Calculating Income from 1040, K1 & 1120S (S Corporation)

Calculating Income from 1040, K1 & 1120S

(S Corporation)

Tax Return Review Series

December 2017

Genworth Mortgage Insurance Corporation

?2017 Genworth Financial, Inc. All rights reserved.

Objective

Understand the meaning of ¡°Self Employed¡±

???

Learn to use Fannie Mae¡¯s Form 1084 to calculate supportable

income using tax returns. We will also include a brief

overview of Freddie Mac Guidelines

???

Complete Fannie Mae¡¯s 1084

???

¨C W2 from 1120S (Section 1)

¨C 1120S K1 Review (Section 9)

¨C 1120S Review (Section 10)

Complete the Solvency Calculator

???

¨C Solvency/Liquidity Test

Tax return Series Form 1120 with K1

Fannie Mae Updates

SEL 2015-09

???

¨C Cash Flow Analysis Form updated

¨C Sections of Chapter B3-3-2 for SelfEmployed Borrowers updated

? Evidence of liquidity if no distributions made

from partnerships or S corps

¨C DU updated to allow one year personal

and business tax returns for certain case

files

¨C Changes effective for applications dated

February 1, 2016

Tax return Series Form 1120 with K1

2016 Fannie Mae Updates

SEL 2016-05

???

¨C Updates to Business Income

? Eliminate requirement to confirm

borrower has access to income

? Guidance for methods lenders may use

to determine adequate business liquidity

when liquidity assessment is required

? Verbal verifications of employment for a

self-employed borrower can be obtained

within 120 days prior to note date

¨C Chapter B3-3-1.07, 09 and B3-3-2 of

the Selling Guide have been updated

¨C Effective on or before October 1, 2016

but lenders and implement

immediately

Tax return Series Form 1120 with K1

S Corporation Income

Tax return Series Form 1120 with K1

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download