calculating rental income with a case study. The course then introduces Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. and discusses how it is used in connection with Schedule E to report partnership income. It explains how Form 91 is used to calculate this income and provides a practice exercise where partnership income is calculated using a case study.


  • Schedule E: Supplemental Income and Loss
  • Schedule E: Case Study - The Llama Loan
  • Schedule E and Partnership K-1 (Form 1065)
  • Schedule K-1 (Form 1065) - The Llama Loan

    Seat time approximately one (1) hour.

    Copyright 2019.

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