Converting a 1040 Personal Return to Cash Flow Part 1: Schedules B & C

On-Demand Webinar:
StreamedFeb 3, 2022Duration90 minutes
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Borrowers don’t repay debt with taxable income; they use cash flow.

Can you accurately interpret personal tax returns and identify reliable, recurring income?
  • Understand recurring versus non-recurring incomes or losses from Page 1 of Form 1040
  • Identify recurring and non-recurring income from Schedule B: Interest and Dividends
  • Differentiate “pass-through” interest and dividend incomes from real cash flow earned from Partnerships or S Corporations
  • Recognize four forms of hidden income and one hidden expense in Schedule C: Sole Proprietorships


In today’s tough lending environment, understanding a borrower’s true cash flow is as important as ever. This webinar will take the mystery out of personal tax returns. No more guessing how much cash income a borrower is really earning. Cash flow and taxable income are usually different, but with this process and the free Lenders Tax Analyzer© software, you will learn an easy, reliable method to convert a personal tax return (Form 1040) into a cash flow statement.

Designed for consumer and commercial lenders, Part 1 of this two-part series will teach you how to cash flow the front page of Form 1040, Schedule B (Interest and Dividend Incomes) and Schedule C (Sole Proprietorship Incomes). When you finish this session, you will be able do a little ‘magic’ and convert taxable income into actual cash flow that you can plug into your credit scoring model, your debt-to-income ratio, or your disposable income calculation. (Note: This method does not follow Fannie, Freddie, or QM rules used in mortgage lending.)


This informative session is designed for lending personnel, including chief lending officers, loan officers, loan underwriters, loan sales staff, credit analysts, loan processors, branch managers, CEOs, and other key lending staff. Service representatives, new accounts personnel, and frontline staff involved in the lending function will also benefit.


  • Free copy of Lenders Tax Analyzer© software
  • PDF copy of the slides
  • Employee training log
  • Interactive quiz
  • Attendance certificate provided to self-report CE credits

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your agency is prohibited. Print materials may be copied for eligible participants only.

Presented By

Tim Harrington, CPATim Harrington
TEAM Resources